Competition and Performance in the Polish Second Pillar
This paper provides an assessment of the Polish funded pension system and the quality of the regulatory framework for the accumulation phase. There are two elements that distinguish the Polish pension fund portfolios from other reforming countries&...
| Main Authors: | , |
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| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/01/8100215/competition-performance-polish-second-pillar http://hdl.handle.net/10986/6775 |
| Summary: | This paper provides an assessment of the
Polish funded pension system and the quality of the
regulatory framework for the accumulation phase. There are
two elements that distinguish the Polish pension fund
portfolios from other reforming countries': the
relatively high component of domestic equity, and the
negligible component on international securities. Although
this asset allocation has provided relatively high real
rates of return in the past, it may not be the case in the
future, as further portfolio diversification to other
instruments will become necessary to ensure sustainable
rates of return. The paper provides a number of
recommendations to expand the opportunities of investments
to pension funds. The paper finds that pension fund
management companies have been able to exploit scale
economies in certain areas of the business, such as
collection of revenues, and proposes to study mechanisms to
enhance them even more by centralizing also the account
management system, which may also help to increase portfolio
efficiency and competition. The paper suggests that, with
the payout phase starting in 2009, broad definitions in
areas such as the role of the public and private sector need
to be established. The paper examines products and options
that authorities may consider for the design of the payout phase. |
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