Pension Fund Societies: Which to Choose?
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The new social insurance system to become operational in
January is to rest on three tiers and the amount of retirement
pension is to depend on three elements. The first will be a
reformed ZUS (i.e. Polish Social Insurance Institution), which will collect
contributions equal to 36
percent of an employee's income.
The second element will be pension fund societies (PTEs)
which will collect nine percent of an employee's wage. The money
will be invested in bonds and stocks and the firms operating the
funds will be backed by state guarantees. The employee will
follow the performance of his fund and will be free to move to
another organisation if he is unhappy with it. Under the
relevant regulations the PTEs will be authorised to invest up to
forty percent of their money in the stocks.
The third tier will be private pension plans an employee
or his employer will purchase from an insurance firm. This
option is already available, with over thirty firms expected to
operate in this area by the end of this year.
People over 50 will get their pensions under the old
principles, those in the 30-50 age bracket may opt for the old
or the new system and those under 30 must join the new scheme,
which means selecting a pension fund society to invest their
money. By recent estimates, the proportion of those in the
middle bracket who decide to accept the new system will range
from 90 percent in the 31-35 years bracket to 20 percent in the
45-50 years age group.
The PTEs will begin their promotion campaigns on
February 16 and as of next March they will accept clients, to
become operational in April. Twenty such pension fund societies
have applied for registration so far. A recent issue of Puls
Biznesu had a special supplement presenting each of them in
detail.
Krajowe PTE Razem
The number one share-holder in the Krajowe PTE Razem
(KPTE) is Dutch TBI Holding NV which owns 84 percent of the
stock, followed by the OPZZ All-Poland Trades Union Alliance,
KIG National Economic Chamber and the Multico company (5 percent
each) and the KIU National Insurance Institute (1 percent). In
all, the KPTE capital totals at present Zl 36 million. The
society hopes to benefit from the involvement of the OPZZ, the
biggest trade union federation in Poland, which should promote
the society among its members and of the KIG which should seek
clients among the businessmen grouped in economic chambers. The
PTE expects to have from 500,000 to 700,000 clients in the
future. Under earlier agreements, the share of these OPZZ and
KIG in the KPTE stock should grow with time. The TBI Holding,
which contributed most capital to the society, will share with
the Polish partners its experience in the management of assets
and organisation of an efficient pension fund society. The KPTE
depository will be Citibank.
Pawel Olbrych, a 34 year old graduate of Warsaw
University Law Department, is the KPTE president. His earlier
professional experience includes two years in the Foreign
Ministry International Affairs Institute, six years with Iveco
Fiat in Turin, two years as marketing and distribution director
in the TFP Przymierze trustee fund. His latest appointment was
that of vice-president of the TFI Bank Handlowy investment fund.
PTE Skarbiec-Emerytura
The two shareholders in the PTE Skarbiec-Emerytura are
Bank Rozwoju Eksportu, which holds 75 percent of the society's
stock, and Sopockie Towarzystwo Ubezpieczeniowe Hestia Ins. (25
percent). This PTE intends to relay on the well developed
distribution network operated by its shareholders (Hestia: 40
departments and 1,200 insurance agents; BRE 21 departments and
branches). The PTE Skarbiec-Emerytura capital totals PLN 20
million at present but it is to grow manyfold in the coming
months to reach Zl 140 million next April. The society expects
to provide services to 400,000-600,000 clients. As the BRE
will at the same time act as the society's transfers agent, its
operation costs will be lower than in some other PTEs. In
addition, both shareholders have a strong position on the Polish
financial market with the BRE's own assets totalling over Zl 1.2
billion and its 1997 net profit having reached Zl 146.3 million.
The PTE Skarbiec Emerytura will draw on the experience of the
TFI Skarbiec investment fund belonging to the BRE group.
Krzysztof Telega, 37, who has held managerial positions
in the BRE since 1991, is the society's president. He is a
graduate of the Warsaw School of Economics Foreign Trade
Department. His earlier experience includes two years with the
PHZ Polservice foreign trade company.
PTE Zurich Solidarni
The PTE Zurich Solidarni pension fund society has two
share-holders, namely the Zurich Insurance Company (51 percent)
and the NSZZ Solidarity trade union (49 percent) represented in
the PTE by the Zurich Solidarni and the Zurich Solidarni Polska
companies. Its capital totals Zl 140 million. It has plans to
win around a million clients, mainly from the Solidarity union
circles. The society has chosen Citibank for its depository. It
has not yet elected its president.
The head of the supervisory council is Miroslaw
Kowalski, a graduate of the Lomonosov University in Moscow,
whose to-date professional experience includes positions with
Mutual of Omaha Toronto, CU TU na Zycie and the Zurich Handlowy
Towarzystwo Ubezpieczen and Towarzystwo Ubezpieczen na Zycie
insurance companies.
AIG Powszechne Towarzystwo Emerytalne
The capital of the American International Group PTE
amounts at present to Zl16.4 million with the stock divided
between Amplico Life and the American Life Insurance Company
Alico (50 percent each). The AIG PTE has made no declarations
regarding the number of clients it hopes to win. Drawing on the
experience of the AIG, which operates on 130 markets and has
played an important role in reforming the insurance system in
South American countries, it plans to pursue a conservative and
cautious policy in Poland.
The AIG PTE president is Tomasz Frontczak, a 40 year old
graduate of the Warsaw School of Economics Foreign Trade
Department. He had been advisor to the Agros Holding general
director and held managerial positions in Pepsico and Kraft
Jacobs Suchard Poland companies.
Powszechne Towarzystwo Emerytalne Allianz
Towarzystwo Ubezpieczeniowe Allianz Polska holds 100
percent of the PTE Allianz whose capital at present amounts to
Zl41.46 million and is supposed to grow to Zl 65 million during
the first quarter of 1999. The depository of this PTE will be
Deutsche Bank Polska. Apart from offering its services through
the TU Allianz and TU Allianz Zycie insurance company network,
the society plans to reach clients by means by some new
distribution channels, which it has refused to reveal however,
and eventually win up to one million clients.
Professor Witold Kozinski, the PTE Allianz president, is
one of the best known figures in Poland's banking circles. Until
recently he was the National Bank of Poland NBP first
vice-president in charge of the bank's financial policy. An
author of many publications, he heads the Banking and Finance
Institute at Warsaw University Economics Department.
Commercial Union PTE BPH CU WBK
The major shareholder in the Commercial Union PTE BPH CU
WBK pension fund society is Commercial Union TU na Zycie which
holds 80 percent of the stock. The remaining 20 percent is
divided between the WBK and BPH (ten percent each). The
society's capital totals Zl 125 million at present and the
number of clients is expected to range from 600,000 to 1
million. Its distribution network is to rely on the network
created by Commercial Union which at present has around 8,000
agents in Poland and on the 400 bank branches and outlets
operated by the BPH and WBK bank. The society's transfers agent
will be CU Financial Services and its depository is Bank Rozwoju
Eksportu.
The society's president Zygmunt Kostkiewicz, a graduate
of Warsaw University History Department, completed Ecole
Nationale d'Assurances in Paris. He had professional training at
French MACIF company and Centre de Gestion in Lens and held
responsible positions with a number of Polish insurance
companies, including Polisa and with the Polish Life Insurance
Chamber. From the beginning of this year he has been member of
the PAP Polish Press Agency supervisory board.
Powszechne Towarzystwo Emerytalne Dom
The PTE Dom stock is divided in equal proportions
between TUiR Warta and Citibank. The society's capital, which
initially amounted to Zl 20 million is to be raised to Zl 140
million in January. The society expects to attract from 500,000
to 600,000 clients. The Warta insurance company, which holds a
strong position on the Polish insurance market, has chosen
Citibank for its partner hoping to benefit from the latter's
experience in South America where it manages pension funds in
seven countries. The depository of this fund will be bank Pekao SA.
The society's president Marek Jandzinski, 46, is a
graduate of the Warsaw University Management Department. His
professional experience includes managerial positions with the
Polish Distributors Federation, Procter & Gamble and Nestle
Polska. His latest position was that of the Kotlin company
president.
Powszechne Towarzystwo Emerytalne Epoka
The Epoka pension fund society has ten shareholders
including the BOS Bank Ochrony Srodowiska (38 percent),
Elektrownia Kozienice, Elektrownia Belchatow and Elektrownia
Turow power stations, Stocznia Szczecinska shipyard and BGK Bank
Gospodarstwa Krajowego (10 percent each) and the KGHM Polska
Miedz, Energo Invest Broker and Mentor companies (4 percent
each). This is one of the few societies which do not have a
foreign shareholder. Its capital totals at present Zl 40
million. According to its present estimates, the society will
have around 500,000-600,000 clients. Its depository will be Bank
Pekao SA.
Boguslaw Fraczek, the society's president is a graduate
of the Warsaw School of Economics Finance and Statistics
Department and of the Institute for Advanced Studies in Vienna.
He holds a PhD in economics. His professional experience
includes managerial positions with the Central Planning Office
and the National Bank Of Poland Analyses and Research
Department. His latest position was that of a member of the PZU
Zycie board of management.
PTE Nationale-Nederlanden Polska
The PTE NN stock is divided between ING Continental
Europa Holding B.V. (80 percent) and Bank Slaski (20 percent).
Its capital, which at present totals Zl16.4 million is to grow
to Zl 150 million early next year. The estimated number of
future clients will be around 50,000 people. The NN PTE
distribution network will rely chiefly on the network operated
at present by Bank Slaski and the TU na Zycie
Nationale-Nederlanden insurance company. The society will draw
on the experience of the ING which manages pension funds in, for
instance, Holland, Mexico, Peru, Australia, the Czech Republic
and Hungary. Its depository will be Bank Rozwoju Eksportu.
Marian Czekanski,52, the NN PTE president, is a graduate
of the Warsaw School of Economics and of the Warsaw Technical
University. He holds a PhD in economics. In the 1970s he worked
for the Government Planning Committee. His other professional
experience includes positions with the Ministry of International
Economic Cooperation, including that of a commercial councillor
at the Polish embassy in Ottawa. In the past six years he held
managerial positions in the Bank Polska Kasa Opieki SA - Grupa
Pekao SA.
PTE Opoka Emerytalna
The PTE Opoka Emerytalna shareholders include: Kredyt
Bank PBI (47.5 percent), KBC Bank NV and Union Investment Euro
Marketing (16.5 percent each), ESAF Espirito Santo Activos
Financeiros (10.1 percent), Banko Espirito Santo (6.4 percent),
Narodowy Fundusz Inwestycyjny Piast (2 percent) and BTUiR Heros
Life (1 percent). The society's capital, which at present totals
Zl 20 million, is to go up to Zl130 million next year. To reduce
its operational costs, the PTE Opoka Emerytalna plans to rely on
the distribution network operated by its shareholders and
particularly the BTUiR insurance company and Kredyt Bank PBI.
The Belgian and Portuguese partners are to provide know-how they
gained operating similar pension funds in their countries and on
third markets. The society expects to provide services to
500,000 clients. Its transfers agent will be CA IB Financial
Advisers.
Franciszek Zieba, 52, the society's president is a
graduate of the Wroclaw Academy of Economics. He has almost
twenty years of academic experience. Zieba held managerial
positions with the Exbud company and Bank Swietokrzyski in
Kielce. From 1994 to 1998 he was the president of the TU TUK SA
insurance society. He is a member of the UBF insurance guarantee
fund council.
PTE Pekao/Alliance
The sole shareholder of this society is the
Pekao/Alliance Capital Management, with the stock divided
between Bank Pekao SA (51 percent) and Alliance Capital
Corporation (49 percent). Its capital amounts to Zl 17.1 million
and the number of clients is expected to total between 530,000
and 550,000 people. The society's intends to rely on the
network operated by Bank Pekao SA which at present has 526,000
outlets throughout Poland. Pekao Financial Services will serve
as the society's transfers agent. The PTE Pekao/Alliance expects
to benefit from Alliance Capital's experience which at present
operates 33 out of United States' 51 pension funds.
Wojciech Gryko, the society's president , is a graduate
of the Warsaw School of Economics. His previous experience
includes managerial positions with Bank Polska Kasa Opieki SA
and Pekao SA and with the TFI Przymierze investment fund
society.
PKO/Handlowy Powszechne Towarzystwo Emerytalne
The PKO/Handlowy PTE stock is divided in equal
proportions between the PKO BP and Bank Handlowy w Warszawie SA.
The society's capital at present totals Zl120 million and is to
be raised to Zl 200 million next year. The PTE plans to operate
pension funds for around 750,000 people. Under an agreement
signed earlier this year, in the process of its organisation
this PTE will be advised by Provida International, a company
which operates pension funds for over 5.6 million people in
South America. Under the said agreement Provida may acquire up
to 20 percent of the PKO/Handlowy PTE stock. The depository for
this society will be Bank Rozwoju Eksportu.
The PKO/Handlowy PTE President Krzysztof Lutostanski, is
a 47 year old graduate of the Warsaw School of Economics. From
1977 to 1992 he worked for a number of government agencies
including the Planning, Budget and Finance Commission and the
Main Statistical Office, GUS. In 1992 he became active on the
insurance market, holding high-ranking positions in Amplico
Life, Compensa and Cigna Stu Zycie companies.
Pioneer Powszechne Towarzystwo Emerytalne
The Pioneer Group Inc. is the sole shareholder in this
PTE whose capital totals at present Zl 34 million. The society
expects to provide services to 300,000-600,000 clients. Its
depository will be bank Pekao SA. Enjoying a strong
international position, the Pioneer Group decided it could run
the PTE on its own. The Pioneer trustee fund has offered
private pension plans in Poland since 1995.
The Pioneer PTE president is Krzysztof Szajek, Warsaw
University graduate with a seventeen years' experience in the
banking sector. From 1995 to 1997 he was the first
vice-president of the Pekao Trading Corporation in New York. His
latest position was that of vice-president for investment in the
Pekao SA's New York branch.
Powszechne Towarzystwo Emerytalne PZU
The PTE PZU's sole shareholder is PZU Zycie, the number
one life-insurance company in Poland which plans to acquire the
biggest section of the PTE market (from 900,000 to 1 million
clients). Its capital totals Zl 20 million at present is to
grow to Zl 200 million next year. The PTE PZU intends to rely in
a major extent on the insurance policies sales network organised
by the PZU and PZU Zycie insurance companies (380 outlets and
6,000 insurance agents). The society has chosen ComputerLand for
its transfers agent.
Malgorzata Kobierska, the PTE PZU president, is a
graduate of the Higher School of Economics in Poznan. She holds
a PhD in economics and since 1993 has worked in the banking
sector, where she held the positions of Bank Staropolski
president and vice-president of the PFK capital fund.
Powszechne Towarzystwo Emerytalne Norwich Union
Norwich Union, a leader on the British insurance market
holds 100 percent of this PTE whose capital at present totals Zl
17.1 million and is to be raised to Zl 147 million next year.
The society is in the process of organising a distribution
network in Poland but it refused to reveal the names of the
partners involved.
The PTE Norwich Union president is Andrzej Jacaszek, 38,
a graduate of the Merchant Marine Academy in Gdynia and of the
Warsaw School of Economics where he competed post-graduate
studies in management and marketing. His professional experience
includes top managerial positions with BPS Consultants, Agros
Holding and the Warta insurance company.
Powszechne Towarzystwo Emerytalne PBK
The biggest shareholder in the PTE PBK is Powszechny
Bank Kredytowy (98 percent), with the remaining stock divided
between Gornoslaski Bank Gospodarczy (5 percent) and the TU PBK
insurance company (2 percent). The society's capital totals Zl
70 million and the number of future clients has been estimated
at 400,000-600,000. It plans to operate through the
distribution network providing services to the whole of the PBK
group which, apart from the bank itself includes PBK life
insurance, leasing, brokerage, security and investments
companies. The PTE PBK has chosen Bank Rozwoju Eksportu for its
depository.
The PTE PBK president is Henryk Chmielak, a 50 year old
graduate of the Warsaw School of Economics. His earlier
positions include those of vice-minister of finance, the
president of the Warta insurance company, vice-president of Bank
Unii Gospodarczej and director of the TU na Zycie Polisa Zycie
company specialising in life insurance. He has a PhD in
economics.
Winterthur Powszechne Towarzystwo Emerytalne
The Winterthur PTE stock is divided between Wintherthur
Life (70 percent) and The European Bank for Reconstruction and
Development (30 percent). The society's capital totals Zl125
million. Wintherthur, which has long-time experience on the
Swiss insurance market and in third countries, including the
Czech Republic and Hungary, hopes to acquire around 10 percent
of the market in Poland.
Ireneusz Luszczewski, the president of the Wintherthur
pension fund society, is a 37 year old graduate of the Warsaw
School of Economics and Warsaw University and of Yonsei
University in Seoul and the New York Institute of Finance. He
headed the group for the organisation of the Korona TFP trustee
fund, took an active part in founding the Allianz BGZ Polska
insurance company and worked as vice-president for these
organisations.
PTE Poczty Polskiej, Paribas oraz Cardiff
The stock of this society is divided between Poczta
Polska (over 50 percent) and Paribas and Cardiff (under 50
percent). Its capital at present totals Zl16.8 million. Poczta
Polska's major contribution to the fund is its well developed
network with post offices located even in the smallest towns.
The French Paribas bank, which is among the world's ten biggest
banks, is the sole owner of the Cardiff insurance company which
has concluded an agreement with the PKO BP bank on cooperation
in life-insurance plans (the third tier of the new social
insurance system).
The society's president is Andrzej Gruszka, a 38 year
old Warsaw University graduate, with experience in the Ministry
of Privatisation, Kredyt Bank and Polski Bank Rozwoju. His
latest position was with Poczta Polska where he headed the
economic development office.
PTE Big Banku Gdanskiego
The two shareholders in this PTE are Big Bank Gdanski
(55 percent) and Eureko BV (45 percent). At present its capital
totals Zl 16.4 million and is to rise to Zl 120 million next
year. The society hopes to win from 500,000 to 700,000 clients
(around 10 percent of the market). Its services will be
available through Big Bank Gdanski outlets and a special call
centre (telephone services). Eureko, a company founded by seven
firms from Holland, Britain, Portugal, Denmark, Sweden, German
and Switzerland, is to contribute know-how in the organisation
of pension funds, management of assets and distribution. The
society has chosen Bank Pekao SA as its depository. The transfer
agent will be Besta, a company founded by BIG BG, Eureko and
Softbank.
Piotr Kowalczewski, the society's president, is a Warsaw
University graduate, who since 1989 has held managerial
positions in the BIG and BIG Bank Gdanski where since 1997 he
was managerial board member and director for capital market
transactions in the BIG BG brokerage.
Daewoo Energetyka Zachodnie PTE
This pension fund society has four shareholders, namely
Daewoo FSO (46 percent), Polski Fundusz Kapitalowy capital fund
(34 percent), Fundusz Gornoslaski (15 percent) and Daewoo TU
insurance company (5 percent). Its capital totals Zl 20
million. This will be the only PTE with headquarters outside
Warsaw. It hopes to provide services to up to 700,000 clients,
mainly from Silesia. The society's distribution network will
rely in a major degree on the network operated by the TU Daewoo
insurance company (2,400 insurance agents, nearly 70 outlets).
The society's president, Wincenty Lewandowski, 58, is a
graduate of Warsaw University Law and Administration Department.
Former vice-minister of finance (1986-1989), in the early 1990s
he held the position of the Inco-Veritas company president. In
1995 he became the president of the TFP Fidelia trustee fund.
(Based on Puls Biznesu supplement Powszechne Towarzystwa
Emerytalne December 11, 1998).
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