Open Pension Funds

Voluntary participation

• Persons insured in the statutory old age pension scheme.¹

General finances

• Fully funded personal pension plans based on contribution payments and capital revenues.

Contribution payments

• Earnings-related contribution (7.30% are divided as follows: 2.92% are placed in individual’s account at OFE and 4.38% are placed in individual’s account at ZUS).
• Contributions shared in parity between the insured person and the employer; the self-employed pay 100% of the contribution rate.

State support

• Not available.

• The ‘Open Pension Funds’ (Otwarte Fundusze Emerytalne, OFE) manage the resources.
• The ‘Social Insurance Institution’ (Zakład Ubezpieczeń Społecznych, ZUS) pays benefits directly to the eligible person.

• Based on reaching the standard retirement age of the statutory old age pension scheme (60 years for women and 65 for men).

Pension payments

• Defined contribution (based on the collected contributions).
• Life-long monthly annuity.
• Paid by ZUS together with the benefit from the statutory old age pension scheme.
• Benefits are unconditional.

Taxation and social security contributions

• Pension benefits are subject to income tax.
• Mandatory contributions for health insurance.