PMR Online access    |   tel. +48 12 340 51 00    |   E-mail: info@pmrcorporate.com
 


 

President approves pension reform


2011-04-08



President Bronislaw Komorowski on 7 April signed into law the government’s pension reform plan. It will take effect on 1 May.

Under the plan, the part of mandatory pension contributions that is currently paid into open (i.e. private) pension funds (OFE) will be substantially reduced (to 2.3% from 7.3% of the gross salary this year, before rising slightly to 3.5% by 2018), and a correspondingly bigger chunk will be transferred to special sub-accounts within the state system, which pays for today’s pensions. The effect, says the government, will be to significantly reduce the state’s borrowing needs (by PLN 190bn or €47.6bn until 2020, including PLN 11bn or €2.8bn already this year), without in any way jeopardising today’s workers’ pension savings.

The reform is strongly opposed by leading business groups and Law and Justice (PiS), the main opposition party, and a constitutional challenge cannot be ruled out.



Browse and search in our archive »


subscribe to PMR RSS NEWS channelsSubscribe to PMR RSS NEWS channels »




Free monthly e-letter containing latest news, analyses and business information on economic situation in Poland, Russia, Bulgaria, Czech Republic, Hungary, Romania, Slovakia, Ukraine, Kazakhstan.
Relevant news
 

Useful links         Privacy Policy
Copyright © 2018 PMR. All rights reserved.

PMR is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern Europe as well as other emerging markets. PMR key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). With over fourteen years of experience, high international standards in projects and publications, highly skilled multilingual staff and a wide network of co-operating research companies and market experts, PMR is one of the largest companies of its type in the region.