Poland's Bridging Pension System Faces Funding Overhaul Amid Eligibility Changes

Poland's system of "bridging pensions," which allows individuals to retire before reaching the standard retirement age due to physically demanding or hazardous work, has undergone significant changes. Previously, eligibility required proof of having worked in specific conditions before January 1, 1999, effectively making it a phasing-out system. However, a recent amendment that took effect on January 1, 2024, has removed this historical requirement.

This alteration means that individuals can now qualify for bridging pensions without demonstrating a long history of work in special conditions prior to the turn of the millennium. The change opens the door for significantly younger workers to access these benefits, raising questions about the system's long-term financial viability and its original intent as a temporary measure.

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I am not against discussing staggered pensions, but I believe it should be based on concrete solutions, not just a general slogan. On the other hand, I see greater potential in bridging pensions. In this context, it is also worth considering the financing of this system. If certain positions involve earlier termination of professional activity, perhaps they should be covered by a different level of contribution. Today, in practice, part of the costs associated with bridging pensions is borne by society as a whole. Perhaps another way of financing them should be sought.

Discussions are intensifying around the financing of these pensions. The head of Poland's Social Insurance Institution (ZUS) has indicated a willingness to discuss "staggered pensions" but sees greater potential in the bridging pension system. He suggests that roles associated with early retirement might warrant different contribution levels, implying that the current model, where societal contributions largely cover costs, may need re-evaluation. Experts note that a contribution rate of around 6% might be necessary for full system financing, a substantial increase from the current 1.5% rate for the Bridging Pension Fund.

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The issue of financing bridging pensions also appeared some time ago at the Social Dialogue Council. Calculations were presented then, which indicated that the contribution ensuring full financing of the system should be around 6 percent, which is significantly more than currently (now the rate of contribution to the Bridging Pension Fund is 1.5 percent of the assessment base; editor's note). However, there was no consensus at the time regarding such a significant increase in burdens.