Mixed pension – who is this benefit for?

The pension system in Poland was thoroughly reformed with the changes that took effect on January 1, 1999, which led to a several‑year transitional period. It was during this time that some insured individuals gained the right to a benefit known as the mixed pension. Although today it applies only to a small group of people, it still raises many doubts – particularly regarding calculations, the impact of pension funds (OFE), and ongoing constitutional disputes.

What Are Mixed Pensions and Why Were They Introduced?

The institution of mixed pensions was introduced as part of a legislative compromise. It accompanied the comprehensive reform of the pension system that entered into force on 1 January 1999. Its main purpose was to ease the transition. It helped move from the old pension system to new benefit calculation rules.

The legislator was aware that this approach could be problematic. Subjecting people approaching retirement age exclusively to the new rules could lead to a significant reduction in benefit levels. For this reason, the legislator introduced transitional solutions, including mixed pensions.

The goal of this solution was to:

• Protect the interests of people nearing retirement age who worked mostly under the old pay-as-you-go system.
• Prevent a sudden reduction in pension benefits resulting from the new rules;
• Ensure a gradual phase-out of the old pension system rather than replacing it in one step;
• Ensure pension system continuity and predictability for those affected by the reform.

One of the key elements of this transitional period was the mixed pension. Its structure combines two methods of calculating the benefit:

• partly according to the so-called old rules, based on insurance periods and earnings,
• partly according to the new rules, based on accumulated and indexed contributions.

Mixed pensions applied to persons who reached retirement age in the years 2009–2014. The legal basis for this solution is Art. 183 of the Act of 17 December 1998 on Pensions and Disability Pensions from the Social Insurance Fund (consolidated text: Journal of Laws 2024, item 1631). It provided for determining the benefit in proportions depending on the year in which retirement age was reached.

Old-System Pension and New-System Pension – Key Differences

To understand mixed pensions, one must distinguish between the two benefit calculation models:

• Pension under the old rules – it depends on insurance periods and the level of earnings. It includes the use of a base amount and percentage indicators.
• Pension under the new rules – it is calculated based on indexed contributions and initial capital, divided by the average further life expectancy.

A mixed pension combines both of these mechanisms within a single decision issued by the Polish Social Insurance Institution (ZUS).

Who Is Entitled to a Mixed Pension?

The right to a mixed pension is granted only to persons who meet all statutory conditions. These means insured persons who:

• were born after 31 December 1948,
• reached statutory retirement or early retirement age between 2009 and 2014.
• did not join an Open Pension Fund (OFE) or opted to transfer their OFE funds to the state via ZUS.
• did not receive an early retirement pension granted only under the old rules.

In practice, this means that today, mixed pensions apply to a very narrow group of beneficiaries.

Proportions of a Mixed Pension – Table

The amount of a mixed pension depends on the year in which the insured person reached retirement age. These proportions remain fixed. They do not depend on the date the applicant submits their request.

How Does the Social Insurance Institution (ZUS) Calculate a Mixed Pension?

The calculation of a mixed pension consists in determining, in parallel, two hypothetical benefits. One under the old rules and one under the new rules. Then the appropriate proportions apply.

Part Calculated Under the New Rules

The “new” part of the pension is determined based on:

• indexed pension contributions recorded in the insured person’s account,
• indexed initial capital,
• funds recorded in the ZUS sub-account, including those transferred from the OFE Fund.

The sum of these values is divided by the average further life expectancy corresponding to the age at which the insured person retires.

Part Calculated Under the Old Rules

The “old” part of the pension consists of:

• 24% of the base amount,
  • 1.3% of the assessment base for each year of contributory periods,
  • 0.7% of the assessment base for each year of non-contributory periods.

The assessment base is determined on the basis of selected earning years. Either from the last 20 years before submitting the application or from the entire insurance period.

Comparison of Calculation Rules – Table

Open Pension Fund OFE and the Mixed Pension

Membership in an Open Pension Fund (OFE), as a rule, excluded the possibility of a mixed pension. An exception applied where the insured person transferred the funds accumulated in OFE to the state budget. This decision was irreversible and directly affected the method of benefit determination.

Recalculation of a Mixed Pension – Is It Possible?

As a rule, a mixed pension is not subject to full recalculation under the new rules. Even if the pensioner continued work after the pension was granted and paid further contributions. This aspect has become the subject of many disputes and constitutional complaints.

ZUS allows only limited recalculations from contributions paid after a pension is granted. There is no possibility to change the original proportions.

Mixed Pensions for Women – A Specific Situation

In practice, mixed pensions affected women the most. They more often used early retirement and reached retirement age during the transition period. As a result, their pensions were lower than those of women retiring a few years later under the new rules.

Pension After the 1999 Reform – The Importance of the Transitional Period

The 1999 pension reform was systemic in nature. Yet, the transitional period caused major differences among similar age groups. Mixed pensions are today one of the most visible examples of these disparities.

Mixed Pensions – Summary

Mixed pensions were a transitional solution. The goal was to mitigate the effects of the pension reform. They apply exclusively to persons who meet strictly defined statutory conditions. They concern only those who reached retirement age in the years 2009–2014. Although they are no longer granted to new beneficiaries, they remain a significant practical issue. Particularly in the context of recalculations and disputes with the Social Insurance Institution (ZUS).

If you have a mixed pension or doubts about its calculation, review your individual case. Our experts can support you and advise on recalculation or further legal steps. Contact us today!

FAQ – Frequently Asked Questions About Mixed Pensions