Poland debates controversial pension reform

Updated at: 10/11/2013 5:35 AM

(AP) WARSAW, Poland - Poland’s government has opened a debate on a controversial plan to transfer part of pension savings from private funds to a state account.

Under the plan announced late Thursday and to be debated Friday, private pension funds would have to transfer their government bonds to a state account, but would be allowed to keep stock. Every Pole will have to decide whether to stick with only the state fund or have a private one, too.

Prime Minister Donald Tusk’s government argues private funds weigh pension investments too heavily toward shares and might result in low pensions, due to the impact of the global financial crisis.

Critics of the plan, however, say the government wants the private pension savings on its books so it can close an unexpected deficit shortage.

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