OFE reform still at standstill

According to Deputy PM Mateusz Morawiecki, the planned OFE reform is not moving ahead as various ministries can’t reach an agreement regarding its details. “We are conducting talks with Family, Social and Labor Policy Minister Elżbieta Rafalska. There is no change to our plan, but there is also no final agreement,” Morawiecki said. Morawiecki wants 25 percent of OFE assets to 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, would 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). The Ministry of Family, Social and Labor Policy has been pushing back against that plan, as it claims it won’t provide sufficient security for savers.