The Social Insurance Fund

The Social Insurance Fund (Fundusz Ubezpieczeń Społecznych, FUS) is the Polish state special purpose fund. It was established on 1 January 1999 by virtue of the Act on the social insurance system. The Fund is administered by the Social Insurance Institution.

Incomes of the Social Insurance Fund come inter alia from:

  • social insurance contributions not subject to transfer to Open Pension Funds,
  • funds compensating contribution amounts transferred to Open Pension Funds,
  • payments from the State Budget and other institutions, intended for benefits that ZUS has been commissioned to pay, with the exception of benefits financed under other budgetary chapters and payments from foreign institutions,
  • interest on the FUS bank account,
  • State Budget allocation,
  • resources of the Demographic Reserve Fund,
  • and as from 1 November 2014 – payments from open pension funds as a result of the insured person reaching an age lower by 10 years than the statutory retirement age.

Within the limits fixed by the Budgetary Law, the Social Insurance Fund may receive allocations and interest free loans from the State Budget. Allocations and loans may be intended solely to supplement funds for the payment of state-guaranteed benefits if the revenues transferred to the FUS bank account and the resources collected as the reserve fund do not ensure the full and timely payment of FUS-financed benefits.
With the consent of the minister in charge of public finance FUS may take out credits.

The following four funds are distinguished within FUS:

  • old-age pension fund, which is intended to finance:
    • old-age pensions – based on contributions credited to the main account in ZUS,
    • funded pensions – based on contributions credited to the sub-account in ZUS,
  • disability pension fund, which is intended to finance:
    • disability pensions, training pensions, survivor’s pensions, supplements to survivor’s pensions for double orphans, nursing supplements,
    • old-age pensions awarded ex officio in place of disability pensions,
    • funeral grants,
    • pension prevention,
    • benefits that ZUS has been commissioned to pay, financed by the State Budget,
  • sickness fund, intended to finance sickness, maternity, care, compensatory allowances, rehabilitation benefits,
  • accident fund, intended to finance work accident pensions and supplements, lump-sum compensations, sickness allowances in respect of work incapacity resulting from an accident at work or occupational disease.