OFE reform postponed to mid-2018

According to the government officials, the planned OFE reform could be implemented next July, instead of January 1, 2018, as it was planned. “It is a very complex reform which requires inter-ministerial agreements and also social insurance board ZUS needs to prepare for it,” Deputy PM Mateusz Morawiecki said, adding that the current system works “for now” and the new law shouldn’t be rushed. 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).