ZUS Initial capital – what to do if it was calculated incorrectly?

Did you know that your ZUS initial capital can be miscalculated? This type of mistake is unfortunately not uncommon, and initial capital is one of the main elements that determine the amount of your pension. How can you check if the calculation is correct? What to do if it is wrong? We answer below.

What Exactly Is Initial Capital?

Initial capital refers to the recalculation of pension contributions before 1 January 1999. At that point, individual pension accounts were introduced at ZUS. Based on this capital, ZUS calculates your pre-reform pension savings.

Calculating initial capital determines the insured’s total accumulated premiums. Therefore, it directly affects the amount of the pension benefit.

Determining Initial Capital in ZUS – When and for Whom?

ZUS accepts applications for the calculation of the initial capital at any time.  Yet, it must be submitted together with the pension application at the latest. The right to determine initial capital applies to those born after 31 December 1948 who worked or paid contributions before 1999.

The initial capital can also be determined for people born before 1949 if they:

• for the first time applied for a pension after 31 December 2008,
• decided to calculate the benefit according to the reformed rules,
• have reached the general retirement age,
• have shown contributory and non-contributory periods in the total amount of at least 20 years (women) or 25 years (men), while non-contributory periods may be taken into account up to a maximum of 1/3 of the contribution periods,
• continued to receive pension and disability insurance after reaching retirement age.

How to Apply for ZUS Initial Capital Calculation?

You can apply for initial capital calculation even before you qualify for retirement. You can use the EKP form (initial capital application) or EMP form (pension application). All you need to do is complete the relevant section referring to initial capital.

The application is processed by the ZUS unit competent for the applicant’s place of residence. You need to attach the following documents to your application:

• ZUS ERP-6 form (questionnaire on contributory and non-contributory periods),
• employment certificates or confirmations from employers,
• employment and salary certificates referring to the period before 1999 (e.g., ZUS Rp-7 form),
• insurance ID showing employment and salary entries (as an alternative).

Documents must be original or certified copies. They should be authorised by a notary or an another representative, e.g. attorney, legal adviser, tax advisor, or patent attorney. After the calculations, ZUS returns the original documents, except for the Rp-7 form.

Good news: if ZUS has set your initial capital, you don’t need to resubmit documents for your pension.

What Affects the Amount of ZUS Initial Capital?

The amount of initial capital is determined individually. It depends on several key factors. First of all, the following aspects are taken into account:

• length of contributory and non-contributory periods completed before 1 January 1999,
• the basis for contribution assessment, i.e. the amount of earnings earned in the past,
• the “P” coefficient, which is used to calculate the so-called social part of the benefit.

The base amount used in these calculations is 100% of the average monthly wage in the national economy in the II qtr. of 1998, which was 1220.89 PLN.

How Is ZUS Initial Capital Calculated?

The amount of the initial capital is determined based on:

1. a part depending on the contribution periods,
2. a part depending on non-contributory periods,
3. the so-called social part.

Each of these components is calculated according to specific rules. Find the details in the table below:

Thanks to these indicators, ZUS can recreate the value of contributions before 1999. This is a key factor in determining the amount of your future pension.

What to Do If ZUS Miscalculates Your Initial Capital?

ZUS may make a mistake. It may omit some periods of employment, non-contributory periods, or understate earnings. It is worth analysing the decision on the initial capital on your own and comparing it with the documentation you have.

You have the right to:

• apply for recalculation of initial capital, based on new or updated documents,
• appeal the ZUS decision within 30 days to the labour and social security court.

If you have any doubts, consult an expert. An incorrectly calculated capital can reduce your pension by several hundred PLN monthly!

New Documents = Higher Pension

If you manage to obtain a certificate of higher earnings years later (e.g. from the archives of the workplace), you can apply for a recalculation. This often significantly increases the initial capital, and therefore the pension amount.

You can submit the application once. Yet, if ZUS rejects it, you have the right to make further attempts after obtaining new evidence.

Initial Capital – Summary

Initial capital is the foundation of your retirement. Its correct calculation determines how much money you will receive each month. That’s why checking the calculation is crucial. If there are mistakes, you should react.

What can you do now? Don’t wait for ZUS to lower your retirement pension!

First, check your initial capital decision. Then collect any missing documents and apply for recalculation. Do you have any questions? Contact us or visit the official ZUS website.

FAQ About ZUS Initial Capital