Poland’s private pension funds recorded an over-all loss in 2011, that averaged 4.8%. This means that future pensioners, whom are required to pay into these funds, have seen around 5bn złoty wiped off their future pensions. This is the second year in their 12 year history that these private funds have registered a loss, falling by 14% in 2008.
Despite the fact that the future pensions of Polish citizens has reduced throughout the year, the general Polish Pension Association (PTE), that administers the funds, saw its profits grow. In the first quarter of 2011 alone, the PTE enjoyed a profit of 438m złoty. Also the salaries of those working for the PTE grew from 80m złoty in the third quarter of 2011, up from 72m zł in the corresponding period of 2010.
As the publicist Piotr Szumlewicz has noted: ‘Estimates show that in 20-30 years time pensioners in Poland (particularly women) will receive miserly pensions. The pension reform, begun in 1999, has led to lower pensions, rising public debt, a rejection of the principle of inter-generational solidarity, whilst also bringing huge profits to the companies running these funds. In such a situation the government should abolish the compulsory private pension funds as quickly as possible and return to the previous pension system that was more stable, secure and just.’