Two major changes to the Polish mandatory pension fund system have been recommended by the Government.
The recommendations appear in a report issued by the Minister of Finance and the Minister of Labour and Social Policy, which will now form the basis for public consultation and, ultimately, draft legislation.
The first recommendation is for a transfer to the Social Insurance Institution (ZUS) of the assets in a member’s pension account with the transfer being made gradually starting 10 years before they reach retirement age.
The second recommendation is to implement one of three options:
- A ban on pension funds investing in treasury bonds and the compulsory transfer to ZUS of all pension fund assets that are not permitted to be invested in shares
- Giving current pension fund members the right to decide whether or not to continue their membership and transferring to ZUS the assets in the pension accounts of all members who do not make a positive choice to continue (with no right to re-join the fund).
- Making pension fund membership voluntary and also requiring each member to make an additional contribution of 2% of their pensionable earnings to their pension account.