WARSAW--Poland will transfer to the state administration all sovereign bonds held by private pension funds that are the mandatory element of the country's pension system, the country's prime minister and finance minister said Wednesday.
The move will take away 51.5% of assets the private fund companies currently hold and reduce their role in the system. The pension funds will hold on to 48.5% of their current assets, mostly stocks of companies listed on the Warsaw Stock Exchange.
Participation in the private element of the system will become voluntary, said Prime Minister Donald Tusk. The private funds will get 2.92% of gross wages of any participants who will opt to include the private element in their pension program, Finance Minister Jacek Rostowski told reporters.
The government will deregulate investment policies for private funds, giving them more ability to invest in stocks, Mr. Rostowski said.
Mr. Tusk said the overhaul aims to reduce the pace of growth of Poland's public debt, at 55.6% of gross domestic product at the end of last year.
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