Polish Pension Revamp Targets $35 Billion of Private Funds
- Plan to boost savings marks biggest pension revamp since 1999
- Government seeks to dismantle privately owned pension funds
This article is for subscribers only.
Poland unveiled its biggest pension overhaul since 1999, though the government won’t take control of as big a share of the industry as some investors had feared.
The government on Monday outlined plans to dismantle its privately owned pension-fund system, calling it ineffective. The industry’s 139 billion-zloty ($35 billion) of assets will be transferred to individual retirement accounts, with at least a quarter to be managed by a state entity. Poles will be offered incentives to opt for long-term investment in a bid to swell pension savings. The details will be finalized during the next year.