Poland finalises abolition of €38bn second-pillar system

first_imgThose members who actively choose the ZUS route will be spared the conversion tax but payouts on retirement will be subject to personal income tax – currently a basic rate of 18% and a marginal rate of 32%.According to the government, OFE assets total PLN162bn (€38bn), including PLN126.9bn of assets listed on the Warsaw Stock Exchange and PLN10.8bn of foreign-listed stock.The OFEs’ heavy equity weighting, introduced in 2014 by the previous government when it stripped the portfolios of sovereign bonds, has led to highly volatile returns.Under the new regime, the 85% equity limit will be gradually reduced in order to introduce more stability into the system.Evolution of the second pillar reform Polish second-pillar funds have roughly €38bn in assets between themPrime minister Mateusz Morawiecki’s original plan in 2016 envisaged only one option, with 75% of OFE assets transferred to IKEs, and the remainder to the Demographic Reserve Fund, a ZUS-administered state buffer fund for pension shortfalls.He subsequently switched the third-pillar destination from the IKE to tax-exempt individual pension insurance accounts, but has now reverted to his original plan.Some other features remain essentially unchanged, including the legal transformation of the OFEs themselves into open investment funds, and that of the pension fund management companies into investment fund companies.The slider concept, which incrementally moves part of an individual’s OFE account into ZUS when they are within 10 years of retirement, will also disappear as part of the reforms.According to the Polish brokerage Trigon, slider outflows from the OFEs in the first three months of 2019 totalled PLN1.8bn, against inflows from existing contributors of PLN786m.The new system is set to go out to consultation in May, followed by government and parliamentary legal work. The government expects the law to pass through both houses of parliament with president Andrzej Duda scheduled to sign it off in September or October, for implementation in January 2020.General elections set for this October are unlikely to cause any major upsets as recent opinion polls put the ruling Law and Justice party well ahead of its opponents. Poland’s prime minister has finally announced the details of the liquidation of the country’s second-pillar funds (OFEs), ending years of speculation since the government first announced plans to dismantle the system in 2016.According to a government statement yesterday, the 15.8m OFE members will have the choice of either transferring their entire funds into newly created third-pillar individual retirement accounts (IKEs) or the first-pillar Polish Social Insurance Institution (ZUS), with different tax implications.In the first instance, the default option, members will pay ZUS a ‘conversion’ tax of 15% of asset value, spread over two years, but subsequent payouts, either as a lump sum or in instalments, will be tax exempt.Account holders will only be able to access their funds upon reaching retirement. Also, unlike ZUS accounts, funds accumulated in IKEs are deemed private and inheritable.last_img read more

Hosting new season entirely in Kolkata in I-League’s plans

first_imgKOLKATA: The entire season of the I-League is likely to be held in Kolkata keeping in mind the COVID-19 pandemic situation in the country, sources have said.”This is one of the plans that we are working on. Nothing’s confirmed yet,” a top source close to the development told IANS on Sunday. The country’s top-tier competition, the Indian Super League (ISL), is also likely to be held in one city with Goa emerging as the favourite to host the tournament behind closed-doors. While it is too early to say whether the I-League, which is expected to start in the last week of November, will be held behind closed-doors or not as per sources, there are indications that it could go that way, considering the health situation in the country amid the COVID-19 pandemic. However, it has also been learnt that the Salt Lake Stadium in Kolkata will not be used since it is locked for the FIFA U-17 Women’s World Cup. The ISL will be held with players staying inside the bio-secure bubble to eradicate the threat of COVID-19 and the I-League is also slated to follow that. The 2019-20 I-League second division could not be completed due to the pandemic in March so the line-up for the 2020-21 I-League season is yet to be decided. IANSAlso watch: Get Set Global: How are People in The UK Facing Financial Crisis & Morelast_img read more

Premier League team of the weekend: Do you agree with this XI?

first_img Goalkeeper – Tim Howard (Everton) – Click the right arrow to see who else makes our team of the weekend… – The veteran American shot-stopper drew criticism for his performance in the 2-0 defeat against Manchester City earlier this month. But he was back on top form against Spurs as impressive stops from Harry Kane, Ryan Mason and Toby Alderweireld at White Hart Lane earned Everton a valuable point. 11 It was another thrilling weekend of action in the Premier League.Crystal Palace, West Ham and Swansea picked up impressive wins, while Manchester City continued their faultless start to the season by comfortably dispatching new boys Watford.But which top-flight stars shone brightest? Click through our gallery to see talkSPORT’s team of the weekend… 11 11 11 Defender – Joel Ward (Crystal Palace) – Click the right arrow to see who else makes our team of the weekend… – The 25-year-old was one of Crystal Palace’s standout performers as the Eagles stunned Chelsea to claim a first win at Stamford Bridge since 1982. Not only did Ward keep Eden Hazard quiet, but he wasn’t afraid to get forward himself and capped an excellent individual – and team – display with the winning goal ten minutes from time. 11 Forward – Raheem Sterling (Manchester City) – Click the right arrow to see who else makes our team of the weekend… – Eyebrows were raised at the £49m fee City paid to lure Sterling away from Liverpool in the close season. But there’s no doubting the 20-year-old’s quality and he already appears to have made a big difference to Manuel Pellegrini’s side. Watford were unable to cope with his pace and trickery on Saturday as the England ace grabbed the first of what is sure to be many goals for City. Midfielder – Manuel Lanzini (West Ham) – Click the right arrow to see who else makes our team of the weekend… – Lanzini was likened to David Silva by Hammers boss Slaven Bilic when he arrived on loan from Al Jazira earlier this summer – and he certainly lived up to the comparisons with the Manchester City superstar at Anfield. The diminutive attacking midfielder scored the opening goal in the 3-0 win and didn’t give the Liverpool defence a minute’s peace with an outstanding high-energy display. Defender – Damien Delaney (Crystal Palace) – Click the right arrow to see who else makes our team of the weekend… – It’s not often defenders come out on top against Chelsea’s battering ram of a forward Diego Costa but Delaney did just that on Saturday. The 34-year-old was outstanding – along with the rest of the Palace defence – as he used all his experience to shackle and frustrate the fiery Spaniard. Defender – Ashley Williams (Swansea City) – Click the right arrow to see who else makes our team of the weekend… – The Welshman has been one of the Premier League’s most consistent defenders in recent seasons and was influential as Swansea claimed a 2-1 victory over Manchester United on Sunday. He played a key role in his side’s equalising goal before denying Wayne Rooney a late leveller with a brilliantly timed challenge. Midfielder – Dusan Tadic (Southampton) – Click the right arrow to see who else makes our team of the weekend… – Southampton have lost a host of top talents in recent seasons and could soon have a battle on their hands to keep hold of Tadic. The Serbian has started this season impressively and netted twice against Norwich on Sunday to help the Saints secure a first win of the campaign. 11 Midfielder – Fernandinho (Manchester City) – Click the right arrow to see who else makes our team of the weekend… – The underrated Brazilian midfielder has arguably been City’s player of the season so far. He was certainly the pick of their central midfielders in Saturday’s 2-0 win against Watford – capping an impressive, energetic performance with a terrific strike, just like he did against Chelsea earlier this month. 11 11 11 Midfielder – Yannick Bolasie (Crystal Palace) – Click the right arrow to see who else makes our team of the weekend… – Granted compassionate leave last week after the loss of his father, Bolasie returned to Alan Pardew’s squad to face Chelsea and made a sensational impact. Brought on for Wilfried Zaha ten minutes into the second half, the Congo winger tormented Branislav Ivanovic and played a key role in both of Palace’s goals in their stunning win. Forward – Andre Ayew (Swansea City) – Click the right arrow to see who else makes our team of the weekend… – The Ghanaian is proving to be one of the signings of the summer. A free transfer from Marseille, Ayew netted his third Premier League goal of the season to draw his side level against Manchester United on Sunday before setting up Bafétimbi Gomis with an exquisite pass to fire Swansea to victory. Defender – Aaron Cresswell (West Ham) – Click the right arrow to see who else makes our team of the weekend… – The former Ipswich full-back has been a revelation for West Ham since his move to Upton Park in 2014. Solid in defence and comfortable in possession, Cresswell played his part at both ends against Liverpool as the Hammers triumphed at Anfield for the first time in more than 50 years. 11 11last_img read more