Situation on the market

In December 2013, the net assets of open-ended pension funds were at a level of PLN 299.3 bn and increased by 11.0% with respect to the end of the previous year. The following factors affected the rate of growth of the net asset value of the open-ended pension funds:

  • The increase in the level of premiums transferred by the Social Insurance Institution to the Open-Ended Pension Funds from 2.3% to 2.8% of the level of the pension insurance premium at the beginning of 2013.
  • Good financial results. The funds generated an average rate of return at a level of 7.2%.

The activities of the open-ended pension funds in 2013 were also affected by the changes made in the legal regulations. Apart from the statutory prohibition to conduct personal sales which was already in force in 2012, the principles of allocating new members to the Open-Ended Pension Funds from the people who, despite such an obligation, had not joined any fund, were changed in 2013. In accordance with the currently applicable regulations, only those funds which had rates of return that were higher in the last two settlement periods than the weighted average rate of return of all funds and which have net assets that do not exceed 10% of the total net assets of all funds take part in the allocation through a draw. The shares of the pool of people allocated are equal for all the funds satisfying these conditions. The Social Insurance Institution draws the allocation on the last working day of January and July of each year.

General pension companies are also included in the group of entities which are entitled to operate individual pension security accounts (IKZE). In 2013, there was not much interest in these accounts from future pensioners because of the excessively low incentives in the form of tax relief and the general lack of interest on the part of most Poles in pension savings. New, substantially simpler principles of calculating the limit of payments to the IKZE were introduced in a package of Acts of law on the pension system at the beginning of 2014, making them dependent on the personal income of the Savers, together with a lower flat-rate tax on payments from the IKZE at a level of 10%. With the simultaneous reduction in the activities of pillar II, these solutions can contribute to the increase in interest of Poles in saving for retirement in pillar III, including the IKZE.

Open-ended Pension Funds - share of net assets; balance as at 31 December 2013 (in %)