Morawiecki: OFE reform to be passed by the end of the year

Poland’s cabinet plans to adopt by end-2017 a new reform that would effectively dissolve the open pension funds (OFEs). “We expect no major changes from the point of view of the capital market,” Deputy PM Mateusz Morawiecki said. The reform should largely meet the outline presented back in July 2016. Under this plan, 25 percent of OFE assets will be transferred to the state-owned Demographic Reserve Fund managed by the Polish Development Fund, while the rest of the assets, roughly matching the current equity allocation, will be transformed to investment funds that would function largely like the current optional pension accounts Individual Pension Accounts (IKE) and Individual Pension Security Account (IKZE).