Morawiecki: OFE reform in 1-2 years

According to Deputy PM Mateusz Morawiecki, the long-planned reform of the Open Pension Funds (OFE) should be implemented within the next 1-2 years. “We want to sort of privatize OFEs, the part with equities would be transferred to Individual Pension Accounts (IKE), while corporate bonds business would be moved to the Demographic Reserve Fund (FRD),” Morawiecki explained. Under the previous Morawiecki plan, 25 percent of OFE assets would be moved to the state-owned Demographic Reserve Fund managed by the Polish Development Fund, while the rest of the assets, would be transferred to investment funds that would function largely like the current optional pension accounts Individual Pension Accounts (IKE) and Individual Pension Security Account (IKZE). But he was opposed by the Labor Minister Elżbieta Rafalska who preferred dissolving OFE’s and putting all of its assets in the Social Security fund ZUS. With no agreement in sight, plans have been shelved.