Polish PM proposes easing of pension reform plan
September 27, 2013
Polish PM Donald Tusk
The Polish government could ease back on its recent pension system reform proposals, allowing Poles to redirect a portion of their social security premiums back to private pension funds down the road, Prime Minister Donald Tusk said Thursday.
At issue is a policy initiative by the Polish government, announced in early September, to force Poles to choose between private pension funds OFE and the state social security fund ZUS for the final portion of their social security premium.
"It would be too restrictive for this decision to be final," Tusk said on Thursday.
In the evolving plan, Poles would be allowed to shift the flow of premiums back from OFE to ZUS or ZUS to OFE, separately the switches by intervals of two or three years, Tusk said.
A move will only redirect the premium, not shift capital from ZUS to OFE.
"Repeat choice: I like this idea," Tusk said. "Freedom of choice must be 100% freedom of choice," he added.
In early September, policy makers had said Poles will have a three month period to declare their desire to remain in the rump system and will be switched to a ZUS-only system if they fail to declare. Should they stay in the OFE fund, their premium to be sent to OFE will be at 2.92%.