Last day for Poles to pick pension option

Photo: flick/cc/money pictures

The last day of July ends the period when employed Poles may decide whether 2.92 percent of their pension contribution would be transferred to privately-owned open pension funds (OFEs).

If they do not do anything, all of the contributions will go to the state-managed Social Insurance Institution (ZUS).

So far, about a million Poles have decided to keep some of the pension money in OFEs, but the number has been growing especially quickly over the past few days and is expected to reach about 1.5 million. Altogether 14 million are entitled to the choice.

Staying with OFE requires an effort – a person needs to fill in a form, sign it and either bring it to ZUS or send it by post. The deadline is midnight and it is the date on the postmark that is decisive.

A majority of declarations that ZUS has received until now have come by post. Most OFEs made the choice easier for their clients by supplying the forms along with an pre-addressed envelope.

Poland modified its pension system in a reform approved last year. In early 2014, more than half of assets held by OFEs was transferred to ZUS. The reform also introduced the option of choosing whether to transfer part of the pension contribution to OFE at all.

This choice can be made again in two years’ time and then every four years. (kw/jb)

Source: IAR