More subsidies, fewer contributions: ZUS faces growing strain

Poland's social security system, ZUS, is increasingly functioning as a conduit for tax-funded transfers rather than a pure social insurance scheme, according to an analysis in Rzeczpospolita. The system, likened to a refrigerator where various benefits are stored, now includes allowances, compensations, and additional payments that have a loosening connection to social insurance principles.

The core principle of insurance, that contributions create entitlement to benefits, is being eroded as ZUS increasingly manages funds financed by taxes. While ZUS can disburse these funds, the article argues this should not alter the fundamental nature of the system. These budget-funded transfers, even when processed through ZUS, remain distinct from insurance-based benefits.

A new proposal to subsidize contributions for artists, estimated to cost around 375 million zł in its first full year, exemplifies this trend. While the cost is not prohibitive for the budget, the mechanism raises questions. The subsidy is not a contribution from the artist but a state subsidy accounted for as a contribution. This resembles the logic of the Church Fund, where the budget supports a specific group identified by profession and income.

The article points out the difficulty in defining who qualifies as an 'artist' for such subsidies, contrasting clear categories like clergy with the ambiguity surrounding artists. While a pianist or writer might be easily recognized, the eligibility of a luthier or an economist who writes opinion pieces is less clear. A 145-person commission is proposed to evaluate applications, with smaller teams making final decisions, raising concerns about potential disputes and future claims, such as from influencers seeking similar benefits based on social media metrics.

The author questions why certain irregular incomes of creators warrant support while others do not. The piece also touches upon broader ZUS reforms, including proposals to equalize retirement ages for men and women and to offer 'extra points' for parenthood. The article suggests that if the state wishes to support specific groups like artists or parents, it should do so transparently through direct budget allocations for cultural or family policies, rather than through complex and potentially distorting mechanisms within the ZUS system.