Pension funds markets (PTE PZU)

Market situation

At the end of 2016, the net assets of open pension funds were at the level of PLN 153 billion and grew by 9.2% with respect to the end of the previous year.

Activities of PTE PZU

The OFE PZU Złota Jesień (Open Pension Fund, OPF), which is managed by PTE PZU, is one of the largest players on the pension funds market in Poland. At the end of 2016, OFE PZU was the third largest pension fund, both in terms of the number of members, as well as in terms of net asset value:

  • Fund had 2,188.1 thousand members, i.e. 13.3% of all participants of open pension funds;
  • net assets were at the level of PLN 20 billion, or, in other words, they represented 13.0% of the total value of assets of the open pension funds operating in Poland.

In 2016, the Social Insurance Institution (ZUS) transferred PLN 300 million in premiums to OFE PZU, which was 1.5% more than in the previous year.

In 2016, the Social Insurance Institution (ZUS) transferred PLN 300 million in premiums to OFE PZU, which was 1.5% more than in the previous year.

At the end of 2016, Dobrowolny Fundusz Emerytalny PZU (PZU Non-compulsory Pension Fund) held 56.9 thousand IKZE accounts, which accounted to assets worth PLN 26 million. As a result, it maintained its position as one of the leaders in the non-compulsory pension funds segment. The 2016 rate of return was 16.2%.

Open Pension Funds - share in net assets as at 31.12.2016 (in %)

Source: PFSA, monthly data on the OFe market, data for December 2016

Factors, including risks and dangers, which will impact the activities of pension funds in 2017

The main challenges for the pension funds market in 2017 are:

  • business climate on the capital market and, in particular, on the WSE, affecting the value of the assets of open pension funds and the level of management fees collected by PTEs;
  • reform of pension system in Poland and results of the statutory review of the pension system, as well as legal risks related to these matters, especially the assumed transfer of 75% of the funds from OPF to newly-created IKE and 25% of funds from OPF to the Demographic Reserve Fund;
  • pension funds preparing for organizational and legal changes resulting from the transformation of open pension funds into investment funds composed of Polish shares and pension funds into investment funds;
  • possibilities arising due to the realization of the assumptions determined in the Plan of Capital and Strategy Building for Responsible Development, whose performance will depend on developing detailed solutions and indispensable legislative changes coming into effect;
  • active participation in the works for the implementation of solutions improving the effectivity of operations of pillar III and increasing its attractiveness, as well as shaping social awareness in terms of the needs related to making additional savings for future pensions.
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