Poland to draft capital pension system legislation at turn of Q2 and Q3
March 13, 2017
The Polish government intends to craft the legislation which will rejig its capital pension savings system by the turn of Q2 and Q3, deputy PM, Finance and Development Minister Mateusz Morawiecki said on Friday.
"We want legislation to be ready at the turn of Q2 and Q3," Morawiecki said at the brokerage forum. "Together with the Labor Ministry we are trying to build a mechanism that we outlined a few months ago."
The government intends to transfer 25% of pension savings currently collected at the formerly mandatory OFE pension programs to the state's Demographic Reserve Fund and convert the rump OFE funds with the remaining 75% of savings into private investment funds, officials have previously said.
The government will seek to reduce the concentration of assets in the system as part of the reform, Morawiecki said.
"We don't like this certain 'cartelization' of the market," he said. "The three biggest OFE have 75% of assets, while all the others have only 25%."