GN 01751.010 Overview of the Polish Social Security System
A. Overview of Polish Social Security benefits
Poland provides a wide range of benefits including retirement, survivors and disability benefits; one-time indemnity payments and benefits awarded as a result of work accidents and occupational diseases, and funeral grants through two major Social Security systems.
B. Description – KRUS and system under ZUS prior to January 1, 1999
1. The Polish system under KRUS covers:
men age 65 and women age 60 are eligible for old-age pensions if their old-age and disability pension insurance period is 25 years long.
funding and benefits are based on contributions and general revenue subsidies
all categories of KRUS benefits require worker contributions paid by quarter
2. The Polish system under ZUS prior to January 1, 1999:
all non-agricultural workers are covered, and date of birth determines whether pre-1999 or post-1998 rules apply in calculating retirement benefits.
regular retirement pension for insured persons who meet the length of coverage requirements: 25 years of coverage for males and 20 years of coverage for females at normal retirement age.
prior to 1999 employers made all Social Security contributions; from 1999, both employers and employees contribute to the Social Security system
mandatory employer and employee contributions are reported monthly
C. Description – New retirement system rules under ZUS effective January 1, 1999
The retirement benefits program under ZUS has two-tiers.
first tier – pay-as-you-go (PAYG), is based on theoretical defined contributions.
second tier is based on fully-funded, privately-managed individual account-defined contributions.