On Friday, the Sejm passed a law on another additional annual benefit for retirees. It is a bill that allows the payment of the so-called 14. permanent pension. The bill now goes to the Senate.
436 deputies voted in favor of the law on an additional annual pension for pensioners, 12 deputies were against, 6 abstained.
Under the law passed by the Sejm, the 14th old-age pension is payable to beneficiaries in the amount of: the amount of the lowest old-age pension, applicable from 1 March of the year in which the next additional annual cash benefit is paid – for persons whose basic allowance before deductions, deductions and discounts does not exceed PLN 2,900; the amount of the lowest old-age pension, applicable from 1 March of the year in which the next additional annual cash benefit is paid, less the amount of the difference between the amount of the basic benefit before deductions, deductions and reductions and the amount of PLN 2,900, the amount of which is the basic allowance before deductions, deductions and discounts, exceeds PLN 2,900.
The law provides for the possibility of setting a higher amount of the 14th retirement pension. By national ordinance no later than 31 October of a given year, the Council of Ministers may determine a higher amount of the next additional annual payment in cash than the amount of the lowest retirement pension. It was also proposed that the amount of the 14th retirement pension should be at least PLN 50. If the amount of the next additional annual benefit is less than PLN 50, this benefit will not be awarded.
According to data from the Ministry of Labor and Social Policy, 6.8 million pensioners will receive the full fourteenth pension, and 1.5 million people – reduced on a “one zloty for one zloty” basis.
Who is entitled to “fourteen”?
“Fourteen” is not available for persons whose entitlement to benefits has been suspended on the last day of the month preceding the month of payment of the next additional annual benefit. This means that persons whose entitlement to the basic benefit has not been suspended on the last day of the month preceding the month in which the next additional annual cash benefit is paid, are entitled to the next additional annual cash benefit and the amount of this benefit does not exceed the sum of PLN 2,900 and the lowest old-age pension applicable in the year in which the next additional annual allowance is paid, less PLN 50 (in 2023 it will be PLN 4,438.44).
In the event of concurrence of entitlement to more than one benefit, the sum of these simultaneously paid benefits will be used to determine the entitlement and the amount of the next annual supplementary benefit in cash. The beneficiary is entitled to an additional annual payment in cash.
An additional annual cash benefit will also be paid for a survivor’s pension to which more than one person is entitled. This benefit is divided proportionally among the beneficiaries of a survivor’s pension. If more than one person is entitled to a survivor’s pension and at least one of them is entitled to a social pension, the next annual supplementary payment in cash from the survivor’s pension is divided among the number of persons entitled to a survivor’s pension, excluding the person or persons entitled to a social pension. A person or persons who are excluded from the number of persons entitled to a survivor’s pension are entitled to a further additional annual cash benefit under the entitlement to a social pension.
It was proposed that the next annual supplementary payment should be granted ex officio on the basis of a decision. The Council of Ministers determines by regulation no later than 31 October the month of payment of the next annual supplementary payment in cash in a given year.
Decisions on the 14th pension are issued and paid for by the competent pension authorities. In case of overlapping entitlement to benefits paid by two authorities, decisions are made and an additional annual benefit is paid by the social insurance institution.
tkwl/PAP
Source: wPolityce
Emma Matthew is a political analyst for “Social Bites”. With a keen understanding of the inner workings of government and a passion for politics, she provides insightful and informative coverage of the latest political developments.