Poland will allow pension fund managers and life insurers to run employer-sponsored pension schemes PPK, according to a new draft bill on PPKs outlined over on Saturday by development fund PFR head Pawel Borys.
The bill assumes that minimum employee contributions for lowest earners will be reduced to 0.5% of the wage base rather than 2% to encourage lowest earners to save.
The bill also assume increasing equity requirement for PPK managers to PLN 25 mln from previously assumed PLN 10 mln. On the other hand, the bill lowers the cap on fees passed by PPK managers to PFR.
The bill introduces only broad limits on investments, as, according to Borys, the intention was not to „overregulate” the sector.
The limits on equity allocation will depend on the age of a pension saver. Up to 10% of funds will be allowed to be invested in alternative investments (venture capital, private equity, short sale) and up to 30% might be invested abroad.
