The Government is planning fundamental changes to open pension funds, the Prime Minister has announced, including:
- The compulsory transfer to the Social Insurance Institution (ZUS) of the part of pension fund’s assets that pension funds are not allowed to invest in shares (starting with all Polish treasury bonds and bonds guaranteed by the Polish state held by the open pension funds on 3 September)
- Prohibiting any investment in Polish treasury bonds (which must all be redeemed) – the prohibition will not apply to treasury bonds of other EU countries
- Allowing current pension fund members to choose to continue to pay premiums (2.92% of their salary) to their pension fund, failing which they will be transferred to ZUS with their social security contributions. Anyone transferring contributions to ZUS cannot resume pension fund membership
- gradually transferring all funds in a member’s a pension fund account to ZUS, starting 10 years before they are due to reach retirement age
- reducing pension fund charges by 50%
Full details will eventually be published in a Government report, which is yet to be developed.