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Friday, June 21, 2024

Indexation of ZUS capital 2024. We know what increases

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We are facing a high indexation of pension capital. It is expected to be 14.9 percent. The funds collected at the Social Insurance Institution affect the amount of future benefits.

Pension and labor market expert Oskar Sobolewski drew attention to the high valorization of pension capital on social media.

“This year, we will have a high indexation of the account and sub-account in ZUS. Higher than that made in 2023. The indexation is important for every person who has funds in an account or sub-account in ZUS,” we read in the expert's entry.

He pointed out that it is from these funds that it is paid pension.

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In 2024, the indexation of pension capital will amount to 14.9 percent, and subaccounts – 9.9 percent.

Capital indexation in ZUS

Saved on accounts and subaccounts in ZUS the funds are the basis for calculating the amount of the pension after reaching retirement age.

As ZUS states on its website, the indexation of funds accumulated on the insured's accounts and subaccounts begins every year on June 1.

“The funds then increase by a specific percentage. The amount of account indexation depends on inflation (increase in prices of goods and services) and on the written contributions (increase in wages and number of insured persons) from the previous year. In turn, subaccount indexation is a derivative of the GDP growth dynamics for the last 5 years.” – explains the Department.

After the indexation is completed, ZUS annually prepares information on the insured person's account balance (IOSKU). Information about our funds will be available on the ZUS Electronic Services Platform.

ZUS sub-account

ZUS maintains a sub-account for all insured persons born after December 31, 1948 and before January 1, 1969 – if they are members of an open pension fund (OFE) and for insured persons born after December 31, 1968, regardless of whether they belong to OFE or not.

The subaccount is part of the individual account of every insured person with ZUS who has registered for insurance at least once, e.g. when taking up a first job.

Unlike the funds accumulated in an individual ZUS account, those in the sub-account (just like those from OFE) are subject to division, for example in the event of the death of the person who owns the sub-account.

Main photo source: Margy Crane/Shutterstock

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