Changes in the pension system was carried out by abusing public trust – GazetaPrawna.pl

by Paul Pelc 09.08.2016, 17:00

It will be difficult Poles effectively encourage long-term savings. source: ShutterStock

Ministry of Development has started 31 August 2016. public consultation project” A strategy for responsible development “. This document contains proposals for changes in the pension system based largely on the Construction Programme of Capital, which was presented by Deputy Matthew Morawiecki during a conference held at the Stock Exchange July 4, 2016 r.

It follows from the consultation addressed to the project, the strategy is to enable the construction of long-term capital Poles. For this purpose, the government envisages taking action that will allow increasing the scale of savings in the economy by building a culture of saving, dissemination of awareness of the benefits of investing in long-term instruments. The strategy fit well as changes in the existing functioning pension system. They rely on the reconstruction model of open pension funds and the introduction of workers’ capital plans, reforming the individual pension plans or employee use capital plans at the stage of their creation by TFI Polish Development Fund. The government also plans to create a central electronic record of capital pension schemes and other activities not related directly to the pension system.

On the other hand, within the Construction Program Capital (to be one of the strategic projects planned for the preparation and implementation of the 2020) is planned, among others, creating a common voluntary occupational and individual schemes of capital. Whereas the reform of the pension funds have to rely on reducing the cost of operation of the second pillar – 75 percent. OFE assets in the form of shares in Polish to be transferred to open-ended funds Polish shares within individual retirement accounts, and 25 percent. assets of the funds will be transferred to the Demographic Reserve Fund.

The current proposals are much less detailed than those presented on July 4, 2016. Stock Exchange. It is beyond doubt, however, that the proposed changes will disappear open pension funds, which will not be eliminated, but transformed into investment funds. This is to avoid litigation before arbitration with shareholders universal pension fund companies in connection with agreements on mutual protection of investments, but at the same time will cause the activity – including the investment policy of investment funds – will be subject to EU regulations. Unfortunately, the draft makes no mention of employee pension programs – therefore it is not known whether they will continue to operate under the existing rules, or will be converted into newly planned employee equity plans.

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