The bill in question is the one on amending the act on retirement pensions and pensions from the Social Insurance Fund, as well as certain other acts, just adopted by the government. The draft of new provisions has been made predominantly with the poorest seniors in mind. The draft’s host is the Ministry of Family, Labour and Social Policy.

Assumptions of the bill

The amendment assumes that in March 2019 the lowest retirement pension, pension due to full incapacity for work, family allowance pension and social benefit will increase to the amount of PLN 1,100. Currently, it is 1,029.80 zloty.

- With each consecutive indexation we strive to support seniors by increasing benefits. The current year indexation was the highest in the last five years (benefits increased by 2.98 percent – ed.) – says the Minister of Family, Labour and Social Policy, Elżbieta Rafalska. – Knowing that there is a large group of persons, who receive low benefits we also propose increasing minimum retirement pensions. I hope that due to the undertaken measures, the quality of seniors’ life will improve – adds Minister Rafalska.

Moreover, the lowest pension due to partial incapacity to work will increase from 772.35 zloty to 825 zloty. Modification of the indexation principles will also apply to retirement pensions and pensions of farmers, uniformed services, bridging retirement pensions and teacher compensatory benefits.

However, this is not all. The government proposes that the retirement pension and pension benefits increase (according to the forecast) by 3.26 percent, however, not less than by 70 zloty. It means that the lowest benefits will be increased next year by 6.8 percent, twice as high as if the statutory forecasted indexation indicator was applied.

Approx. 6.2 million of retired pensioners will be covered with the increase. The new principles will be predominantly beneficial to persons, whose benefits do not exceed 2,147.30 zloty gross.

Indexation of pensions and retirement pensions

This year’s indexation of benefits has already been the highest for 5 years – retirement pensions and pensions increased by 2.98 percent. Whereas, in 2017 the Law and Justice government increased the minimum retirement pension from 882.56 zloty to 1,000 zloty, which meant an increase by over 13 percent. In 2016 (apart from the statutory indexation) seniors were paid single additional payments (between 50 and 400 zloty net).

In total, the lowest benefits for retired persons in the years 2016-2019 will increase during PiS government’s tenure by one fourth (in the years 2016-2019).

In 2015, 3.55 billion zloty was allocated to the indexation of pensions and retirement pensions. This year it will be 5.96 billion zloty. As of March 2019 the indexation cost will amount to almost 8.4 billion zloty.