The demographic changes occurring in Poland cause that for many years the number of people authorised to take advantage of old age and disability benefits is on the rise. In 2005, there were 3.94 million pensioners, while in 2009, their number surged to nearly five million. Matching this tendency requires the construction of a modern pension system, adapted to the changing structure of the society.That is why a bridge pension system was introduced. The framework of the open pension funds is systematically streamlined. Each year, the government increases pension and retirement benefits. Willing to face up to the demographic challenges, the government keeps encouraging people to have children.
Bridge pension system
A new system of benefits in the form of bridge pensions directed to employees executing work in special conditions or of special character was introduced in 2009. The payments were based on objective medical criteria and the principle of solidarity. Entitled to bridge pensions are employees who were born after 31 December 1948, executed work in special conditions or of special character for at least 15 years, and fulfil the age criterion (55 years for women and 60 years for men).
Changes in the second pillar
Another change introduced by the government was the definition of the principles of pension payments from the open pension funds, one of the pillars of the Polish pension system. Thanks to the new law of 2009 on capital pensions, it is possible to pay means accumulated by people on private accounts in the open pension funds.
The government also increased the sums deposited by people in the open pension funds and their future pensions through cutting down the charges collected by the funds for capital servicing from seven percent to 3.5 percent. Due to that, in 2010 alone, more than PLN 700 million remained in the pockets of the insured persons. The means work for future pensions.
The government endorsed successive solutions streamlining the Open Pension Funds aimed at securing the interests of the future pensioners and their higher benefits. In March 2011, the government put forward new proposals to improve the open pension funds system. They entered into force in May 2011. Their key objective is to secure the interests of future retirees, raise the amount of their performances, and decrease the state debt resulting from the transfer of money to the funds. The pillar structure of the Polish pension and retirement system will be maintained. In the 2012-2013 period, the premium transferred to the open pension funds will be reduced from 7.3 down to 2.3%. The remaining 5% will be allocated at the special individual sub-accounts in ZUS (Social Insurance Institution). The money will be indexed in accordance with the average economic growth rate. It will be subject to inheritance, the way the OPF capital is. Over the next years, the premium transferred to the OPFs will be gradually increased so that it reaches the level of 3.5% by 2017. The government has decided to make it possible for the Polish nationals to make additional pension savings. They will be tax deductable. The OPF investment limits will also be altered so that more funds can be invested in stocks.
Pension rises
Each March, valorisation of old age and disability pensions is carried out. The real growth of pensions considering inflation amounted to more than 18 percent in the years 2005-2010.
Each March, valorisation of old age and disability pensions is carried out. The real growth of pensions considering inflation amounted to more than 18 percent in the years 2005-2010.
Family-oriented policy
In order to counteract the adverse demographic changes, the government is taking steps encouraging parents to have children. As of 2010, the maternity leave was lengthened and divided into two parts: basic and additional. Apart from the 20-week basic leave, mothers will enjoy a two-week additional leave, which will be lengthened successively to reach six weeks for one child in 2014. One-week paternity leave was introduced on 1 January 2010 to be lengthened to two weeks in 2012.
The government introduced solutions which render it easier to take care of children aged up to 3. The duty of care will be performed by: nurseries, day care centers, daily caregivers, and nannies. The activities undertaken by the government have contributed to the popularization of preschool education. It rose by more than 15% among children aged 3-5 between 2007 and 2009. At the same time, the number of places in preschools has been on the rise. Over 190 thousand places for the youngest children were created between 2008 and 2010. Per contra, that number rose by only 30 thousand in the 2006-2007 period.