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Privatisation revenue for future pensions
2008-07-04
Following the partial privatisation of the social security system it Poland, 40% of income from privatization is to be obligatorily allocated to the Demographic Reserve Fund (DRF) – “Gazeta Prawna” informs.
REKLAMA

According to the newspaper DRFs will operate on the basis of legislation prepared by the Ministry of Labour. The reserve fund is set up to support the traditional scheme and secure future pensions.
DRF was established in 1999. Initially it was supposed to obtain revenue from pension fund surpluses, partly from pension premiums and revenues from privatization. According “Gazeta Prawna” DRFs have received about PLN 4 billion against the expected PLN 30 billion.
The money collected by the fund can be allocated for only one aim – supplementing the shortage of pension funds as Polish society ages.

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