WARSAW, Poland – Poland’s lawmakers have narrowly approved a controversial reform to the country’s pension system that transfers some of the savings from private funds to the state.
Under the plan that is to take effect in February, private pension funds will have to transfer their government bond holdings — equivalent to some 55 per cent of their assets — to a state-guaranteed account, called ZUS.
Prime Minister Donald Tusk argues the money will be safer in ZUS, but critics say the plan is primarily designed to make the public accounts look better.
After a stormy debate, the lower house voted 232-216 in favour of the change Friday with one abstention.
