PM presents pension system reform

All the funds from the Open Pension Funds (OFE), amounting to PLN 162 bn (EUR 37.76 bn), will be transferred to private, individual pension accounts, Prime Minister Mateusz Morawiecki said on Monday.

"These funds will be in 100 percent private and could be inherited, as was promised 20 years ago," the PM stated.

In line with recent changes in the pension system, Poles will have a choice: whether to transfer funds to an Individual Retirement Account (IKE) or transfer them to the Social Insurance Institution (ZUS). As PM Morawiecki pointed out, after reaching retirement age, it will be possible to use these funds freely.

Mr Morawiecki stressed that the basic problem in Poland was the "lack of ability to make savings for the later years of life, for investments that could benefit the entire economy".

He stated that the pension system would have an "evolutionary rebuilding" and would be based on three pillars - on ZUS, on IKE, and on the Employee Capital Plans (PPK).

The prime minister said that funds from Open Pension Funds would be assigned to the pension accounts of almost 16 million Poles. Transfers to the Individual Retirement Accounts would be charged with a 15 percent fee.