On Tuesday September 30th the Council of Ministers passed the amendment to the act on pensions from FUS (Social Security Fund), regulating the new valorization rules. – Even a one-time application of the pension increase mechanism could lead to many years of additional substantial expenses – warns expert of Employers of Poland Łukasz Kozłowski.
With the lack of financial stability of the Polish social security system and unfavorable demographic tendencies in mind, the solution accepted by the government could be a significant burden for the public finance sector.
The intent of the government – improving the situation of pension recipients – is good, but the interest of future pensioners has not been taken into consideration to an appropriate degree. As insured persons and taxpayers they will have to finance additional expenses for benefits without the right to increased pensions. The pension reform of 1999 introduced a principle according to which the pension amount is closely related to the sum of contributions paid to ZUS (Social Security Institution). Changes in valorization rules interfere with the basic principles of the new pension system.
Łukasz Kozłowski, expert of Employers of Poland