Pension Reform in Poland

From Assessment Financial Scheme to Reserve Financial Scheme

Abstract

Poland introduced a drastic pension reform in 1999, because the growth of the number of pensioners threatened the state budget. It's first characteristic is the adoption of reserve financial scheme in the Polish pension system. The second characteristic is the establishment of private financial companies, which manage the reserve fund of pension system. The third characteristic is the formation of independent pension union in each enterprise. Since the transformation of pension system into the reserve financial scheme is a quite difficult task, the younger generation has to participate in the old pension system partially as well as the new pension system.