Changes in the Open Pension Funds are constitutional

Polish Constitutional Tribunal rendered on 4th of November 2015 one of the most important in its history  judgment in which found that provision of act on pensions and disability pensions paid from the Social Insurance Fund and act on social security system regarding the Open Pension Funds, amended by the act of 6th of December 2013 are constitutional.

Tribunal stated that abolition of the principle of the minimum rate of return profit from the Open Pension Funds and the warranty payments from the Treasury in the absence of rate of return profit are constitutional. The same applies to warrant to invest in shares, ban of the investments in bonds and primarily transferring money from the Open Pension Funds to the Social Insurance Fund. Partly unconstitutional is only advertising ban of the Open Pension Funds.

The issue of this Judgment of Polish Constitutional Tribunal is who owns the money accumulated on the Open Pension Funds. Thus, Tribunal held that the pension reform pertaining the transfer of a part of the funds from the Open Pension Funds to the Social Insurance Fund and amortization 51.5% of the assets of the Open Pension Funds is valid. The Polish state is not obliged to return about 150 billions of zlotys taken from the Open Pension Funds.

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