Deputy Development Minister Mateusz Morawiecki: among the pillars of capital construction, among others, Employee programs Photo: PAP / Jacek Turczyk
He introduced, among others, details of the plan concerning OFE, which is first mentioned during Saturday’s congress of the Law and Justice party leader Jaroslaw Kaczynski. The headquarters of the Warsaw Stock Exchange Morawiecki presented the pillars of “Capital Construction Program,” which is to be part of his “Plan for Responsible Development”.
The program provides the transfer of 1 January 2018, 75 per cent. OFE assets on Individual Pension Accounts of all participants of OPF 16.5 million, ie approx. 6.3 thousand. zł per person and the transfer of the remaining 25 percent. of pension fund assets to the Demographic Reserve Fund.
the transfer of funds from the OPF to the third pillar may be a good idea
– there was not and has no plans to nationalize pension funds, but we have a very good plan on how to build Polish capital “- assured Morawiecki.” the plan is that the money from OFE we want to convey the Poles – pointed out.
According to Deputy system OFE or provide higher pensions, or not finance or economic development.
the current conference the deputy minister of family and working Marcin Zieleniecka stressed that the current model OFE no justified because of the 16.5 million participants OFE only 2.5 million chosen funds in 2014, and now the pension contributions in the amount of 19.52 percent. only 2.92 percent. goes to the pension funds. In contrast, a system of “slider”, the sector OFE “will generate solid net outflows.”
Judgment of the Constitutional Court
Morawiecki noted that plans for the open pension funds are designed to ensure that measures are still gathered in open pension funds, which have been recognized by the Tribunal for the public, “were indeed public.”
Source: TVP
75 percent. assets will go to IKE
According to the initial concept – as emphasized Deputy Prime Minister – 75 percent. OFE assets (103 million zł) would be transferred from 1 January 2018 year to Individual Pension Accounts of all participants of OPF 16.5 million, or an average of 6.3 thousand. zł per person. At the same time there would be a transformation of OFE in the “Investment Funds Polish Shares” and Pension companies would be transformed into the Investment Fund Company (TFI).
President of the Polish Development Fund Paul Boris explained that therefore “PTE, which would manage the OFE would cease to function based on the current law. ” “Would start to operate in accordance with the law on investment funds and pension companies would be transformed simply TFI and Open Pension Funds would be transformed into investment funds” – he said.
OFE disappear. Analysts: it is a natural consequence of the decision of the previous government
A new social contract
He added Morawiecki, IKE replace OFE and therefore it would be a kind of ” a new social contract. ” At the same time it would be obliged to buy for at least 75 percent. measures IKE periodic pension or lifetime, with 25 percent. a lump sum. It was about it that the money had not been “przejedzone.”
Demographic Reserve Fund
On the other hand, the remaining 25 percent. assets of OFE (35 billion zł), it is assumed the program would be transferred “under the Act” to the Demographic Reserve Fund, “the real purpose of strengthening the financial buffer of the pension system.” These agents within the FRD could manage Polish Development Fund, and some of them could also hit the third pension pillar.
– We propose that the Demographic Reserve Fund in real terms for strengthening retirement security for all citizens, we do not want to this was absorbed once by the state budget, as did our predecessors from 160 billion zł – emphasized Morawiecki.
The WSE back red. The reaction to the announced changes in OPF?
Programs Employee
Another presented on Monday by Morawiecki pillars Construction Program Capital is the introduction of a universal system of voluntary occupational pension schemes in the corporate sector, ie. Employee Equity Plans. Management of occupational capital would have to deal with the Polish Development Fund.
The idea is that employers within the PPK constituency contributions to the fund, participation in the program would affect businesses employing more than 19 employees, while smaller companies wybierałyby between the PPK and the so-called. Individual Plan Capital. The program automatically saved would be employed people between 19 and 55 years of age, although participation in the PPK could give up.
The employee contribution would pay 2 percent. (Extendable by a further 2 percentage points), the employer – a contribution of 1.5 per cent. (With the possibility to increase by 1 pp.), While an additional 0.5 percent. would be paid by the state under the Labour Fund. Employers could be exempt from social security contributions, and employees with contributions for pension insurance.
The benefits would consist of eg. The free use of these funds at 25 per cent. And 75 per cent. could hit the redemption term annuity or perpetual. An additional 15 percent. It could be used in case of health problems. These measures could also be used to repurchase own share when buying a flat.
Individual plans capital
Another pillar of the capital construction is to be reform of the third pillar pension schemes, involving the simplification of IKE and IKZE and the construction of individual capital plans for the smallest companies (up to 19 employees). The program would apply, therefore approx. 2.2 million workers employed by micro and would apply from 2019 years.
Morawiecki also presented a simulation of retirement income PPK. The conclusions were that the 4-percent premium, after 40 years of contributions, at 3 percent. the annual rate of return on investment and 2 percent. annual increase in salary of the person earning an average of 4313 zł, it could obtain within the PPK 1400 zł 18 years of performance. The estimated amount of accumulated savings participant PPK could thereafter be 233 thousand. zł.
According to Deputy State fiscal cost of the incentives for the PPK and the CPI would constitute approx. 0.8 per cent. GDP.
Public Funds Real Estate
Another pillar of the Capital Construction Programme would be introduction of a central electronic record “third pillar” programs of the Social Insurance Institution, which would give, among others, the ability to integrate with a bank account and the possibility of better financial planning. Another pillar – the introduction of universal access to real estate investment in the form of Public Real Estate Funds. PFN would be listed on the stock market, would have a minimum capital of over 25 million zł, would invest exclusively in real estate.
Among the pillars would also introduce a system of premium government bonds. These would be issued by the Treasury zero coupon bonds.
Another pillar is the introduction of a lower tax on long-term investments. It would reduce the income tax on capital investments over 12 months.
Morawiecki argued that the effect of “Capital Construction Program” can be increased by 5.5 million the number of participants of the III-pillar occupational pension schemes, as well as to 22 billion zł per year of new savings in the third pillar. This will also improve the long-term growth rate of GDP per year by about 0.4 percentage points.
Deputy Prime Minister stressed that everything will be realized “if this program is so politically finally approved.” “We tried to interpret the political will for conduct on OFE” – he said, referring to Saturday’s chairman of Law and Justice.
– The implementation of this program requires a wide range of legislative changes – said Deputy Prime Minister. – Open the presentation discussion on these proposals – he added.
He acknowledged that “different stakeholders have different interests.” – But we all agree that, in the medium and long-term interest of Polish is to build the strength of the Polish capital, including through savings – said Deputy Prime Minister.
Analyst: the transfer of 25 per cent. OFE assets to FRD is nationalization
The delegation of 25 per cent. remaining open pension funds assets to the Demographic Reserve Fund is a nationalization of these measures, despite the fact that the Deputy Prime Minister Morawiecki assured of something else – says principal analyst at Investment Xelion Piotr Kuczynski.
Kuczynski noted in an interview with PAP that announced term change is distant – they would have to take place in 2018. – So the reaction of the stock exchange is very moderately negative and initially only be strong – rated. WIG 20 fell on a Monday morning, more than 2 per cent., But later declines persisted at around 1 percent. According to Kuczynski is not much.
According to the analyst, if the fourth OFE assets, including foreign, will be transferred to the Demographic Reserve Fund, it would mean the nationalization, although – as he said – Prime Minister Morawiecki assured of something else. – I do not understand how you can say that this is not nationalization – said Kuczynski.
his opinion, you should consider whether Pension companies managing OFE will not be able to sue the changes, if not to the Constitutional Court, the European institutions, which can believe in such cases. “According to me, may lead to international arbitration,” – adds the analyst.
According to him, if the TFI, which are subject to Individual Retirement Accounts, are to operate as normal investment funds, the shares of the open pension funds should be transferred to each individual account. – We do not know how it will be shared and how these shares will be assigned to individuals. It follows that everyone would get as much as they had saved, but we do not know by what rules, what actions will get. I do not know – he added.
Conference was to protect the stock exchange
Kuczynski believes that Deputy Morawiecki probably it does not know, which is not surprising because work on these solutions are just beginning. – This conference was convened only after this, that there was no impact (on the stock exchange – PAP) resulting from yesterday’s speech President Kaczynski. If that was so, he said that the president Kaczynski, today we would not have minus one stock market or minus two, minus only five percent – said Kuczynski.
The money from the OPF to plan Morawiecki? “The assumption that the money will be lost too bold”
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PO: implementation of the plan PiS will reduce pensions
Platform Civic criticizes plan PiS concerning changes in open pension funds and the pension system. According to the former deputy finance minister of Isabel Hazel its implementation will result in lower pensions. Ministry of Development believes that the changes give a chance to increase future pension.
Isabella Hazel believes that the Deputy Prime Minister appeared on the Stock Exchange in order to reassure investors, as the government plans that pension capital Poles to manage state . This means that according to her, that the Law and Justice will determine about how to invest pension savings, or “real cash” which is in shares in the funds. Civic Platform deputy added that the PiS will start to manage the pension capital to the share price will fall, pension capital will melt and pensions will be lower. Izabela Hazel also argues that the previous government, or PO-PSL coalition dropped contribution to OFE and liquidated barren circulation of money relies on borrowing funds to open the money in order to be able to buy bonds. In her opinion, no Pole lost on the reform of the penny and all that was an obligation of the state in the form of bonds, members of the open pension funds are today on sub-accounts in ZUS. Izabella Hazel said she was surprised to hear the announcement of the Deputy Prime Minister Morawiecki regarding the transfer of capital from the second compulsory pension pillar to the third voluntary. – Horse with a range of whoever tells you how you can replace the compulsory contribution, which is a tribute pubiczno-law on voluntary savings – said deputy PO in the Sejm. It argues that in this case, half of Poles say, just to give them the money. – If the shares or real cash, we’re moving to the fund of the state, I’m afraid, that we go on how Zablocki on the soap – said Izabella Hazel.
Tyszka: power under the guise of reform OFE chosen to money Poles
the club Kukiz’15 against the transfer of 35 billion zlotys from the OPF to the Demographic Reserve Fund.
Stanislaw Tyszka, a member of the presidium of the club Kukiz’15 and Deputy Speaker of Parliament said on press conference in the parliament that the plan outlined by Deputy Morawiecki “means that immediately 35 billion zlotys will be easily nationalized.” – This is simply unacceptable – said the representative of the club Kukiz’15.
Stanislaw Tyszka also said that the club Kukiz’15 is able to accept the transfer of the remaining funds to the third pillar, but only if the money will be transferred entirely to the Poles. – We believe that it should be possible to pay the Poles money from OFE, pass the Poles the possibility of individual management means there collected so that no authority could no longer put his dirty hands on private savings Poles – explained the deputy Tyszka.
this is the second and final partition of OFE
this is what Justice proposes, is the second and final partition of OFE – as the leader of Modern Ryszard Petru referred to the government’s plans regarding the Open Pension Funds. He emphasized that “the first partition made PO.”
Petru at a press conference in Wroclaw, called the plan “the second and final cutting OFE”. – I recall that the first cutting made the Civic Platform. Unfortunately, it has paved the way PiS to do the same, only more brazen and really proposing nationalization – said the leader of the Modern.
his opinion, Deputy Morawiecki “wrong to claim that this is not nationalization.”
– When PiS will do what it says it will do, they will be able to fill up their people private companies, which now have shares of pension funds. It is not only the boards of these companies, but boards. It is not only jump on money, but on the stroke position – said Petru.
In his opinion, it is very “dangerous nationalization, he takes more than a hundred billion zł Polish company by one party, which still lies to us that this is the third pillar.”
– This is a great deception, which we can not give fooled. Besides, it means nationalization, which was not in this part of Europe, really since the days of communism. It is outrageous that all this is still suffused with the sauce, it will be our real economy – said the leader of the Modern.
He added, has a claim to the “PO for the PiS paved the way to the final cutting OFE”. – I am aware that the Civic Platform took notes and it was a 140 billion zł, and now Justice made a second, final cutting of our savings. The question now arises of which will be paid our pensions? Today we have a huge hole in the ZUS, which we all know is growing. PiS really takes us to our dreams – said Petru.
Modern Leader said that the need to oppose and “is considered a class action lawsuit, but only after the creation of the law.”
R.Petru: Law and Justice carries out the second attack on the OFE
TVN24
IAR, PAP, abo
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