Reform of open pension funds (OFE): bond part in ZUS, stock part in OFE, voluntary membership in OFE

The details were announced by Prime Minister Donald Tusk during a special press conference.

Donald Tusk i Jacek Rostowski, zdjęcie 1 1 of 11
Maciej Śmiarowski/KPRM

The Prime Minister underlined that a number of factors were taken into account when the assumptions were created:

  • The public debt issue since to this day the OFE system was based on an increasing public debt.
  • Retirement benefit safety, so as to secure 100% of lifelong retirement payments.
  • Neutrality of changes from the perspective of the current and future retiree, so as to ensure that the changes do not affect the amount of the retirement premium.

Donald Tusk believes that the current OFE system would hinder the planned civilizational leap taking into account, for example, the inflow of subsidies from the new EU budget and the situation of self-governments.

The idea is also to reduce the risk related to stock exchange investing. “This risk should be related to the will of the citizen,” stated the head of government and explained that the state should not succumb to the temptation to nationalise. “Whilst preparing the assumptions, we excluded the possibility of the state’s taking over of OFE shares,” stated Donald Tusk.

Main assumptions of changes to OFE:

  • Bond portfolio in OFE will be transferred to ZUS.
  • Future premium to OFE will be voluntary.
  • Premium of 2.92 percent in the stock portfolio.
  • Funds will be gradually transferred from OFE to ZUS prior to retirement (so-called slider).

The minister of finance Jacek Rostowski informed about the plans to liberalise the investment policy of open pension funds. The idea is to allow OFE to more actively invest in the economy. Jacek Rostowski explained that after the changes in the retirement system are introduced the only thing that the funds will not be able to do is to invest in treasury bonds or bonds guaranteed by the state treasury.

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