You do not request to wait until the statutory retirement age to receive benefits from ZUS. People over 50 can number on a monthly transfer of up to PLN 4000. This is about compensation – support for people who, due to the particularities of the profession, have previously finished their professional activity. Who can receive them, and what conditions must be fulfilled? Explain.
What is compensation?
Compensation benefit This is simply a form of financial support for a peculiar professional group, which completed work before reaching the retirement age, but has been active for many years. This mechanics works on a akin basis to the alleged bridge and constitutes type of ‘atrial’ pension.
His wage is handled Social Insurance Institution (ZUS). Importantly, the appropriations are paid monthlyuntil the right to a general pension has been acquired.
Who's it meant for?
Compensation is not widely available. Only for teacherswho, by reason of the nature of their work and early start of their careers, frequently end their professional activity before reaching retirement age.
The conditions to be met include, inter alia:
- completed age: Minimum 55 years for women and 60 years for men,
- at least 30 years of contribution and non-contributory periodof which at least 20 years of teaching,
- Full-time employment in school, kindergarten or educational establishmentconducted by public authorities,
- termination of employment at its own request or due to the school's liquidation.
It should be stressed that only teachers employed on the basis of Teacher Cards, not a civilian contract or another forms of employment.
How much can you get?
The compensation allowance is calculated as in the case of a pension. ZUS takes into account:
- valued amount of pension contributions collected in the insured account,
- Initial capital,
- average life expectancy, according to GUS plates.
The data provided by the institutions show that compensation can be up to PLN 4000 gross per month. In practice this means that many people receive transfers at a level close to the national retirement average, but by far before the Pension Act provides for.
When and how to apply?
The application for compensation benefit shall be submitted to the Social Insurance Institution. It can be done:
- personally in the nearest ZUS facility,
- via mail,
- Electronic via the PUE ZUS platform.
The application shall be accompanied by supporting documents:
- employment in education,
- contribution and non-contributory periods,
- how to resolve the employment relationship.
The decision granting the ZUS benefit should be issued within the time limit up to 30 days from submitting a complete application.
Is compensation taxed?
Yeah, like retirement, the compensation benefit is taxable and there are contributions to wellness insurance. However, after deductions, net amount inactive remains high, and for many teachers can supply real financial safety during the pre-retirement period.
Why specified support?
The specificity of the teacher's profession, stress, work and early start of work make many people in this group is incapable to work until the age of 60 or 65. Compensation is simply a form of designation for their work and ensures the liquidity of income during the transitional period before retirement.
This solution has been in operation in Poland for years and remains an crucial part of the social safety strategy – although many people do not realize its existence or the anticipation of utilizing it.
What's next?
Discussions about the extension of compensation rights to another professions – specified as nurses or social workers – are cyclical, but so far no regulations have entered into force. At present, with the ever-increasing retirement age and the drop in the number of teachers in schools, the subject may return to public debate again.
For teachers who plan to complete work, it is worth considering making a request for this provision in good time – so that there is no break in income.
More here:
Over PLN 4000 with ZUS before retirement. Who gets a compensation?
