At a meeting with the leaders of Open Pension Funds (OFEs) on Wednesday, Prime Minister Donald Tusk warned that the government would consider an alternative pension system in Poland if the institutions did not cut fees and increase pension payouts.

The PM said that the institutions concentrated too much on profits and too little on the interest of the retirees. He also criticised the funds for high fees and high costs, including a zł.500 million spent on the acquisition of new clients in 2009.

Mr Tusk stressed that he would rather see the current system reformed than a new one built. He expressed the hope that changes in the OFE-related regulations would be introduced at the beginning of 2010.

The government has already got a group of experts to propose possible changes to the law. Meanwhile, OFE leaders present at the meeting with PM Tusk also came up with some propositions of their own.

Apparently both the government and the OFEs largely agree on which elements of the system could be reformed, although major differences pertaining to particular solutions persist. Changes would include the introduction of multiple funds whose investment strategies would be tailored to the particular saver's age.