The current model, based on which is carried out indexation is based on an inflation and 20 percent. wage growth. Since two years in Poland had a negative inflation (deflation), increases in pensions were symbolic. To compensate pensioners and pensioners, in 2015 and 2016. Pensioners paid a one-time supplements.
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The plans Ministry of finance on the budget for next year also included expenses related both to the ‘normal’ valorization (for this purpose has to go approx. 1.6 billion zł), and which amount to cover the cost of the payment of any allowances (approx. 1.7 billion zł) .
in parallel, however, the Ministry of family, work and social policy and the social Insurance Institution pending work on the development of new indexation rules. According to unofficial information, “DGP” that the latest idea speaks of the connection valorization of GDP for. As a result, pensions will grow faster.
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The idea of linking increases with an increase in GDP raises a number of questions: whether the GDP will refer only to the pensioners with the lowest benefits, or to all? Is the GDP will run forever, or only in years in which there is deflation? If the force in times of inflation, and with the pre-crisis level, could lead to spectacular increases in benefits. In this case, the budget would have trouble covering this expenditure. According to calculations by the Ministry of the family increase pensions for each percentage point is an additional cost to the state of more than 2.2 billion zł per year.
The final decision on indexation rules likely will be announced in August or September, when the government will be finishing work on the budget for 2017.
Source: gazetaprawna.pl, ed. MK
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