Poland will allow a full array of investment policies with few outright restrictions for its new employer sponsored pension plans, provided risk measures vary for lifecycle funds within the program, the head of the Polish investment vehicle PFR Pawel Borys told PAP.
On 15 February 2018 the Ministry of Finance showed the bill of PPK pension funds act.
The terms of the legislation only require managers to invest „with particular care for the interests of participants, abiding by the rules of limiting investment risk as defined in the law on investment funds” and that individual lifecycle funds „take into account the need to limit investment risk levels depending on participant age.”
Funds have a 30% of Assets under management (AuM) cap on foreign investments, according to the bill.
Poland has crafted plans for employer-sponsored pension savings plans into which employees would put a minimum of 2% of wages, employers would put a minimum of 1.5% and the state would add nominal bonuses.
Fund managers will pay up to 0.1% of AuM in annual fees to the state investment vehicle PFR and up to PLN 1 mln in an entry fee for participation in Poland’s pending employer-sponsored pension system, draft legislation for the program shows.
Investment fund houses with at least 3-years experience in investment funds management, at least PLN 10 mln capital and at least four lifecycle funds under management will qualify to manage the new PPK funds.
Savers, who can opt out of the system altogether should they choose, will also have the right to shift their investment allocation away from the natural profile for their age group, the legislation shows.
Poland’s top insurer PZU „has ambition to be the market leader” when it comes to the PPK employer-sponsored pension saving plans, regardless of the final shape of the program, CEO of PZU’s life unit PZU Zycie, Roman Palac, told PAP.
