Non-state Pension Funds in Poland

Before you read

Discuss the question

What is the pension scheme of Ukraine?

Now read the text

Poland has recently discussed world pension schemes of Chile and Western European countries choosing an appropriate model to follow. Now we are also interested in the experience of our neighbours hoping to learn from somebody’s mistakes.

The advantage of the new pension scheme in Poland is the fact that everyone will receive the pension depending on how he/she worked and how much he/she earned.

The modern pension scheme of Poland has three components, the so-called filars. Translated from Polish the word “filar” literally means “column” and in the figurative meaning – “pier, support”. This name is rather figurative: it is easy to imagine three columns supporting the welfare of a Polish pensioner.

The first two filars are the state part, reformed legendary Polish ZUS – a social security establishment (hereafter – SSE) and non-state pension funds. They require practically all citizens to compulsorily participate in them. Participation in the third filar – pension schemes for employees – is of a voluntary character and will further give the pensioner a possibility not only to exist on a subsistence level but also not to deny those pleasures he/she is accustomed to during running working activities.

We will speak about the second filar of the pension scheme of Poland – non-state pension funds. The participation of all the citizens born before 1 January 1949 (those aged above 50 at the moment of the reform) in the filar is considered inexpedient. Person born between 31December 1948 and 1 January 1969 had an option: either to make contributions only to SSE or to divide the amount between SSE and a non-state pension fund.

At the same time those, who were born after 31 December 1968 and started their labour activity, were to decide within seven days, which non-state pension fund to enter. For those, who did not make the decision in time, a social insurance establishment reminds about it and in 30 days decides their participation in a certain fund via a lottery.

In 2000 approximately 350.000 of Poles (it is this number of Poles that started their work) sled themselves: which pension fund to choose? Specialists advise to utilize the services of one of the biggest funds.

There are two types of funds: the open pension fund founded and managed by any partnership and pension fund for employees founded and managed by the employees’ partnership.

Every partnership may found and manage only one fund except for cases when management of more than one fund is the result of starting to manage another fund, merger or acquisition of partnerships.

Joint stock company’s capital may not be collected through open subscription. Neither loans nor credits may be the source registration.

Partnerships’ share capital is paid for only through cash contributions and should be fully paid for before the partnership’s registration.

Membership in the open pension fund is available for everyone who submitted the application and fulfilled the requirements indicated in the Law. A person may be the member of only one open fund.

The member of the pension fund for employees may become a natural person fulfilling the requirements indicated in the Law “On Pension Schemes for Employees.”

Reading tasks

A. Understanding main points. Answer these questions:

1. What is the advantage of the new pension scheme of Poland?

2. What are the filars of the pension scheme of Poland?

3. In which filar can people participate voluntary?

4. What types of funds are there in Poland?

5. How is partnership’s share capital paid?

6. For whom is membership in the open pension fund available?

B. Understanding details. Mark these statements T (true) or F (false) according to the information in the text:

1. The pension scheme of Poland has two components.

2. Polish ZUS is a social security establishment.

3. It is obligatory for citizens to participate in the first two filars.

4. Due to the first two filars pensioners can exist on a subsistence level.

5. All people had an option of either SSE or a non-state pension fund.

6. Only one fund may be founded by every partnership.

7. To become a member of the open pension fund, a person must submit the application and fulfill the requirements.

Vocabulary tasks

A. Match the words in column A to the words in column B as they occur in the text:

B. Match the opposites:

Date: 2016-04-22; view: 970