Comments on the grounds of changes to the pension scheme provided by the government on Jan. 24, 2010, together with an alternative proposal to change the amount of contributions to pension funds - a summary

Tags: system_projects, macroeconomics, labour_market, publications_from_2011

Publication date: 14.03.2011

This document presents a summary of the analysis conducted by IBS in the work team for the social problem of the Trilateral Commission, devoted to proposals for changes to government pension scheme, presented in the government's support of 24/01/2011. We show that the macroeconomic assumptions adopted by the government are very optimistic, comparing the effect on the amount of pensions and replacement rates of different variants of changes in the pension system - to maintain the current level of contributions to pension funds and the permanent and transient its reduction,as well as two options for gradually raising the investment limit in the OPF shares. We present how these changes affect people of different socio-demographic groups (distinguished by gender and education). We also suggest a variant of an indirect change in the pension system - reducing contributions in 2011-2014 as proposed by the government and determine contributions to pension funds at 5 percent since 2015 - which, by reducing the borrowing needs of the state for the transfer of contributions to pension funds, allows to increase pensions and replacement rates in relation to the status quo and the proposal of the government.

Summary in Polish.

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