Pension funds in North Macedonia reach €3.5 billion, second pillar surpasses 215 billion denars

By the end of September, the three private pension companies in North Macedonia were managing net assets worth 215.1 billion denars, or approximately €3.5 billion. Compared with the previous month, this amount increased by 1.3 percent. Data from the Agency for Supervision of Fully Funded Pension Insurance (MAPAS) show that 642,652 people are members of these funds.

“KB Prvo” manages the largest share of the assets, with 103.2 billion denars. It is followed by Sava, with 91.2 billion denars, while Triglav has 20.8 billion denars. These are savings from the second pension pillar, where contributions are deposited into individual accounts and invested to generate income for the insured members’ future pensions.

The increase in the value of the savings comes at a time when debate is returning over the sustainability of the pension system and possible changes to the way it operates. Prime Minister Hristijan Mickoski had previously mentioned the possibility of nationalizing the assets of the second pillar, a statement that prompted reactions from the companies managing the pension funds.

The Association of Pension Fund Management Companies assessed that such a measure would not be a long-term solution to the system’s difficulties. It stressed that the money in the second pillar is the individual property of the insured and, in the event of death, may be transferred to their heirs. According to the association, transferring these assets to the state pension fund would provide only temporary relief.

Although the total value of the accumulated assets amounts to billions of euros, this does not guarantee that every member will receive a high pension. The payment for each insured person is determined by the contributions paid, the length of insurance coverage and the returns generated through investments./Telegrafi/