Abstract
The pension system and pension funds are important elements of the economic system. Their functioning is analysed not only by lawyers and economists but also by employers, employees and politicians. The relationship between the pension system and the fiscal system is important for every country since the standard of living but also the functioning of the labour market is strongly affected by the level of pension contributions.The paper presents the evaluation of the relationship between recent legal changes in and functioning of Open Pension Funds in Poland. The results of performed analysis show that the legal changes introduced in 2011-2014 lead to slow reversal of the capital part of the Polish pension system.
Highlights
In the past, the Polish pension system was based on a pay-as-you-go rule
For almost 15 years Poland belonged to the fastest growing pension markets in the world. This spectacular growth in the first decade of the second millennium was possible thanks to a steady and substantial inflow of contributions to Open Pension Funds and very a limited outflow of capital from the Polish pension market. This pattern was changed by decreasing contributions to OFE in 2011 and later reversed in 2014 by transferring 153 151,2 mln PLN from Open Pension Funds to the Social Security Institution
These three changes started to slow down the process of informal phasing of capital part of the Polish pension system, and that means a gradual reversal of the Polish pension reform (Bardzikowski, 2015)
Summary
The Polish pension system was based on a pay-as-you-go rule. In 1999 Poland introduced a major pension reform in order to improve sustainability of the pension system. For almost 15 years Poland belonged to the fastest growing pension markets in the world This spectacular growth in the first decade of the second millennium was possible thanks to a steady and substantial inflow of contributions to Open Pension Funds (hereinafter OPF) and very a limited outflow of capital from the Polish pension market. This pattern was changed by decreasing contributions to OFE in 2011 and later reversed in 2014 by transferring 153 151,2 mln PLN from Open Pension Funds to the Social Security Institution.
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