Now, employees with such experience can expect a pension equal to the average half final salary. Calculations are shocked by representatives of the trade unions: OPZZ, Forum of Trade Unions and the “Solidarity”. Yesterday I met with President Bronislaw Komorowski officials to talk about the necessary changes in the social security system. The basis for discussion was the documentary “The retirement age, length and height of contributory pensions in the reformed pension system in Poland” prepared by the Office of Public Policy Office of the President.
It shows also that the only people who began their professional activity before the age of 20 years of age and who pay contributions for at least 45 years should have the right to a pension regardless of age. The unions would like to see these benefits were granted to women in the 35-year period of contributory and men having 40 years of work (these proposals take into account citizens’ bill, which is in the Parliament). Even those who meet the criteria set out in the report can not be sure that uzbierają your retirement account that allows for the payment of the amount of the minimum pension. This means that the state budget could be forced to pay extra for their benefits. Hence the fear that to find the money, as amended (read: more stringent) will be the current rules for payment of minimum benefits. – Recently, more and more often to talk about it. Was already an alarming statement of Prime Minister Tusk, which passed unnoticed, and which concluded that the minimum length of insurance entitlement to such pensions could be raised from 25 to 30 years – says Wieslaw Taranowska, Vice-President OPZZ.
On the other hand, the partial pensions should use according to the report, only those who have completed 65 years and are at least 40 years of service – regardless of gender. Trade unionists do not like it (today the same criteria apply to men, women are entitled to partial benefits after completing 62 years of age and with 35 years of seniority).
Pensions from Social Security will not be protected against poverty
The behavior of the current rules on indexation accumulated retirement account may make in the future, the minimum pension will steadily decline compared to the average wage.
Raising the retirement age would be a way to increase of pensions. It turns out, however, that ultimately, in a very long period, the retirement age is not important from the point of view of the financial balance of the system. If the insured in the reformed pension system will end earlier professional activity, their benefit paid will be lower. Such regularity due to the fact that the accumulated capital will be divided by the greater number of years of life expectancy. Thus, less money spent on the payment of social security. So according to the report, “The retirement age, length and height of contributory pensions in the reformed pension system in Poland” prepared by the Office of Social Policy of the Presidential Chancellery.
– The report presented at a meeting at the Presidential Palace today exposes flaws current system – Wieslaw Taranowska notes, Vice-President of OPZZ, a member of the Supervisory Board of the Social Insurance Institution.
The Government convincing Poles to work longer, claimed that other EU countries also decided to work for 67 years. Presidential report reveals that the mortality of elderly people in Poland is quite significantly higher than in many other European countries. For people aged 60 years, life expectancy is now 22 years in Poland, in Germany – 24 years and in France for 26 years. The data concerning not only mortality but also morbidity shows that the average man at the age of 50 years is now in front of you on average 15 and a half years of healthy life and full efficiency (for comparison: in France almost 19 years, but in Germany, only 14 and half a year), the average woman over 17 years old (20 in France and 15 in Germany). It can therefore be concluded that the Poles actually work longer hours than other EU citizens, because they live shorter.
The unions have doubts concerning changes the rules of use of partial retirement. Currently, the right to such benefits have men at age 65 with at least 40 years of contributory and non-contributory periods. In contrast, the Constitutional Court challenged the right of women to this form of early retirement at age 62 if you are interested in at least 35 years of contributory and non-contributory periods. The judges questioned those provisions because of their indefinite nature and the lack of harmonization with the process of leveling the retirement age for men and women. According to officials of the presidential rules will have to be changed so that both the threshold age for early retirement and the requirements of the length of insurance coverage has been achieved gradually aligned and harmonized with the gradual raising of the retirement age. Most likely, it will eventually 40 years seniority and 65 years for both sexes.
– do not agree, however, to reduce the employment of this group of people – adds Wieslaw Taranowska.
Experts point out that the report prepared by the Office of Social Policy does not serve the restoration of the old pension system, in which the amount of the benefit was increased about the social part dependent on the average wage in the national economy in a given year.
– For several months last offensive information to convince Poles to the need for additional savings. Since the future pensions to be so dramatically low, then you need to make savings in mandatory occupational pension schemes. This solution, however, can be very dangerous for companies, because in a way that significantly increase the cost of labor – notes prof. Leocadia Oręziak from the Department of Finance for International School of Economics. For such a solution does not agree to the employer.
The report also assumes that the pension replacement rate (the ratio between retirement and our previous earnings with a certain number of years of contribution) will gradually decline. This reduction will result from one side of the expected continued growth in the future, life expectancy in the elderly, and hence increase in the number by which the share capital is divided collect contribution for calculating the amount of benefits upon retirement. On the other hand, the downward trend in the indicators used for indexation of capital contribution, ie the rate of growth of the wage fund of insured persons in the ZUS and GDP growth. In extreme cases, the replacement rate may fall to 20 percent.
With these estimates do not agree Maciej Rogala, an independent expert, the pension insurance market.
– You can responsibly say today that in a few years, people with high seniority will not be able to work out the minimum pension and will have to make use of social assistance. Still because in Poland there is a constitutional principle that persons with the required training are entitled to minimum pension – Maciej Rogala notes. – Moreover, the force of our country ILO, which must be respected.
At the same time adds that the lowest replacement rate in relation to pensions will be the person earning the most and those not receiving the minimum wage. Because the wealthiest pay contributions to the extent of 250 per cent. projected average salary.
– And it is for this reason should be very cautious approach to the presented calculations. The more that appear during the presidential campaign – adds Maciej Rogala.
See illustration to the text in FULL-TIME
Bozena Wiktorowska
April 28, 2015
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