The social safety strategy contains mechanisms that fewer future and current pensioners know about. 1 of them is simply a anticipation that can actually translate into thousands of gold added to our service over the years. This is not about complex financial operations, but about 1 simple act: submission to Social Insurance Institution Request for recalculation of first capital. For many people who started their careers before the 1999 pension reform, this may be the most crucial paper they will always deposit with the Social safety Office. This is an chance to correct the past of our working life and recover the money that we legally owe, and which we may not even have known existed.
What is first capital and why is it so crucial?
To realize how large the game is, you gotta go back to January 1, 1999. Then a major improvement of the pension strategy came into force in Poland. From that day on, each of us has an individual account in ZUS, to which our contributions are paid. But what about years of work before that date? This is why the institution was created Initial capital.
Initial capital is nothing another than the amount of social safety contributions created by ZUS for working periods prior to 1999. It is simply a virtual evidence that underpins our future retirement. The higher the first capital, the higher the basis for calculating the final benefit. In practice, this means that all proven year of work and all documented wage before the improvement has a direct translation of the monthly pension that we will receive until death. The problem is that erstwhile calculating the capital for the first time, ZUS was based solely on the papers it had at the time. And these were frequently incomplete.
Who and erstwhile can apply for a recalculation? Key reasons
The right to apply for conversion of first capital shall be granted to any individual who has fresh evidence that may affect his or her amount. Most importantly, there is no time limit for the submission of specified an application. This can be done both before retirement and at any time of its collection.
Here are the most common situations that are the basis for recalculation of capital:
- Finding fresh pay documents: That's the most common and profitable reason. Many people, after years, find forgotten papers specified as:
- Work certificates with information on earnings.
- Employment and wage certificates (print ZUS Rp-7).
- Wages or employment contracts with specified remuneration.
- Entries in old insurance cards.
If the papers found confirm higher earnings than those accepted by ZUS for the first calculation, the capital conversion is almost certain.
- Documenting the omitted contribution and non-contributory periods: ZUS may not have included all years of our activity. It is worth looking for evidence of:
- Periods of workwhich have not been previously reported.
- Non-contributory periods, which besides influence the amount of capital specified as higher education (in 1 direction), parental leave or military service.
One proposal in practice. What is the step-by-step procedure?
The process is much simpler than it might seem. The full procedure comes down to 3 steps:
Step 1: Collection of documentation
It's a crucial stage. Collect all new papers not previously presented in ZUS. We stress: the submission of an application without fresh evidence will not have any effect.
Step 2: Fulfilment of the application
Complete the form ZUS ECP (Introductory Capital Application). The form is available in ZUS facilities and on the website of the Department. It can besides be submitted electronically via the Electronic Services Platform (EUZUS).
Step 3: Submission of papers in ZUS
The completed application together with the originals (or certified copies) of the fresh papers must be submitted to the nearest ZUS facility. After receiving the documentation, the plant will re-examine and issue a fresh decision. If the capital is increased and we are already receiving a pension, the Social safety Office will automatically number its amount from the period in which we applied.
What “thousands of gold” is it? Real savings
Speaking of "thousands of gold to be recovered", we do not mean a one-time return. It's about permanent increase in monthly pension. Even a seemingly tiny increase, accumulated in time, creates immense amounts.
Example: Let us presume that thanks to the papers found, ZUS added 2 years of work with comparatively good remuneration. Our first capital increased adequate that the monthly pension was increased by 250 zł.
- On a yearly basis this gives savings of: 250 PLN x 12 months = PLN 3 000.
- In the 10 years of retirement this amount increases to: PLN 3,000 x 10 years = PLN 30 000.
- With an average retirement life expectancy, this sum can scope 50,000 PLN and more.
It's real money that, alternatively of going into our pocket, can always stay in the strategy just due to the fact that we didn't spend 1 afternoon looking at old documents.
The recalculation mechanics reveals the fundamental fact about the pension system: ZUS is not a detective institution. Calculates the benefit on the basis of papers to be provided to him. The work for gathering and presenting a full professional past lies with us – insured people.
Many Poles come out of the incorrect presumption that "ZUS has everything". Meanwhile, data from the 1970s, 80s or 90s were frequently incomplete and the company archives were destroyed or destroyed. That is why it is so crucial to become the archivist of your own life. It is worth taking time to talk to your family, search the attic, basement and old closets. Any “paper” found – work certificate, contract, card – may be a goldweight. It's not looking for a gap in the system, it's investigating your reasonably developed rights. This is 1 of the fewer situations where the past can improve our financial future in specified a direct and measurable way.
Continued here:
Thousands of gold to be recovered from ZUS. 1 application can rise your pension.
