Poland announces new contribution plan for pensions

August 28, 2018 - 6:34 am

WARSAW, Poland (AP) — Poland's government has announced a program of voluntary retirement funds that is intended to encourage its aging society to make savings and protect low-earners from post-retirement poverty.

Under the program, employees, employers and the government will regularly contribute small amounts into employees' individual accounts.

The program is the latest element in a social benefits policy that has earned the right-wing government and the ruling Law and Justice party significant support among low-earners.

Prime Minister Mateusz Morawiecki said Tuesday the program is intended to increase Poles' financial security. It will add to what they will receive from the state-run retirement system, which is threatened by a growing number of retirees and the shrinking number of professionally active people.

Approval is still needed by the parliament and the president.