Polish government to send pension funds' overhaul draft to parliament by mid-Nov

By bne IntelliNews October 10, 2013

The draft amendment of the open pension fund (OFE) law will be examined by the lower chamber of the Polish parliament (Sejm) in the mid-November, according to vice-premier and minister of finance Jacek Rostowski.
The minister stressed that the government wanted to keep all equities in open pension funds allowing the funds to continue to invest and to support the real economy.
At the beginning of September, the government proposed to move  bond portfolios of 13 existing pension funds to the state Social Security Board (ZUS) and to lift hurdles on the funds' investment programmes, also eliminating their benchmarks. Poles will have three months (after the changes take effect) to choose whether they want to transfer their old-age pension contribution (proposed at 2.92% of gross wages vs. current 19.52%) to the fund or ZUS. If they make no decision, they will be transferred to ZUS by default.
Co-founders of the pension reform, conducted in 1998 in Poland, i.e. Jerzy Buzek, Jerzy Hausner and Leszek Balcerowicz are highly critical about the planned changes .

Related Articles

Poland reportedly defies EU court injunction on logging in Unesco-listed forest

Poland will not comply with the Court of Justice of the European Union’s injunction on logging in the ancient Bialowieza Forest, a newswire report claimed on August 4. Warsaw’s stance in ... more

Polish regulator gives RBI new IPO deadline

Polish financial market regulator KNF on August 2 gave Raiffeisen Bank International (RBI) a new deadline of May 15, 2018 to float 15% of its Polish unit. Under the terms of its purchase of the ... more

Central Europe’s factories remain busy despite a summer lull in PMIs

Manufacturers in Central Europe reported a step back in activity and confidence in July, purchasing managers’ indices (PMI) released by IHS Markit on August 1 showed. While, the indicators still ... more

Dismiss