Poland expects to introduce no major changes to its draft bill on new pension program – PPK, the head of the Polish Development Fund (PFR) Pawel Borys said on Twitter.
„. . . At present, work is going on concerning the settlement of the bill’s details, but it is already known that the scope of these changes will not be large,” Borys said.
According to the draft bill authored by the Ministry of Finance and presented in February, PPK pension plans are expected to cover up to 11 mln Polish employees as of 2019, with the introduction schedule extended to mid-2020. In the basic model, employees will pay 2% of their gross wage and employers 1.5%. Participation will be voluntary for employees, but on an opt-out basis. Investment funds will be in charge of managing the future retirees’ money, while PFR will manage infrastructure for PPK and collect fees from fund managers to finance the activity.
The bill met with various objection from Poland’s largest state institutions, including the central bank (NBP), the financial market regulator (KNF) and the social insurer (ZUS), as well as select government ministries, the Solidarity trade union, employers lobbies and life insurance companies associated in the PIA.
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