OFE pension funds with over PLN 1 bln transferred to Poland's social insurer ZUS in July
Private pension funds OFE have transferred PLN 1.03 billion (EUR 242.1 mln) to Poland's social insurer ZUS as part of the so-called 'safety slider', ZUS press office told PAP Biznes.
This is the second ever transfer to ZUS above PLN 1 billion (EUR 235 mln).
The aforementioned transfer is for June and was made in July.
In June, OFE received PLN 363.2 million (EUR 85.4 mln) from ZUS.
According to the December 2013 amendment to the Act on Pension Funds, for 10 years before reaching retirement age, funds accumulated by the insured in OFEs will be gradually transferred to the FUS pension fund and recorded on a sub-account kept by ZUS.
This is the so-called safety slide, which is intended to ensure the safety and protection of the value of funds accumulated in OFE private pension funds in the event of a collapse of the financial markets immediately before reaching retirement age.
In such a case, there would be a reduction in capital and a lower benefit.
Under the safety slider, OFE will gradually redeem part of the settlement units of such persons, and transfer funds to the ZUS account corresponding to the value of these units in a given month.
Once all the funds have been transferred to ZUS and the insured person reaches retirement age, their OFE membership will cease.
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