* Poland says to avoid Hungarian route on pension reform
* Warsaw has to rein in debt, mulls moderate pension reform
(Adds more quotes, detail)
WARSAW, Dec 6 (Reuters) - Poland's planned reform of its pension system will avoid the sort of radical overhaul that has spooked investors in Hungary, the prime minister's top economic aide said on Monday, adding decisions would be made on the reform in late December.
Rating agency Moody's cut Hungary's credit rating on Monday, citing concerns over fiscal sustainability. [ID:nLDE6B5073] Investors have sold Hungarian assets since Budapest announced it was scrapping private pension funds.
"Hungary's example shows that short-term, anti-system or one-off solutions don't work," Michal Boni told Reuters. "We are determined not to follow in Hungary's footsteps. We will search for different solutions."
Poland is seeking ways to rein in its public debt amid concerns that it could breach the 55 percent of GDP level this year, a move which under Polish law would trigger painful spending cuts.
The centre-right government has been working on solutions that would change the functioning of the private pension funds (OFEs), part of a 1990s reform that generated additional temporary costs for the state that push up its budget deficit.
"In Poland's situation it's better to seek a wise correction of the system that would guarantee the long-term benefits of this system and at the same time decrease the current debt threat," Boni said.
"We will make the general decision by Christmas. Then everything must be translated into the legislative work of the government and the parliament. So these solutions won't be in place in the first quarter (of 2011) for sure."
Officials say lowering the cash contributions to the OFEs is the most likely option, with OFE-dedicated, non-tradeable bonds being substituted for some of the transfers. [ID:nLDE6B01IQ] (Reporting by Gabriela Baczynska; editing by Patrick Graham)