The Role Of The Insurance Ombudsman

Pension system reform in Poland was inevitable, mainly due to an aging population and financial instability. A new multi-pillar pension system replaced the former system, which had been entirely financed on a pay-as-you-go basis. The first and second pillars are based on a Defined Contribution formula and represent the compulsory part of the pension scheme. The third pillar is organized on a voluntary basis and includes supplementary pension savings. The second and third pillars are funded resulting in the allocation of pension capital on financial markets. Implementation of a partly-funded pension system and privately managed pension funds made it necessary to create an institution that represents pensioners’ interests in the public system. Hence the competition of insurance ombudsman was enlarged to protect the participants of pension funds beginning in April 2002. An insurance ombudsman deals with complaints of the insured and takes action to correct pension market failures. Moreover, the institution cooperates with the pension supervisor and offers free pension advice.