Poland's pension system 'broke' says finance minister

"We need changes in the pension system. Government is undergoing a review of the system but nothing has been decided yet,” Rostowski, who is also Poland's deputy prime minister, has told the Rzeczpospolita newspaper.

"Not only is the intellectual foundation of the system broke but also its political and moral foundation he said.

In mid-April, Rostowski said that the 1999 pension reforms – which set up three so-called 'pillars' for insurance contributions – was a “giant mistake”, sparking off speculation that the government was intending to make a smash and grab on pension contributions to private institutions to help rescue state finances.

The Labour Ministry proposed a gradual shift of state-guaranteed private pension fund (OFE) assets to the state social-security system for those retiring within at least 10 years.

But Finance Minister Rostowski is now saying that a much broader review of the system is now under way. (pg)