Poland to Shift $43 Billion to Private Pension Accounts
- Government to dismantle privately-managed OFE pension funds
- Plan helps create budget flexibility for Polish government
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Poland plans to overhaul its pension system in a way that ends uncertainty over the future of assets managed by privately-held pension funds and helps the government avoid widening the budget deficit. Polish stocks fell and government bonds rose.
The government proposed transferring all of the 162 billion zloty ($43 billion) of assets in the privately-managed part of the pension system known as OFE to individual pension accounts, Prime Minister Mateusz Morawiecki said Monday in Warsaw. The state-owned social security fund will pick up a one-time 15 percent fee in the process. The cabinet sees the move as neutral for the stock market.