Warsaw launches pension shakeup

“Budget saved at the expense of pensioners”, headlinesDziennik Gazeta Prawna, after the announcement of the most radical shakeup of the Polish pension system in 11 years. Under the existing part private/public pension system, Poles contribute 7.3% of their earnings to private pension funds (OFE), and 12.29% going to the social security (ZUS). Wishing to make up for a social security shortfall, the Polish government is to trim the OFE contribution to 2.3%, with the remaining 5% sent to ZUS. The government claims this will result in higher pensions in the future, but experts are sceptical. “The already complicated system will become even more complex in order to, on one hand, put out fires in state finances and, on the other hand, to appease future pensioners,” concludes the Warsaw daily. It estimates that the overhaul of the pension system, to become effective in April, could bring the government 1.2% of GDP in savings.