Tuesday, September 30, 2014

The government adopted a draft amendment dot. Indexation of pensions (description) – Virtual Poland

The government adopted a draft amendment dot. Indexation of pensions (description) – Virtual Poland

The government adopted on Tuesday a draft amendment of the Law on pensions from the Social Insurance Fund. According to him, next year’s indexation of such benefits shall not be less than 36 zł. After the changes will provide the lowest 880.45 zł.

“For the low inflation increase pensions next year would be very small. Lowest pension would increase only 9 zł. Could not agree to it” – so the need for a project justified the labor minister Wladyslaw Kosiniak- Kamysz, quoted in Tuesday Communication Ministry.

“The greatest support will be the person with the lowest pensions. Their benefits will increase by 4.26 percent. Instead, an increase of 9 zł, 36 zł get” – he added.

According to him, the new rules will benefit indexation of almost 92 percent. pensioners of the Social Security and all of ASIF and receiving retirement benefits and social pensions. No one on changing the way indexation will not lose.

As announced Government Information Centre, the draft prepared by the Ministry of Labour provides a one-time modification of the currently existing indexation of pension benefits. According to the approved proposal from March 1 next year, benefits from the Social Insurance Fund will be increased by 1.08 per cent., But the increase may not be less than about 36 zł. “In this way, the level of minimum benefits will be further protected” – stressed the CIR.

As a result, the proposed indexation increase the lowest benefits to a level close to the subsistence minimum per person in double pensioner households and “increase their sense of security and stability.”

Currently, benefits are increased with the assumption maintain purchasing power in relation to the cost of living during the preceding calendar year and an increase above the rate of inflation by at least 20 percent. real growth in average salary in the previous year.

Application of next year indexation percentage-quota, or indexation rate with a guaranteed minimum rise of 36 zł will make all payments under 3333.33 zł per month will be increased to a greater extent than if they were carried out according to the current indexation rules. As a result of the proposed changes in people receiving minimum pensions get 880.45 zł. If only apply indexation rate would be 853.57 zł.

CIR said that under the indexation by the same percentage basis will be increased benefits from the Social Insurance Fund. “The behavior of the real amount of base is essential, because it determines the amount of the benefit przeliczanego after indexation, for example. Increments on the application of contributory and non-contributory or determining other benefits” – reads.

In the case of disability due to partial incapacity to work and disability group III, the minimum increase is expected to be 27 zł, or 75 percent. guaranteed minimum amount. “For persons receiving a partial pension adjustment amount can not be less than 18 zł” – noted.

Recipients receive a social pension is a benefit of 84 percent. zwaloryzowanej pensions for total incapacity for work. To increase the social pension will not be necessary to submit an application by a beneficiary, because it will take up the Social Security or pension authority of the office.

“The same rules for indexation of pensions will include individual farmers and the uniformed services. They also relate to bridging pensions, teacher training, compensation benefits, disability benefits for veterans and disabled veterans and soldiers” – according to the proposals adopted by the government.

retirement benefits and allowances are to be – according to the adopted proposal – increased by 36 zł.

Draft amendment also provides for the extension of the circle of family members who will be eligible for a funeral grant. To be joined: grandparents, children in foster care and those over which establishes legal custody.

During the public consultation Polish Association of Pensioners and Disabled proposed changes in the indexation adopted with moderate satisfaction. Although indicate that this is a step in the right direction, the proposed increases found to be too modest.

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