Polish president signs pension reform bill

Polish President Bronislaw Komorowski has signed the bill reforming Polish private pension funds (OFEs) and sent it to the Constitutional Tribunal, according to local press on Friday. Prime Minister Donald Tusk announced changes to the OFE system on Sept. 4, under which the OFE funds' fixed income portfolio, 51.5 percent of all their net assets under management, will be moved to the national social insurer ZUS on Feb. 3, 2014. OFEs will also be banned from investing in Treasuries and Treasury-guaranteed fixed income securities, but will be freer to invest in equities and municipal and corporate bonds. The transfer of OFE funds to ZUS over a 10-year period ahead of a person's retirement is also planned. "Before signing the bill the president looked into various arguments. On the one hand, he had in mind a balanced budget which is a constitutional value, and on the other hand, constitutional arguments raised so often by lawyers," Presidential Minister Hubert Laszkiewicz said. He also said that, due to the varied opinions, the bill should be sent to the Constitutional Tribunal to check its constitutionality.