Polish government sets up guarantee fund for OFE savers
January 29, 2014
The Polish government issued resolutions on additional limitations on private pension funds' (OFE) investment activity and on setting up a guarantee fund for protection of OFE savers, to which OFE will contribute 0.3% of net assets, the government's press office wrote in a statement following the cabinet sitting.
The OFE pension funds, to which Polish workers have been sending a portion of their social security premiums since a 1999 reform, will have to hand over 51.5% of end-January AuM in the form of Treasury papers, other Treasury-backed securities and cash to social security ZUS.
The rump funds will be barred from holding such Treasury-related securities in the future. Initial plans to set a lasting 75% equity allocation floor were dropped by the government. An equity allocation floor will be phased out to 2018.
Polish president signed the bill on December 27 but decided to send it to the Constitutional Tribunal.