Tag: pension system
The number of children and youth is for the first time the same as the number of pensioners in Poland. Both groups were 7 million strong in December 2013, according the preliminary reports of Poland’s Central Statistics Agency. This was also the first year in which the Polish government withdrew more from the its Demographic Reserve Fund (FRD), created as a reserve in case of problems with future pension payments, than it paid into the fund from gains from privatization. The fund is dwindling.
The reform of the pension system will only decrease the cost of debt servicing and the cost of refunding contributions – a total of PLN 9 billion. The government will not spend any more, as it pursues fiscal consolidation within the excessive deficit procedure - says Dariusz Rosati, Chairman of the Public Finance Committee of the Sejm.
The programme extending the paid parent leave is to cost taxpayers PLN 2 billion. If all eligible parents were to participate, the figure should amount to as much as PLN 5.2 billion. However, already while drafting the programme, the government assumed that some of them will not be able and others will not want to participate. The estimates show that the amount of PLN 2 billion is also a waste, since it will not increase the number of children born.
When adopting last year the act reducing the level of the contribution transferred to Open Pension Funds (OFEs), the government promised another amendment. It was designed to force an increase in competition between the funds, improve their efficiency and reduce management costs. The government failed to keep its promise. This may prove that OFEs are already treated as a temporary solution.