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Internship pensions. Sejm Analysis Office on the Left’s project

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The introduction of seniority pensions according to the Left’s project would increase the risk of retirement poverty, especially among women – stated in the Regulatory Impact Assessment prepared by the Sejm Analyzes Office.

Two bills regarding introduction pensions internship were referred to the Parliamentary Committee for Social Policy and Family at the beginning of February. One is a civic project, the other was prepared by the Left.

Both regulations concern the introduction of a seniority pension into the Polish legal system for people who have worked for 35 years (women) or 40 years (men). The authors of the projects emphasized that this solution is in line with the expectations of people who, due to loss of strength resulting from a long period of paid work, are unable to continue working until they reach retirement age.

Risk of retirement poverty

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The recently published OSR for the Left’s project indicates that most people who would retire on a seniority pension would receive a benefit close to the minimum pension.

“Thus, the proposed change increases the risk of retirement poverty, especially among women, who statistically live much longer than men, and could retire already at the age of fifty and then be forced to live on funds for another 20-30 years or longer. close to the amount of the minimum pension,” it was written.

“Although the proposed regulations only create the possibility, not the obligation, to retire on a seniority pension, as practice shows, most people retire exactly when they reach retirement age or within a year from that date. It can be expected that the same would also be the case with seniority pensions – most people would switch to this benefit as soon as they became eligible or within 12 months from that moment,” it added.

The threat of an inflationary spiral

The Sejm Research Office also indicates that the proposed change would probably lead to a sharp reduction in the number of people in the labor market, which, given the already existing shortages of workers, would also mean the need to offer higher remuneration rates (in order to take over employees from the competition), which may lead to an inflationary spiral.

“Although some people who would have retired will continue to work, but it will often be part-time work or on the basis of a mandate contract. Often, however, taking advantage of an early retirement pension will lead to permanent deactivation of people who are currently active on the labor market,” it added.

The proposed change may also hinder the implementation of one of the milestones included in the National Reconstruction Plan, which assumes raising the effective retirement age.

Discussion in the Sejm

During the first reading in the Sejm, Tadeusz Tomaszewski (Left Wing), presenting the parliamentary bill, noted that seniority pensions are a very important element of building systemic solutions. He added that the Left has been seeking this for 14 years. He expressed hope for the active participation of the government in the work on regulations in the committee, especially regarding the financing of this solution.

In club speeches PiS MP and former Deputy Minister of Family and Labor Stanisław Szwed thanked all citizens who signed the project. He declared support for this solution. Iwona Kozłowska (KO) pointed out that seniority pensions will be lower than those under general principles, therefore other forms of support for older people should also be provided.

Rafał Komarewicz (Poland 2050 – Third Way) asked PiS MPs why seniority pensions were not introduced during the rule of the United Right, if they support them now. Referring to the provisions of the project, he emphasized that the exact costs of this solution should be considered. – We should continue working on this project – he said.

Agnieszka Kłopotek (PSL – Trzecia Droga) said that in 2016, PSL was collecting signatures for a project of changes regarding seniority pensions. – Early retirement does not necessarily mean the end of work. There is nothing stopping you from continuing to work, even part-time, and receiving a seniority pension at the same time, Kłopotek noted.

Deputy Minister of Family, Labor and Social Policy Sebastian Gajewski, responding to the MPs’ doubts, assured that the ministry would present the financial, technical and organizational consequences of introducing seniority pensions during the work of the committee.

Minister for Senior Policy Marzena Okła-Drewnowicz accused PiS MPs of being slow to proceed with earlier projects on this matter. – Over the last 8 years, you have not introduced seniority pensions, even though you had them as your election slogan – she emphasized.

– We will work on this project to meet the expectations of people who have worked very hard in their lives – said Okła-Drewnowicz.

Main photo source: ashleygeo / Shutterstock.com

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