The Agency for Supervision of Fully Funded Pension Insurance – MAPAS closely follows all activities and recommendations for the protection and prevention of the spread of the corona virus and supports the conclusions, measures and recommendations of the Government of the Republic of North Macedonia to deal with the threat of the COVID 19.

In order to minimize the risk of spreading the virus
and in order to protect the health of the pension fund members, their employees
and all citizens and
at the same time to ensure the continuity of the operation of the fully
funded pension insurance, MAPAS:

• provides uninterrupted communication with the pension
fund members through contact phones and contact e-mail;

• provides uninterrupted communication with all
entities under supervision – pension companies, custodians of the pension funds,
also with the Pension and Disability Insurance Fund and all regulators from the
financial sector, as well as with the International Organization of Pension
Supervisors (IOPS);

• postpones planned on-site controls of the pension
companies, pension funds and custodians in the period when the measures for
dealing with the threat of the COVID 19 pandemic apply;

• postpone the sales agent exams;

• postpone all planned visits for education;

• postpone all scheduled meetings with pension
regulators in the region;

postpone misdemeanor proceedings during the state of emergency

Also, MAPAS closely monitors the developments in the
fully funded pension insurance and the potential risks in the fully funded
pension insurance as a result of the spread of the virus COVID 19. In this
regard, MAPAS points out to the members and public that:

  • Pension funds are subject to cyclical movements, which mean an increase or decrease of the accounting unit values, depending on the allocation of the investment of funds and the movement of the value of the instruments in which pension funds are invested. Given that in the last two months the pandemic COVID 19 has had significant effects on the prices of all world financial markets, and macedonian pension funds have not remained immune to current global trends. However, it must be emphasized that these effects are short-term and the pension funds, by their nature, work in the long run, so their performance is assessed in the long run. It is logical and expected that during the entire period when members contribute in pension funds, there will be periods of weaker results, even financial crises in the entire capital market, at home or abroad, but what is it most important is the positive results from the periods of good operations to offset the effects of such market shocks.
  • The impact of such financial crises on members in pension funds with defined
    contributions also depends on the age of the member. Given that the average age
    of members of mandatory pension funds is 35 years and over 95% of members of
    mandatory pension funds are younger than 50, it is expected that these
    short-term adverse effects on pension funds will be neutralized in the years
    until retirement
  • Pension companies react appropriately to the new situation, fully adhering to the
    regulatory framework as well as to the internal regulations and documents.
    Pension companies invest the pension funds in order to achieve the highest
    yield, only for the benefit of the pension fund members and through
    diversification and due diligence, to minimize the risks from losses which
    might occur from the influences of the domestic and foreign financial markets. In
    doing so, the members of the management and supervisory boards employ care,
    efficiency and skills of prudent men in the same way as he/her would invest
    his/hers own funds.
  • One of the main recommendations of the OECD and the World Bank regarding such
    financial crises is to avoid rapid changes in pension systems in response to
    current situation. Pension systems are designed to work in the long run, and
    quick responses to relatively rare events can have potentially long-term
    negative consequences for pension systems.

In such a difficult time, MAPAS assures the continuity of the operation of the
fully funded pension insurance, continually monitors the developements and if
necessary will take additional actions and measures.