Retirement pension - the most important information about changes in the law

Service

The basic principle of acquiring the right to an old-age pension for insured persons born after December 31, 1948 is reaching the retirement age. It is on this basis that the basic retirement benefit is awarded in accordance with Art. 24 of the Act of 17 December 1998 on pensions and disability pensions from the Social Insurance Fund (Journal of Laws of 2017, item 1383).

Retirement pension - purchase conditions

Due to the signing by the President of the amendment to the above Act, the retirement age is reduced from October 1, 2017, which is 60 for women and 65 for men. Another important condition for acquiring an old-age pension is that the insured has an appropriate contributory and non-contributory insurance period. From 1 October 2017, the length of service that is taken into account when calculating the old-age pension will be 20 years for women and 25 years for men, respectively. The retirement pension will depend on the length of service you have earned. An important element of obtaining a pension is having any pension insurance on the ZUS account.

Types of benefits

Therefore, the provisions regulating pensions provide for the following types of retirement benefits:

  • retirement pension according to the age indicated in Art. 24 of the Pensions Act,

  • a retirement pension awarded ex officio instead of a disability pension to a person who has reached the age entitling to this retirement pension and has been subject to social insurance or old-age and disability pension insurance in accordance with Art. 24a of the Pensions Act,

  • mixed retirement pension awarded on the basis of Art. 183 of the Pensions Act,

  • old-age pension awarded to insured persons employed in special conditions or in a special capacity pursuant to Art. 184 of the Pensions Act,

  • the bridging pension (in accordance with the Act on bridging pensions of December 19, 2008 (Journal of Laws No. 237, item 1656, as amended)) and the capital pension (in accordance with the Act on Capital Pensions of November 21, 2008) (Journal of Laws No. 228, item 1507, as amended)).

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Retirement pension - the minimum amount

Pursuant to the amendment to the Act on Pensions, the minimum amount of the old-age pension was set at PLN 1,000. The height depends on the following factors:

  • valorized initial capital,

  • the amount of indexed premiums on the insured person's account,

  • funds credited to the sub-account, divided by the average life expectancy according to the tables of the Central Statistical Office.

If, as a result of the valorization, the old-age pension granted to a person who does not have the contributory and non-contributory period required to determine this old-age pension at the amount of the lowest old-age pension is lower than those applicable from the indexation date of the new amounts of the lowest disability pensions, it is increased accordingly to:

  1. the amount of PLN 1,000, if the ex officio pension was granted to a person previously entitled to a pension due to total incapacity for work;

  2. the amount of PLN 750, if the ex officio pension was granted to a person previously entitled to a pension due to partial incapacity for work (Article 85 of the Pensions Act).

The amount of the pre-retirement benefit is PLN 1,040.00 per month, except for benefits for people whose benefit cannot be higher than the one recently received. If, as a result of the reduction, the amount of the pre-retirement benefit would be lower than PLN 520.00, the pre-retirement benefit is PLN 520.00 (Article 4 of the Act amending the Act on old-age and disability pensions from the Social Insurance Fund).

It is worth mentioning that pursuant to Art. 85 of the Pensions Act, the lowest pensions for incapacity for work are as follows:

  1. PLN 1,000.00 per month - for people who are completely incapable of work;

  2. PLN 750.00 per month - for persons partially incapable of work.

It should be added that the entitlement to a disability pension ceases on the date on which the pension from the Fund was granted (Article 101a of the Pensions Act).

Retirement pension indexation

Pursuant to Art. 5 of the act amending the act on pensions from March 1, 2017. “Indexation consists in increasing the amount of the benefit, in the amount due on February 28, 2017, with the indexation index, determined in accordance with Art. 89 of the Act amended in Art. 1, not less than PLN 10.

  • The indexation of the base for the amount of the benefit from the Social Insurance Fund consists in the multiplication of the base for the amount of the benefit by the ratio which is the quotient of the indexed amount of the benefit from the Social Insurance Fund and the amount of this benefit determined on the day preceding the indexation date.

  • In the case of a benefit lower than the amount of the lowest benefit, to which the lowest benefit guarantee does not apply, the indexation consists in increasing the amount of the benefit in the amount due on February 28, 2017 with the indexation ratio.

  • In the case of the pension due to partial inability to work and the 3rd group invalidity pension, the adjustment amount is not less than PLN 7.50.

  • In the case of a partial pension, the indexation amount is not less than PLN 5.

  • If the retirement pension from the Social Insurance Fund is due together with the periodic capital retirement pension, each of these benefits is increased in the manner specified above, with the amount being determined in proportion to the amount of these benefits.

  • The amounts of the maximum reductions will be increased as from 1 March 2017 using the indexation ratio. '

It is worth adding that when applying for a pension in June, the basis for calculating the old-age pension in accordance with the new rules is calculated on the basis of the annual indexation. On the other hand, submitting an application for a pension in every other month is more advantageous, because the basis for calculating the old-age pension is additionally indexed on a quarterly basis.

Life tables

Pursuant to Art. 26 of the Pensions Act "The old-age pension is the equivalent of the amount resulting from dividing the calculation basis determined in the manner specified in Art. 25 by the average life expectancy for people of the age equal to the retirement age of the insured person. The insured person's age on the retirement date is expressed in completed years and months. Life expectancy is determined jointly for men and women and is expressed in months. The President of the Central Statistical Office publishes in the form of an announcement in the Official Journal of the Republic of Poland "Monitor Polski" every year, by March 31, the life expectancy tables for the age of the insured. The tables referred to above are the basis for awarding pensions for applications submitted from April 1 to March 31 of the following calendar year. If it is more favorable for the insured, life expectancy tables are used to calculate the amount of the old-age pension, valid on the day on which the insured person has reached the retirement age of 60 years for women and 65 for men ”.

In view of the above, in accordance with the amended act, when determining the right to a retirement pension, ZUS has the option of comparing the tables depending on the period of validity at the moment of reaching the relevant age of the insured person. Thus, it will be able to use different variants of tables to compare the insured's age, i.e. tables according to the time of reaching the increased or reduced retirement age and tables at the time of submitting the pension application. For people who applied for a pension by September 30, 2017 and at the same time reached the appropriate increased retirement age, ZUS will select the most advantageous table for the insured person.

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Pre-retirement protection

It should be noted that in connection with the amendment to the Act on Pensions, the period of pre-retirement protection for employees has changed. Women are protected against dismissal for 4 years after turning 56 and men after 61. The protection should last until the age of 60 for women and 65 for men, respectively. It is worth recalling that, according to the jurisprudence, the employee may not be terminated due to the acquisition of pension rights.

It is worth adding that in the case of supplementing the pension by a retiree, the principle of suspending after reaching the general retirement age no longer applies, so it is not reduced or suspended.

In conclusion, people who:

  • are 60 or 65 years old after September 30, 2017;

  • by 30 September 2017, they will be 60 or 65 years old, but they will not reach the increased retirement age by then, which depends on contributions and working periods;

  • by 30 September 2017, they will reach the increased retirement age, if they have not yet received a universal old-age pension.

If the insured persons are not yet at the increased retirement age before that date, the retirement pension will depend on the month in which the application is made, but after October 1, 2017.

Insured persons who want to receive the lowest pension from 1 October 2017 should prove respectively: men 25 years of the minimum contributory and non-contributory service, women 20 years of the minimum contributory and non-contributory service.

If you are awarded the right to a pension before October 1, 2017, the amount of which will be lower than the minimum pension amount, the amount will be increased ex officio to the minimum pension, provided that you have at least 20 years of contributory and non-contributory service.