Early retirement and compensation as a result of the Constitutional Tribunal’s ruling of June 4, 2024 is a hot topic for many pensioners. For them, the decision could mean as much as tens of thousands of zlotys to be recovered from ZUS. How to prepare the application and documentation? We explain everything below.
Table of Contents
- What Does the Constitutional Tribunal’s Ruling from June 2024 Change?
- Who Can Claim Compensation for Early Retirement?
- How to Apply for a Higher Pension After the Constitutional Tribunal’s Ruling?
- Application for Early Retirement Compensation
- Compensation Amounts for Early Retirement
- Is It Worth Applying for Early Retirement Compensation?
- Early Retirement Compensation – Summary
- FAQ: Early Retirement Compensation
What Does the Constitutional Tribunal’s Ruling from June 2024 Change?
On 4 June 2024, in case no. SK 140/20, the Polish Constitutional Tribunal ruled that Art. 25(1b) of the Act of 17 December 1998 on Pensions and Disability Benefits from the Social Insurance Fund, insofar as it applies to individuals who applied before 6 June 2012 for one of the pensions listed in Art. 25(1b) and had not yet reached the retirement age, is inconsistent with Art. 67(1) in conjunction with Art. 2 of the Constitution of the Republic of Poland.
The challenged provision introduced a rule according to which – for insured persons who, based on the provisions mentioned in the article, received a pension before reaching the statutory retirement age and then submitted an application for a statutory retirement pension – the basis for calculating the old-age pension is reduced by the amount constituting the sum of the old-age pensions received in the amount before deduction of the advance payment for personal income tax and health insurance contributions.
Before the contested provision came into effect on 1 January 2013, receiving a pension before reaching the statutory retirement age did not reduce the amount of the statutory retirement pension available upon reaching retirement age. In some cases, it could even increase its amount. The latter an insured person receiving a pension listed in Art. 25(1b) of the Act applied for a statutory retirement pension after reaching the retirement age, the higher the pension could be.
“The Tribunal held that the case involved a violation of the principle of citizens’ trust in the state and its legal system. Insured individuals who chose to receive an early retirement pension were not aware, based on the then-applicable legal framework, of the legal consequences it could have on their future entitlements under the statutory retirement pension system. In particular, they could not have foreseen that retiring before reaching the statutory retirement age would result in a reduction of their accumulated pension capital by the amount of benefits received. They did not expect that the payment of retirement benefits would affect the method of calculating their statutory retirement pension. Only those who opted for early retirement after the amending Act’s publication (i.e. 6 June 2012) could expect such consequences. Only from that moment could the insured become familiar with the new regulations.”
According to the Constitutional Tribunal, the claimant, like any other person who applied for early retirement before 6 June 2012 (i.e., before the publication of the Act introducing the contested provision), could not have foreseen the consequences imposed by the newly enacted regulations on exercising the right to early retirement benefits. In the Tribunal’s view, such legislation does not fall within the framework established by Art. 67(1) in conjunction with Art. 2 of the Constitution of the Republic of Poland.
Thanks to this ruling, pensioners who opted for early retirement can seek compensation for reduced pensions. The case mainly concerns those who retired early under previous, unfavourable regulations. The ruling’s key significance is granting financial compensation for unfairly calculated benefits. It introduced the obligation to recalculate pensions and pay the difference to eligible individuals.
Who Can Claim Compensation for Early Retirement?
In connection with the judgment of the Constitutional Tribunal of 4 June 2024, file no. 140/20, the following may apply for compensation for early retirement:
- women born between 1949 and 1959 (excluding those born in 1953) and
- men born in the years 1949-1954 (excluding those born in 1953),
These individuals must have taken early retirement before 6 June 2012 and later applied for a statutory pension.
Therefore, only those born after 31 December 1948, who received early retirement benefits under previous rules and then switched to a statutory pension, are eligible.
What is important, the scope of the Constitutional Tribunal’s ruling of 4 June 4 2024, does not cover those born in 1953. This is because a ruling was already issued in their case by the Tribunal on 6 March 2019, in case no. P 20/16.
How to Apply for a Higher Pension After the Constitutional Tribunal’s Ruling?
retEligible individuals may request the Social Insurance Institution to reopen proceedings under Art. 190(4) of the Constitution. They can refer to the Constitutional Tribunal’s ruling of 4 June 2024, case no. SK 140/20. A Tribunal ruling declaring a normative act unconstitutional, if it was the basis for a final administrative decision, allows reopening proceedings under relevant legal provisions.
According to the Social Insurance Institution, the authority will deny reopening of proceedings. The reason for that is the lack of publication of the Constitutional Tribunal’s ruling in the Journal of Laws. However, this does not preclude further legal actions. You can appeal against the Social Insurance Institution’s decision to deny reopening the case. The appeal may be filed with a common court where individuals can pursue their rights.
Below is a step-by-step guide on how to obtain compensation for early retirement.
| Step 1: Collect the necessary documents | To apply, you must prepare full documentation regarding your retirement pension, in particular: – Social Insurance Institutiondecisions regarding early retirement; – Benefit calculation documents; – Any documents showing changes in pension amounts |
| Step 2: Submit an application to the Social Insurance Institution | The application should be submitted to the nearest ZUS branch or via the PUE ZUS platform. |
| Step 3: Appeal against the decision of the Social Insurance Institution | If ZUS rejects the application, the next step is to file an appeal with the Social Security Court. Remember that the deadline for filing an appeal is one month from the date of receiving the decision. In the appeal, it is advisable to refer to the Administrative Procedure Code and the Act on Pensions and Disability Benefits. |
Application for Early Retirement Compensation
Below we present a sample application to ZUS regarding reopening the proceedings.
………………………………………………………………………
(place and date)
Applicant:
…………………………………………………………………….
…………………………………………………………………….
PESEL …………………………………………………………
(Personal ID Number)
Social Insurance Institution (ZUS)
Branch in ……………………………………
………………………………………………………..
………………………………………………………..
Application for Reopening the Proceedings
In reference to the Constitutional Tribunal’s ruling of 4 June 2024 (case no. 140/20), according to Art. 145a of the Administrative Procedure Code of 14 June 1960, I hereby request the reopening of proceedings that concluded with the decision on pension indexation dated ………………………………………….., reference number …………………………………., by recalculating my pension entitlement.
This request is based on the unconstitutionality of Art. 25(1b) of the Act on Pensions and Disability Benefits from the Social Insurance Fund (17 December 1998).
Therefore, I request reopening of the proceedings and recalculating my pension.
Sincerely,
……………………………………………………
Compensation Amounts for Early Retirement
According to ZUS estimates, the average monthly pension increase is 1 191 PLN, while the average compensation amount is 64 075 PLN.
According to experts, the amount of the benefit depends on the following factors:
- Number of years receiving early retirement benefits;
- Amount of originally calculated benefits;
- Difference between reduced and standard benefits.
Is It Worth Applying for Early Retirement Compensation?
The benefits of filing an application for compensation for early retirement include:
- Financial compensation for losses. Submitting an application gives a chance to recover lost funds.
- Increasing future benefits. Many individuals can have their benefits recalculated, positively affecting their future payments.
- Social justice. The ruling aims to restore equal rights for those negatively affected by unfair regulations.
Early Retirement Compensation – Summary
The Constitutional Tribunal’s ruling of 4 June 2024 is a breakthrough for thousands of retirees who have suffered financial losses due to unfair pension regulations. Taking action now by submitting an application to ZUS can bring financial benefits.
If you need help recovering your rightful compensation, our team of lawyers is here to assist you. Contact us today to learn how we can support your claim.
FAQ: Early Retirement Compensation
What does the Constitutional Tribunal’s Judgment of 4 June 2024 change?
The Tribunal ruled that reducing the statutory pension base by the sum of early retirement benefits is unconstitutional. As a result, individuals who retired early before 6 June 2012, can seek financial compensation for unfairly reduced benefits.
Who Can Apply for Compensation?
Eligible individuals include:
-women born between 1949 and 1959 (excluding 1953) and
-men born between 1949 and 1954 (excluding 1953).
This applies to those who received early retirement benefits before 6 June 2012 and later applied for a statutory pension.
Why Are Those Born in 1953 Excluded?
They were covered by a previous Constitutional Tribunal ruling issued 6 March 2019 (case no. P 20/16).
What Documents Are Required?
Applicants need:
– previous ZUS decisions on early retirement,
– benefit calculations,
– and documents confirming changes in benefit amounts.
Where to Submit the Application?
Applications can be submitted at the nearest ZUS office or via the PUE ZUS platform.
What If ZUS Rejects the Application?
If ZUS denies reopening the case, an appeal can be filed with a common court. The deadline is one month from the date of receiving the decision.
What are the Steps to Obtain Compensation?
Gather the necessary documents, submit an application to ZUS, and appeal in court if denied.
How Much Can Be Recovered?
The estimated average compensation is 64 075 PLN, with a monthly pension increase of 1 191 PLN. The final amount depends on the years of early retirement and the difference between reduced and standard benefits.
Why Apply for Compensation?
It allows the recovery of lost funds, increases future benefits, and restores social justice.
Is Legal Support Necessary?
It is not mandatory, but a lawyer increases your chances. Professional support prevents formal errors and speeds up the process.