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

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Play Communications' Warsaw IPO price sets value at over PLN4bn

Play Communications, owner of second biggest Polish mobile operator P4, has set the price of its upcoming initial public offering (IPO) at PLN36 (€8.5) per share, putting the value ... more

Poland moves closer to buying Patriot missiles from US

Poland and the US have signed a memorandum that may pave the way to Warsaw buying Patriot surface-to-air missile interception systems from US company Raytheon, the Polish defence ministry said on ... more