Rewrite · Extraordinary measures
Nationalisation or transfer of private pension assets to the state
- What it is
- Closing or shrinking funded private pension pillars and moving the accumulated assets (largely government bonds) to the state pay-as-you-go system or a state fund.
- Why it counts
- The state captures a large stock of household savings, cancels its own bonds held by the funds or gains a captive buyer, and replaces property rights with unfunded pension promises.
When it was in force
- Argentina: 2008, historical
- Poland: 2014, historical
2 examples
Argentina
2008HistoricalEliminated the funded AFJP capitalisation regime and absorbed it, with its assets, into the state pay-as-you-go system (SIPA).
Argentina today: index 40.1Ley 26.425 (Sistema Integrado Previsional Argentino)Primary source
“En consecuencia, elimínase el actual régimen de capitalización, que será absorbido y sustituido por el régimen de reparto, en las condiciones de la presente ley.”
Poland
2014HistoricalOn 3 February 2014 the open pension funds (OFE) had to cancel 51.5% of every member's units and hand the corresponding assets, starting with Treasury bonds, to the state social insurance institution ZUS.
Poland today: index 32.3Ustawa z dnia 6 grudnia 2013 r. (Dz.U. 2013 poz. 1717), OFE reformPrimary source
“W dniu 3 lutego 2014 r. otwarty fundusz emerytalny umarza 51,5% jednostek rozrachunkowych zapisanych na rachunku każdego członka otwartego funduszu emerytalnego”
Examples and their dates reviewed .