Is it worth abandoning OFE? The rate of return and the risk of the capital part of the pension system in Poland in 1999-2013
Is it worth abandoning OFE? The rate of return and the risk of the capital part of the pension system in Poland in 1999-2013

Summary/Abstract: Open Pension Funds (OFE) are one of the three pillars of the Polish pension system chich was reformed in 1999. Monthly dues collected from the remuneration are to be the capital invested by the Fund, mostly in Treasury bonds and shares listed on the Warsaw Stock Exchange. The functioning of the funds on the capital market can be associated with both the probability of short-term decline in the value of contributions, as well as a long-term rise in value. Since 2014, OFE have become an unsolicited instrument. Everyone who works and makes contributions can decide whether they want to use the services of the fund. Changes in the OFE system have raised a number of questions and created controversy over the future of the capital pension pillar in Poland. The main objective of this study is to verify the differences in rates of return created by OFE and attempt to estimate the risks to the capital part of the pension system in Poland. In line with the aforementioned objective, the hypothesis of this paper states that from the point of view of a client, the choice of an open pension fund is irrelevant as far as profitability. The hypotheses were verified through the use of linear correlation analysis, linear regression, ANOVA and tests for normality distribution of OFE return rates. The scope of the research covers the period of 2000-2013.

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