Nearly 1.7m pension savers opt to remain with private pension funds
August 5, 2014
As many as 1,690,153 Poles had submitted petitions to continue to transfer a portion of their pension premium to private pension funds OFE under the reformed system as of the state of play on August 1, state social insurance board ZUS said in a statement.
Poles had to end-July to opt into the existing system by which a fraction of social security premiums are transferred to privately managed pension funds. Poland made the system optional, requiring registration for those who wished to remain in the system.
A portion of the social security premium of younger workers has been transferred to their private pension fund accounts since 1999, when the social security system was partially privatized.Through July ZUS will continue to transfer 2.8% of gross wages transferred to date. Further on the transfers will increase to 2.92% for those who decide to stay in the system.
The nearly 1.7 million requests by working Poles to retain their premium flows to the partially privatized segment of the pension system virtually guarantees that no politician would risk trying to abolish the system entirely, economist Ryszard Petru said of results to the opt-in period to the system, calling the 1.7 million figure "a success of the capital market."
The sum came despite a default opt-out formula and an advertising ban.