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President signs pension reform

30th December 2013
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The Constitutional Tribunal will verify whether the provisions of the reform are not in breach of the constitution

President Komorowski has expressed concerns with the pension overhaul
Courtesy of prezydent.pl
President Bronisław Komorowski has signed the bill introducing changes to Poland's pension system. At the same time, he has asked the Constitutional Tribunal to review the regulation.
 
Mr Komorowski had earlier expressed his concern about the pension system overhaul, but said that the move is necessary from the point of view of public finances. Several institutions have suggested that the regulation could be unconstitutional.
 
The president considers several aspects of the system overhaul questionable, including the provision saying that private pension funds (OFEs) will no longer be allowed to invest in government bonds and that they will be obliged to invest primarily in the stock exchange.
 
The pension reform involves the mandatory transfer of 51.5 percent of OFE assets to the Social Insurance Institution (ZUS), including all debt securities issued and guaranteed by the State Treasury. OFEs will no longer obligatory and each employed person will have four months every four years to decide whether 2.92 percent of their income goes to a chosen private fund or to ZUS.
 
 

From Warsaw Business Journal


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