In 2025, a significant recalculation of pensions is set to occur in Poland, aiming to rectify longstanding discrepancies that have affected retirees. This initiative primarily targets seniors who retired in June between 2009 and 2019, a group that has faced lower benefits due to unfavorable calculation methods used during that period.
Historically, June was deemed the worst month to retire, as only annual valorization of contributions was considered, neglecting more favorable quarterly growth rates. This led to a disparity in pension amounts, disadvantaging those who chose to retire during this month compared to their peers who selected other months.
Recognizing this injustice, the Polish government has taken steps to amend the situation. In 2021, changes were introduced to eliminate inequalities in pension calculations for future retirees. However, these adjustments did not extend to those who retired between 2009 and 2019, prompting the Constitutional Tribunal to highlight the issue.
As part of the upcoming reforms, the Ministry of Family has prepared a draft project that will allow affected pensioners to apply for a recalculation of their benefits. This new legislation is expected to come into effect on June 1, 2025, and will permit pensioners to submit applications for six months following the law's enactment.
Under the proposed changes, the recalculated pension amounts will be valorized, taking into account the applicable growth rates from the time the benefits were initially granted. This means that pensioners can expect their benefits to be adjusted not only to reflect the recalculation but also to include any applicable increases that have occurred since their retirement.
Looking ahead to March 2025, pensioners are also anticipating a scheduled valorization, which is projected to yield an increase of approximately 5.5%. For example, a pension currently set at 2,000 PLN gross would see a rise of 106 PLN, bringing the new total to 2,106 PLN gross after a 5.3% valorization.
It's worth noting that the valorization rates have fluctuated significantly in recent years, largely due to varying inflation rates. For instance, in 2023, the valorization rate was a staggering 14.8%, while in 2024, it was recorded at 12.12%. In contrast, the expected rate for 2025 marks a return to lower, single-digit increases, which have not been seen for quite some time.
The historical valorization rates over the years reflect these changes: in 2015, the rate was 105.37%; in 2016, it was 106.37%; in 2017, 108.68%; in 2018, 109.20%; in 2019, 108.94%; in 2020, it dropped to 105.41%; in 2021, it climbed again to 109.33%; in 2022, it peaked at 114.40%; in 2023, it was 114.87%; and in 2024, it was 112.12%.
In addition to the pension recalculations, the Social Insurance Institution (ZUS) is actively encouraging individuals who began working prior to 1999 to verify the completeness of their employment documentation. This appeal is particularly crucial as a lack of proper documentation can lead to an underestimation of pension amounts, even for those with lengthy work histories.
The introduction of individual insured accounts in ZUS in 1999 meant that previous employment periods are not automatically included in the pension system. Consequently, individuals who worked before this year should ensure that all their employment periods are well-documented. Essential documents include employment certificates and any other records that confirm employment and salary levels.
For those lacking such documents, ZUS recommends contacting former employers or their legal successors to check if the necessary documentation has been transferred to the appropriate archives. ZUS also offers assistance to help individuals locate missing documents. Although searching for these old records may be time-consuming, it is a worthwhile endeavor for those looking to optimize their pension benefits.
Once all required documents are gathered, individuals can submit a request for pension recalculation at their local ZUS branch. A well-prepared application, complete with all necessary documentation, can significantly influence the recalculation of benefits, allowing for adjustments even after a pension has already been awarded.
The upcoming changes in pension recalculation and the push for proper documentation are crucial steps in addressing the inequalities faced by many retirees in Poland. As the government moves forward with these reforms, it aims to ensure that all pensioners receive fair and adequate benefits reflective of their contributions and service.
