The government proposes that OFE participants should be free to chose between private Individual Retirement Accounts and transferring money to the Social Insurance Institution (ZUS). It will be possible to pay out OFE funds in total or in instalments, with no tax upon reaching retirement age, in line with the original objectives of the 1999 reform.
The Prime Minister also informed that the re-structuring of the pension scheme will be based on three pillars, namely ZUS, Employee Capital Plans and Individual Retirement Accounts. He explained that OFE funds, which total nearly PLN 162 billion, will be transferred to the retirement accounts of almost 16 million Poles.
As the head of the government announced, 100% of funds from OFE will be channelled to Poles’ individual retirement accounts. The Prime Minister added that these funds will be entirely private and inheritable.