The Polish lower house approved the draft bill on OFE pension funds liquidation, transferring the OFE capital into private pension accounts (IKE).
On 13th February the bill was passed with 232 votes in favour, 219 votes against and no abstentions. It takes effect on 1st June 2020.
Earlier on 12th February a parliamentary public finance committee and social policy committee greenlighted eight amendments to the bill.
According to the bill, OFE capital worth PLN 154 bln will be automatically transferred to individual and private pension accounts IKE and charged with a transition fee corresponding to 15% of the total assets’ value. OFE savers will also have an option to have their savings transferred to the social insurer ZUS.
The bill will liquidate the Polish OFE pension system, created in 1999. Poland first mandated employees to divert a portion of their social security premiums to the funds, then later made it optional after handing the fixed-income portion of those funds back to the state system.
The bill is now heading to the upper house.
