Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University

granted to unemployed women aged 58 and men aged 63 with 20/25 contributory and noncontributory
years, to persons dismissed for operational reasons and aged 50/55 (with 30/35
qualifying years, or with 35/40 years regardless of age), and to persons dismissed from
companies which are closing down with 34/39 qualifying years. The pre-retirement benefit
amounted to 80 per cent of the assessed pension level as of 1995, and to 90 per cent as of
1998. Recipients were not obliged to seek work. In April, 2004, more strict rules were
introduced. The benefits were lowered to a lump-sum payment, and a 6-month waiting
period was introduced during which the applicant has to seek work.
Third pillar pensions (individual and occupational) do not yet constitute an exit pathway
due to low coverage (Czepulis-Rutkowska 2003: 287). Only 915,000 Poles save in IKE, and
312,000 in PPE. Also the average payments into those funds are low (“KNF: Polacy za mało
odkładają na dodatkową emeryturę”, Gazeta Wyborcza 18.2.2008). Surveys of the AXA
corporation revealed that one third of respondents expect their future old-age pension to
exceed their current earnings, and only 37 per cent make additional savings or have such
intentions, compared to 80 per cent in the Czech Republic (“Porażka III filara…”, Gazeta
Wyborcza 18.2.2008).
Of firms which offer the opportunity of additional savings, only 57 per cent choose PPE,
mostly large firms (“KNF: Polacy za mało odkładają…”, Gazeta Wyborcza 18.2.2008).
Many firms still make use of the opportunity introduced in 1997 to invest seven per cent of
wages in life insurance which are then not liable to contributions (Zych 2006: 33).
Ignorance and corruption of firms and unfair acquisition practices of insurance agents have
in many cases not only not increased, but even decreased the amount of payments made into
those insurance schemes (ibid: 33-34). PPE, the new generation of occupational pension
schemes introduced in 2004, albeit rising quickly, still encompass a small share of
economically active persons (in 2002, it was 1.5%) and are mainly offered by big firms
located in economically viable regions, predominantly from the telecommunication sector,
financial services and utilities (Strzelecka 2002: 39). Therefore, PPE will not close the gap
in replacement rates in the new system (ibid; Szumlicz: 184).
Working pensioners were a frequent phenomenon during communism (Urbaniak 1998)
and are such nowadays (13.7% of retirees aged 50-69 years and the same share of disabled
of all ages are gainfully employed; Zgierska 2007: 4; GUS 2008: 169). Nowadays, old-age
and disability pensioners hired on a regular work contract are liable to contributions just as
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