Leokadia Oręziak: Private pension funds in Poland – the risk goes to the pensioner
In mid-2013 the Polish Prime Minister, Donald Tusk, announced plans for reform of the country’s pension system. Private pension funds will no longer be allowed to buy governmental bonds, which led to the growth in the levels of public debt. The bonds they acquired earlier will be put back to the public pension system. The obligation to have a private pension fund, which was the second pillar of the pension system, will be lifted, and people will be able to shift their savings to the public insurance company. This reform has sparked much controversy and was fiercely opposed by neo-liberal economists and think-tanks. Professor Leokadia Oręziak rebuffs these criticisms and shows the devastating effects that the partial privatisation of the pensions system had on public debt in Poland.