Tuesday, August 18, 2015

Single allowance or higher indexation of pensions? The government can not make it – Interia

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Single supplement or higher indexation of pensions? The government may not be able / © 123RF / Picsel

The Ministry of Labour has prepared two variants increases in pension . The first involves a single allowance amounting to 200-250 zł per person depending on what the money would be budgeted for disposal. In this case, if the Parliament had with the enactment of a special law, allowances could be paid later this or early next year. The second variant is the indexation rate higher than that assumed in the July Council of Ministers regulation at the level of 0.52 percent.

As calculates Ministry of Labour, the realization of one of the variants need at least 1.5 billion zł. In the second case, this would mean that the rate increases for retirees would rise to 1.3 percent. or 1.5 per cent. In both variants of the Ministry is considering limiting the additional increase for pensioners receiving the lowest or average benefits. The problem is that the Prime Minister Ewa Kopacz not yet decided which option to choose. In the back of the government and the PO are working on election program of this party, which has also contain ideas for next year. Still analyzed various proposals, hence the lack of a final decision.

sympathetic to the ideas of the Labour Department does not turn Mateusz Szczurek. The Minister of Finance is in the process of constructing the budget. In the June interview with RMF FM Szczurek subjected the decision from that, “what we will stand for this and next year.” Especially that from a budgetary point of view, the most rational option would maintain the current method of indexation, consistent with the July regulation. In this case, the budget expenditure would amount to only 940 million zł, while in recent years was more than 3 billion zł. This shows the scale of possible savings for the budget. If Szczurek had to go on hand Wladyslaw Kosiniakowi-Kamyszowi, would have to take into account a total of nearly 2.5 billion zł.

Another problem is the time. For elections has been two months, and the introduction of additives requires the adoption of the bill by the Sejm. Meanwhile, the government’s path means at least 21 days public consultation and inter-passing has given its opinion and the need for the project by the government and the Standing Committee of the Cabinet meeting. Only later it can be addressed parliament. Doing so within two months on the border of feasibility.

On the other hand, if the idea of ​​raising the rate of indexation just as true amend the decision of the Council of Ministers during the work on the budget, but if the government does not want to give additional increases richest pensioners you need to change the law and such a process would take as long as in the case of additives.

ekstrapodwyżkami speak political calculations. Keeping the adjustments in the current version is the lowest benefits increase by less than 5 zł. And pensioners are large, 9-million electorate is especially important for the PSL, from which the head of the labor department. In the case of single-ons biggest beneficiaries would be, after all pensioners with ASIF whose benefits are among the lowest. Against speaks in turn, the macroeconomic situation. All the time we have deflation, so the constitutional requirement increases (in real terms and pensions should not lose its value) is maintained regardless of the final decision on the matter.

Gregory Osiecki

18 August 2015

Source: Dziennik Gazeta Prawna

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