Bridging Pensions’ Fund

The 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 the old-age bridging pensions to finance this type of benefits. The Fund is administered by the Social Insurance Institution.

FEP revenues comes inter alia from:

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

Within the limits fixed by the Budgetary Law, FEP may receive allocations from the state budget, which allows to supplement funds for payment of bridging pensions.

Available FEP funds may be invested by ZUS in bank deposits and in Treasury securities.

The payer pays FEP contributions for an employee who meets all of the following conditions:

• was born after 31 December 1948,
• performs works in special conditions or in special character.

The obligation to pay FEP contributions for an employee arises on the day on which he or she begins to perform work in special conditions or of special character, and ceases on the day on which he or she ceases to perform such work.

FEP contributions are payable at a rate of 1.5% of the contribution assessment basis. They are fully financed by the contribution payer. The contribution is calculated based on the assessment basis of the pension insurance contribution. When determining the assessment basis, the annual basis limitation is applied as for calculating the contribution to pension insurance (the thirty-fold amount of the projected average monthly wage/salary for a given calendar year in the national economy).

In 2023, the revenue of the Bridging Pension Fund amounted to PLN 2,288.2 million, including the contributions written – PLN 427.3 million, and the subsidy from the state budget – PLN 1,842.6 million. In turn, the costs of the fund amounted to PLN 2,265.7 million, of which 99.7% was expenditure on bridging pensions.