The Old-age Bridging Pensions Fund

The Old-age Bridging Pensions Fund (Fundusz Emerytur Pomostowych, FEP) is a special purpose state fund. It was established on 1 January 2010 by virtue of the Act on old-age bridging pensions to finance this type of benefits. FEP is administered by the Social Insurance Institution.

FEP revenues originate inter alia from:

• contributions to the Fund,
• state budget subsidy,
• interest on Fund bank accounts,
• investment of available FEP funds.

Within the limits fixed by the Budgetary Law, FEP may receive subsidies from the state budget to supplement the resources for the payment of old-age bridging pensions.

ZUS may invest available FEP resources in bank deposits and may buy Treasury securities.

Contributions to the Old-age Bridging Pensions Fund are paid for an employee who meets in full the following conditions:

• was born after 31 December 1948,
• performs work in special conditions or of a special character.

The obligation to pay FEP contributions for an employee arises on the day when the employee starts to perform work in special conditions or of a special character, and expires on the day when the person concerned ceases to perform such work.

The FEP contribution is payable at a rate of 1.5% of the assessment basis. It is fully financed by the contribution payer. The contribution is calculated on the assessment basis of the pension insurance contribution. The contribution assessment basis is subject to the same limitations of the annual basis as when calculating pension contributions (thirtyfold of the projected average monthly wage/salary in the national economy for
a given calendar year).

The total amount of contributions transferred to FEP in 2018 was PLN 271.0 million.