One hundred and sixty two billion zlotys will be privatized. Money collected in the so-called Open Retirement Funds (OFE) are to go to individuals. Either to private retirement accounts (IKE) or to Social Insurance Institution (ZUS), depending on person’s preference. The prime minister presented arguments for the changes.
The end of the Open Retirement Funds is to come in early 2020. "The retirement system that we're proposing is based on three pillars: Social Insurance Institution (ZUS), Employees' Capital Pension Scheme (PPK) and Individual Retirement Account (IKE)" - Polish PM Mateusz Morawiecki explained at a press conference on Monday.
"We want to set the retirement system in order, as it is a crucial part of Poles' financial security when they retire," Morawiecki explained.
The prime minister explained that money from the OFE (about 162 billion zlotys) would be assigned to retirement accounts of nearly 16 million Poles. "All OFE members will have a choice: either to transfer their money to IKE or ZUS," said Morawiecki.
The only difference is that there will be a 15-percent charge for transfering the money to IKE, which is the default option. Transferring funds to ZUS will be free of charge.
It is estimated that if the whole 162 billion zlotys from OFE would be transferred to IKE, the 15-percent tax from would result in over 24 billion zlotys being transferred to ZUS.
Autor: gf / Źródło: TVN24 News in English, PAP