„fourteenth Retirement” permanently? It's possible, there's a bill already

Decent social assistance for "weak" social groups such as persons with disabilities, guardians of such people, or pensioners should be obvious, there is no doubt. And although social aid can be different in our sad country (unfortunately mostly worse), a few years ago pensioners received support in the form of so-called "thirteenth pension’, introduced permanently. It seemed to be paid from 2021 ‘fourteenth pensions’ will only be a temporary addition. But I want it to change.

First, just a reminder. According to Act dated 9 January 2020 of an additional annual financial contribution to pensioners (Journal of Laws of 2022, item 2575) has been permanently introduced into the social security system annual payment of an additional annual cash benefit. That is, the so-called ‘thirteenth pension’.

It was paid to all pensioners, at the lowest pension in force since 1 March the year in which the additional annual cash benefit was paid. In turn in 2021, according to Act dated 21 January 2021 about another in 2021 additional annual cash provision for pensioners (Journal of Laws of 2022, item 2235), has been paid ‘fourteenth pension’.

This benefit, in full or in part, has been granted to all eligible persons, provided that their benefit does not exceed the amount 4,150.88 PLN.

The situation repeated in 2022, fourteenth pensions were granted to persons who on 24 August 2022 were entitled to benefits specified in the Act[1], and the amount of benefit received did not exceed the amount 4,188.44 PLN.

According to the Prime Minister of Poland, "fourteenth pension’ is to be introduced as a permanent grant of the project on 14 April 2023 Act on another additional annual cash provision for pensioners and pensioners (hereinafter: Project). Now. Article 1 The draft states that the Act lays down the conditions for acquiring the right to another supplementary annual cash benefit, hereinafter referred to as ‘additional benefit’, and the rules for its payment.

Who will be entitled to this "fourteenth pensions’?

According to the justification for the Project, the solution introduced by this Act will be applied to universal pensions, farmers, uniform services, bridge pensions, pre-retirement benefits and benefits, social pensions, teacher compensation benefits, parental supplementary benefits, cash benefits for civilian blind victims of war and war and military disability.

At the same time, at this moment, the Project does not include judges moving or transferred to a resting state or prosecutors at rest.

The amount of the additional benefit has been fixed under Article 3 Project. According to section 1, entitled persons shall have an additional benefit of:

the amount of the lowest pension in question under Article 85(2) Act dated 17 December 1998 on pensions from the Social Insurance Fund (Journal of Laws of 2022, items 504, 1504, 2461), applicable from 1 March the year in which the additional benefit is paid to persons whose amount of benefit, before deductions, deductions and reductions, does not exceed the amount 2,900 PLN,

the amount of the lowest pension in question under Article 85(2) Act dated 17 December 1998 on pensions from the Social Insurance Fund applicable from the date 1 March the year in which the additional benefit is paid, less the difference between the amount of the benefit, before deductions, deductions and reductions and the amount 2,900 PLN – for persons whose benefit, before deductions, deductions and reductions, exceeds the amount 2,900 PLN.

At the same time, if the amount of the additional benefit determined as referred to above is lower than 50 PLN, the additional benefit will not be granted. Additional benefits will not be granted to persons who have the right to benefits listed under Article 2 The project will be suspended on the last day of the month preceding the month of payment of the additional benefit.

What, in turn, for those with a family pension? According to Article 5 Project, to a family pension to which more than one person, will be entitled one an additional benefit which will be subject to a proportional breakdown by persons entitled to family pension.

If more than one person and at least one of which they will be entitled to a social pension, the supplementary family pension benefit will be divided according to the number of persons entitled to a family pension, excluding the person or persons entitled to a social pension.

A person or persons excluded from the number of persons entitled to a survivor's pension will be entitled to an additional benefit under the right to a social pension.

How will it be awarded “fourteenth pension’? This additional benefit will be granted on the basis of a decision. The month of payment of the supplementary benefit in a given year, having regard to the technical and organisational possibilities of payment of the supplementary benefit by pension authorities, will be determined by a regulation. Decisions on the supplementary benefit will be issued and the benefit paid by the competent authorities concerned under Article 2 Project.

The additional benefit is intended not to be included in the revenue listed in the Project’s rules. This will include revenue:

• referred to under Article 3(3)[2] Act dated 21 June 2001 on housing additives (Journal of Laws of 2021, item 2021; of 2022, items 1561, 2456),
• referred to under Article 8(3)[3] Act dated 12 March 2004 on social assistance (Journal of Laws of 2021, item 2268, as amended),
• referred to under Article 2(2)[4] Act dated 31 July 2019 a complementary provision for persons unable to exist independently (Journal of Laws of 2023, items 156, 535),
• referred to under Article 3(1)[5] Act dated 28 November 2003 on family benefits (Journal of Laws of 2023, items 390, 658).

Importantly, the amount ‘fourteenth pensions" will not be possible to deduct and execute.

According to Article 15 the proposed law provides for an amendment Act dated 26 July 1991 on personal income tax (Journal of Laws of 2022, item 2647, as amended), according to which another additional annual cash benefit will be excluded from defined income under Article 26(7e) Personal Income Tax Act[6]. According to the justification for the Project, the amount of the next additional annual cash benefit will not affect the rights of applicants for benefits, allowances, allowances, assistance or support.

In the explanatory memorandum to the Project, you can read the following sentences: It is important for the state's social policy to protect senior citizens from poverty and social exclusion.

Action taken by the Government is aimed at improving the financial situation of pensioners and pensioners, including in particular the poorest recipients.

Let us hope that the legislators will take this to heart and that the proposed legislation will indeed contribute to improving the financial situation of those in need, rather than just another uncovered electoral promise.

1. the monthly burden of income tax on individuals and the cost of obtaining income;
2. contributions to health insurance as defined in the provisions on public-funded health care and social security as defined in separate legislation;
3. the amount of alimony to other persons.

(a) taxable income on a specified basis under Article 27, Article 30b, Article 30c, Article 30e and Article 30f Act dated 26 July 1991 on personal income tax (Journal of Laws of 2022, items 2647, 2687, 2745; of 2023, item 28), less revenue expenses, personal income tax due, social security contributions not included in the cost of obtaining income and health insurance contributions,

(b) income from taxable activities under flat-rate income tax provisions on certain income generated by individuals,

(c) other non-taxable income under personal income tax rules:

• pensions provided for in the provisions on the provision of war and military disabilities and their families,
• This appropriation is intended to cover the following:
• cash, compensation allowance and energy lump sum as defined in the provisions on money provision and allowances for military substitute soldiers forced to employ in coal mines, quarries, uranium ore plants and construction battalions,
• the Kombatant supplement, the energy lump sum and the compensation allowance provided for in the rules on combatants and certain persons who are victims of war repression and post-war repression,
• the cash benefit provided for in the provisions on the provision of money to persons deported to forced labour and imprisoned in labour camps by the Third German Reich or the Union of Socialist Soviet Republics,
• energy lump sum, pensions and pensions received by persons who have lost their sight as a result of war activities in years 1939-1945 or explosions remaining after this war of dummies and explosions,
• invalidity pensions, amounts of supplies received by victims of war and members of their families, accident pensions of persons whose invalidity was created due to forced residence on robots in the 3rd German Reich in years 1939-1945, obtained from abroad,
• sickness benefits as defined in the rules on social insurance of farmers and in the social security system rules,
• non-refundable foreign aid received from governments of foreign countries, international organisations or international financial institutions from non-refundable aid granted on the basis of unilateral declarations or agreements concluded with those countries, organisations or institutions by the Council of Ministers, the competent minister or government agencies, including where such transfers are made through an entity authorised to distribute non-refundable foreign aid to the entities to which the aid is intended,
• claims on the employment relationship or on a scholarship of natural persons residing in the territory of the Republic of Poland who are temporarily abroad - in the amount corresponding to the equivalent of the allowances for business trips outside the country established for staff employed in the state or local budget area on the basis of Act dated 26 June 1974 - Labour Code (Journal of Laws of 2022, items 1510, 1700, 2140),
• money receivables paid to police officers, soldiers, customs officers and employees of military units and police units used abroad to participate in armed conflict or to strengthen the forces of the State or the Allied States, peacekeeping missions, actions to prevent acts of terrorism or their consequences, as well as money receivables paid to soldiers, police officers, customs officers and servants serving as observers in missions of peaceful international organisations and multinational forces,
• the cash due from the service relationship received during the candidate service by police officers, the State Fire Service, the Border Guard, the Government Protection Office and the Prison Service, calculated for the period during which they obtained income,
• revenue from members of agricultural production cooperatives for membership of agricultural production cooperatives, less social security contributions,
• child support,
• doctoral scholarships awarded on the basis of Article 209(1)(7) Act dated 20 July 2018 - Law on Higher Education and Science (Journal of Laws of 2022, item 574, as amended), sports scholarships awarded on the basis of Act dated 25 June 2010 sports (Journal of Laws of 2022, items 1599, 2185) and other social scholarships awarded to students,
• the amounts of allowances not subject to income tax on individuals received by persons performing social and civic duties,
• claims received for the rental of guest rooms in residential buildings located in rural areas on the farm of persons on vacation and obtained for the feeding of such persons,
• Secret education allowances specified in Act dated 26 January 1982 - Teacher's Card (Journal of Laws of 2021, item 1762; of 2022, items 935, 1116, 1700, 1730),
• income from business activity conducted under a permit in a special economic zone governed by the special economic zone regulations,
• cash equivalents for coal deputates as defined in the regulations on commercialisation, restructuring and privatisation of the State-owned company "Polish State Railways",
• free coal equivalents as defined in the provisions on the restructuring of coal mining in years 2003-2006,
• allowances provided for in the rules on the exercise of the mandate of a Member and Senator,
• revenue from the agricultural holding,
• revenue generated abroad by the Republic of Poland, minus, respectively, the income tax paid abroad by the Republic of Poland and contributions to compulsory social security and compulsory health insurance,
• pensions specified in the regulations on rural development support financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund and in the regulations on rural development support involving funds from the European Agricultural Fund for Rural Development,
• the maintenance advance specified in the legislation on the treatment of maintenance debtors and the maintenance advance,
• cash benefits paid in the event of failure to execute maintenance,
• material aid of a social nature under Article 90c(2) Act dated 7 September 1991 about the education system (Journal of Laws of 2022, item 2230) and the benefits in question under Article 86(1)(1-3) and 5 and Article 212 Act dated 20 July 2018 - Law on Higher Education and Science,
• amounts received on the basis of Article 27f(8-10) Act dated 26 July 1991 on income tax on individuals,
• cash benefits as defined in Act dated 20 March 2015 about anti-communist opposition activists and people being repressed for political reasons (Journal of Laws of 2021, item 1255; of 2022, item 2461),
• parental benefit,
• maternity allowance referred to in the rules on social insurance for farmers,
• Unemployment grants financed by the European Union or the Labour Fund, regardless of the person who pays them,
• income tax revenue on the basis of Article 21(1)(148) Act dated 26 July 1991 personal income tax less social security contributions and health insurance contributions,
• income tax revenue on the basis of Article 21(1)(152) point (a), b and d and point 153 point (a), b and d Act dated 26 July 1991 on income tax on individuals, and Article 21(1)(154) that Act in the fields of revenue from the business relationship, employment relationship, overlay work, cooperative employment relationship, from the contract of the order in question under Article 13(8) Act dated 26 July 1991 personal income tax, maternity allowance referred to in Act dated 25 June 1999 social security cash benefits for sickness and maternity, minus social security contributions and health insurance contributions,
• income tax revenue on the basis of Article 21(1)(152) point (c), point 153 point (c) and point 154 Act dated 26 July 1991 on income tax on natural persons from non-agricultural economic activities taxed according to the rules laid down under Article 27 and Article 30c that law, minus social security contributions and health insurance contributions,
• revenue from non-agricultural economic activities taxed in the form of a lump sum on recorded revenue referred to under Article 21(1)(152) point (c), point 153 point (c) and point 154 Act dated 26 July 1991 on personal income tax, established in accordance with Article 5(7a)