Changes in Insurance: New Periods for Receiving Benefits and the Issue of June Pensions.

On 24 June, the Sejm passed an act amending the Act on the Social Insurance System and certain other acts. The draft was submitted in May this year by the Minister of Family and Social Policy.

The government aims to streamline the social insurance system. The amendment introduces, among other things, uniform solutions regarding the granting and payment of benefits, as well as improvements to the functioning of the Social Insurance Institution (ZUS). The act provides for changes concerning the rules of social insurance coverage, entitlement to benefits, service improvements, and the streamlining of contribution payers’ responsibilities and settlement processes. The new measures are intended to positively affect the coherence and quality of the insurance system.

Key changes

• An obligation was introduced for contribution payers and insured persons to provide ZUS with the data necessary to determine entitlements and the amount of benefits under sickness insurance;
• The issue of so-called “June pensions” (lack of quarterly indexation and consequently lower benefits for those retiring in June) was resolved. Pensions will be calculated as in May, if this proves more beneficial for the insured person;
• Changes were made concerning payments for new beneficiaries who acquire entitlements from 1 January 2022. It introduces the principle that cash payments (via a postal operator) and bank transfers will be treated equally, without preference for either method;
• A provision was introduced allowing applications for a disability pension if the incapacity arose during periods of receiving care benefits for which no insurance contributions were required, or no later than within 18 months from the end of such periods;
• New rules were introduced for combining periods of incapacity to work into a single sickness benefit period (including both uninterrupted periods and those with breaks no longer than 60 days, regardless of whether the incapacity was caused by the same or a different reason);
• The period during which sickness benefit can be collected after insurance coverage ends was shortened to 91 days;
• A five-year limitation was introduced for submitting corrections to insurance declarations from the date the contributions became due;
• The rules on the frequency of submitting applications for the re-determination of benefit amounts by retired persons continuing employment were standardised;
• An obligation was introduced for all contribution payers to register on the Electronic Services Platform (PUE) from 1 January 2023;
• ZUS was granted the ability to cancel, defer or grant instalment relief for civil law receivables;
• Procedures for granting entitlement to the parental supplementary benefit were simplified;
• ZUS will gain access to the electronic central register of work permits for foreigners.

The Sejm rejected opposition amendments that would have enabled the recalculation of June pensions under the new rules for individuals who acquired pension entitlements in June between 2009 and 2019. However, the length of the sickness benefit period during the insurance period will remain unchanged – it will still generally amount to 182 days (270 days in the case of incapacity during pregnancy or due to tuberculosis). The period of receiving sickness benefit after the end of insurance coverage will, however, be shortened – it has been established that it may not exceed 91 days.

The amendment also introduces an obligation for all contribution payers to register on the Electronic Services Platform (PUE) from 1 January 2023.

The new solutions will enter into force 14 days after their publication in the Journal of Laws, with the exception of certain provisions which will take effect on different dates.