A right, not an obligation

Retirement is a right, not an obligation. After reaching statutory retirement age, a person may decide whether to exercise this right straight away or at a later date if they wish to remain on the labour market. Importantly, the later you retire, the higher your old-age pension will be. This is because the amount of an old-age pension depends on the sum of pension contributions paid, the amount of initial capital, the amount of funds accumulated in a sub-account and life expectancy.

When can a person retire?

After reaching statutory retirement age. Since 1 October 2017, the general retirement age has been 60 years for women and 65 years for men. After reaching this age, men and women may decide whether they wish to continue to work or leave work and retire.

Apart from reaching the general retirement age, a person must also document that they have completed a period of insurance and terminate their employment relationship in order to receive an old-age pension.

What do old-age pensions of persons born before 1949 consist of?

An old-age pension consists of a social part and an individual part.

The social part is a permanent, compulsory and fixed component of an old-age pension. It is calculated as 24% of the basic amount applicable on the date on which an application for an old-age pension is submitted or on which the right to this benefit arises.

The individual part, in turn, is that component of an old-age pension which reflects the contributory periods completed (i.e. the contribution of the person concerned to maintaining the old-age pension system), the non-contributory periods completed and the old-age pension assessment basis. 

The assessment basis is determined by calculating:

• 1.3% of the old-age pension assessment basis for each year of contributory periods,

• 0.7% of the old-age pension assessment basis for each year of non-contributory periods.

How are old-age pensions of persons born after 1948 calculated?

In order to determine the amount of an old-age pension, the sum of the initial capital and contributions accumulated in an individual account with the Social Insurance Institution (Zakład Ubezpieczeń Społecznych, ZUS) should be divided by life expectancy. Life expectancy is determined in accordance with a life expectancy table applicable on the date on which:

• you submit an application for an old-age pension,

• you reach retirement age, or

• you are granted an old-age pension ex officio (in place of a disability pension for incapacity for work received previously).

What are contributory and non-contributory periods?

Contributory periods are periods which relate to working life. What is meant here are periods of employment, periods during which you pay social insurance contributions or pension contributions by yourself (for example, because you run a business) and other periods recognised – under the legislation – as contributory periods.

Non-contributory periods are periods of inactivity on the labour market taken into account when determining old-age pensions and disability pensions, for example the period of pursuing one major in a higher education institution, provided that this education is completed, or periods during which a sickness benefit or a rehabilitation benefit is received.

What is initial capital?

Initial capital reflects the contribution of the person concerned to maintaining the old-age pension system before 1999. Initial capital is the amount which replaces the sum of contributions accumulated by persons who worked before 1999, i.e. before the creation of individual accounts with the ZUS. It is recreated on the basis of the insurance period and the earnings of the person concerned before that year.

The person concerned may apply for the calculation or conversion of the initial capital at any time. The application should be accompanied by, inter alia, documents confirming the amount of remuneration.

Do you need to have completed an appropriate insurance period?

For persons born after 1948, the insurance period has no impact on whether the right to an old-age pension is granted or not. It is, however, crucial for determining the amount of this pension. The right to the determination of the minimum old-age pension also depends on the insurance period. Since 1 October 2017, the insurance period required for the minimum old-age pension has been 20 years for women and 25 years for men.

How does a person apply for an old-age pension?

After you reach the general retirement age, you must submit an application for an old-age pension (EMP). The form for such an application can be found on www.zus.pl in the ‘Model forms’ tab and in any ZUS branch. The application for the benefit may be:

1. submitted in writing – complete the application, together with the necessary annexes, and send it to the ZUS by post or submit it at the ZUS branch having jurisdiction over your place of residence. Find out where the nearest ZUS branch is located.

2. submitted orally for the record at a ZUS branch;

3. sent electronically via the Electronic Services Platform (Platforma Usług Elektronicznych, PUE) – on www.zus.pl. In order to do this, you must have an account on the PUE ZUS portal and a trusted profile on the Electronic Platform of Public Administration Services (Elektroniczna Platforma Usług Administracji Publicznej, ePUAP) or a secure electronic signature.

In order to apply for an old-age pension, you must terminate your employment relationship with the previous employer. The certificate of employment obtained from that employer must be submitted together with the application for an old-age pension. 

Important! Documents enclosed with the application must be submitted at a ZUS branch or sent to the ZUS by post.

 

NAME OF THE ENTITY RESPONSIBLE FOR THE CONTENT OF THE INFORMATION

Ministry of Family and Social Policy

Department of Social Insurance

email: info@mrips.gov.pl