Prime Minister following the Council of Ministers: Pensions must be decent

The Council of Ministers has adopted beneficial amendments for old age pensioners born in 1953 who were negatively affected by the introduction of new pension calculation rules in 2013. Some of them are to receive a raise of more than PLN 1.4 thousand, while others will receive a back payment averaging more than PLN 12 thousand and an average monthly raise of ca. PLN 200. About 74 thousand people are to benefit from the changes. The government will also further allocate more than PLN 21 billion to the National Road Construction Programme. This means more money for the construction of the S6 and S10 expressways, among others.


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Photo: Krystian Maj / Chancellery of the Prime Minister of Poland

‘8 years ago, old age pensioners were informed that they would have to work longer. The attempts to fix the budget gap or tighten the tax system at that time were unsuccessful. It was we who brought back the retirement age as promised, and provided a decent living after retirement,’ Prime Minister Mateusz Morawiecki told the conference.

Who will benefit from changes to the retirement system?

‘We have decided to fix yet another mistake made by the PO-PSL government. We are enforcing the decision of the Constitutional Court in order to finally have justice for those born in 1953,’ the Prime Minister remarked.

A higher retirement pension will be provided to women and men born in 1953 who:

  • receive or received an early retirement pension;
  • were entitled to an early retirement pension before 1 January 2013;
  • have ever applied for a pension under the new rules, awarded upon reaching the statutory retirement age, and the pension was calculated according to a basic amount reduced by the sum of previously received early retirement pensions.
    - 62.6 thousand people will benefit from the change.
    - According to the estimates, they will receive a monthly raise of PLN 202 and a back payment (to cover the difference between the pension received so far and the pension that should have been paid out) of PLN 12,786 on average.
  • receive an early retirement pension based on the old rules, awarded before 2013, and did not apply for a normal retirement pension before the decision of the Constitutional Court, and will do so in July 2020.
    - This change will benefit 11.2 thousand people.
    - They will receive an average monthly raise of PLN 1,487.

The proposed solution executes the decision of the Constitutional Court of 6 March 2019.

The government fixing detrimental changes introduced 7 years ago

In 2013, the pension calculation rules for people receiving an early retirement pension were changed by introducing a less advantageous solution, which involved the reduction of the basic amount of normal retirement pension by the amount of money previously received from early retirement pensions. Age groups which had reached the normal retirement age by 2013 were able to take advantage of the previous, more advantageous, pension calculation rules. Those born in 1953 did not get such an opportunity.

Thanks to the current proposal, all insurance holders born in 1953 and receiving an early retirement pension will be able to apply for eligibility for a normal retirement pension without a calculation mechanism that would reduce the basic amount by the total amount received from earlier pensions. This opportunity will be granted to insurance holders born in 1953 who had applied to the Social Insurance Institution (ZUS) for a normal retirement pension before the Court decision was issued (i.e. before 6 March 2019), as well as those who will make such an application for the first time.

Other favourable solutions for pensioners

We consistently strive to make life easier for senior citizens and improve their financial situation year by year.

  • Over the course of four years (2016-2020), minimum benefits for pensioners increased by 36% (from PLN 882.56 to PLN 1,200).
  • We have introduced the 13th pension: a permanent yearly benefit equal to the minimum pension (PLN 1,200 gross in 2020) for almost 10 million people.
  • We have introduced amount and percentage-based pension adjustment for old-age and disability pensions; in March 2020, all pensions increased by 3.56%, by no less than PLN 70 gross.
  • We have increased pensions by lowering the PIT from 18% to 17%, thanks to which pensioners gained ca. PLN 240 on a yearly average.
  • We have launched the ‘Mama 4+’ programme – an additional parental benefit for mothers (and, in certain cases, also fathers) who have reached the retirement age and raised at least 4 children, and have not been eligible for even minimum benefits before.
  • In 2017, the United Right (Zjednoczona Prawica) government lowered the normal retirement age, thanks to which it is now 60 for women and 65 for men.

Additional PLN 21 billion for the National Road Construction Programme

The government has decided that more money will be allocated to the construction of the S6 and S10 expressways. The increased road funds will benefit the polish economy, now emerging from the crisis brought about by COVID-19. The implementation of road construction projects also fits into the strategic investment plan proposed by President Andrzej Duda.

‘The President’s plan envisions an increase in funds for road infrastructure. These will mainly include investments along the S6 route and the critically important S10 expressway connecting Toruń and Bydgoszcz, in addition to several other roads across Poland,’ the Head of Government highlighted. ‘There was not enough money for these investments in the budget we took over after the PO-PSL government,’ the Prime Minister added.

S6 expressway

Additional funds of ca. PLN 9 billion will be allocated to the construction of the expressway.

  • Construction of the Tricity Beltway: 31.7 km, ca. PLN 2.2 billion.
  • Road construction at the Lębork – Bożepole Wielkie (DK 6) section: 22 km, ca. PLN 1.4 billion.
  • Construction of the Koszalin – Słupsk route: 46.2 km, ca. PLN 2.6 billion.
  • Construction of the Słupsk – Lębork route: 49.6 km, ca. PLN 2.9 billion.
  • The investments will commence around 2022.

S10 expressway

Additional funds of ca. PLN 2.8 billion will be allocated to the construction of the expressway.

  • Construction of the Toruń – Bydgoszcz route along with the South Toruń (Toruń Płd.) node: 50.4 km, PLN 2.8 billion.
  • The investments are to commence in 2023.

Other investments in roads

We will allocate a further PLN 9.8 billion the construction of other roads, including:

  • Construction of the S8 at the Wrocław (Magnice) – Kłodzko section –  commencement of works: 74.5 km, PLN 2.8 billion extra.
  • Construction of the S5 at the Bolków (S8) – Sobótka (S3) section – commencement of works: 50 km, PLN 2 billion extra.
  • Construction of the Brzesko – Nowy Sącz section of the 75 national road (DK75): 47.7 km, PLN 1.7 billion extra.
  • Construction of the S74 Przełom/Mniów – Kielce: 21.3 km, PLN 968 million extra.
  • Construction of the S19 Rzeszów – Barwinek, Babica (excluding the node) – Barwinek section: 74.9 km, PLN 800 million extra.
  • Construction of the Lublin – Lubartów section of the S19 (Lublin Rudnik/excluding the node – Lubartów Północ): 23.8 km, PLN 441 million extra.
  • Construction of the S19 Białystok – Lubartów; Choroszcz –  Ploski – Chlebczyn section: 128 km, PLN 356 million extra.
  • Construction of the S3 Troszyn – Świnoujście: 33 km, PLN 300 million extra.
  • S52 North Beltway of Kraków: 14.5 km, PLN 160 million extra.
  • Construction of the Łochów Beltway: 8.2 km, PLN 103 million extra.
  • Construction of the S7 Gdańsk – Warsaw, Płońsk – Czosnów section: 34.6 km, PLN 87 million extra.
  • Construction of the S1 expressway (former S69), Przybędza – Milówka section (bypass around Węgierska Górka) 8.5 km, PLN 21 million extra.

Financing for the National Road Construction Programme

Expenditure on the National Road Construction Programme will increase by PLN 21 billion after 2021, amounting to:

  • PLN 6.5 billion in 2022
  • PLN 15.2 billion between 2023 and 2025.

 


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