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Jarosław Kaczyński won't reform Polish pension laws

1st July 2010
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Law and Justice (PiS) presidential candidate Jarosław Kaczyński has said that, if elected president, he would not limit pension privileges for uniformed service workers and miners. Mr Kaczyński also ruled out making significant changes to KRUS, a special insurance scheme which allows farmers to pay reduced social contributions and pension down payments.

KRUS is heavily subsidized by the government and is estimated to have cost taxpayers over zl.16 billion in 2009.

Meanwhile, uniformed service workers such as policemen and soldiers are allowed to retire in full after 15 years of service. In the case of miners, the government subsidizes their pensions every year. Last year the bill came to around zł.4.5 billion, according to Jeremi Mordasiewicz, from the Polish Confederation of Private Employers Lewiatan (PKPP).

At a meeting on Thursday with employer associations belonging to the Entrepreneurs Congress (Kongres Przedsiębiorczości), Mr Kaczyński was asked whether, if elected president, he would sign a bill extending the retirement requirement for uniformed service workers from 15 to 25 years of service. He was also asked if he would limit miners' privileged pensions or attempt to pass a bill “limiting government transfers to KRUS.”

Such a bill would require farmers to be treated as sole proprietors by the tax system.

In reply to the questions, Mr Kaczyński said such changes could “impair the social balance”.

“In the case of uniformed service workers, I know the pension system is costly but it’s the reason these services function despite low pay. If we were to liquidate the system, I am afraid we wouldn’t have any more policemen,” said Mr Kaczyński.

On the KRUS issue, Mr Kaczyński said eliminating the fund or limiting transfers to it could result in exposing a large group of people to the “danger of hunger” as well as putting at risk their “biological survival”.

When it came to miners, PiS's presidential candidate said mining was a very difficult and dangerous job and that as long as the Polish economy was largely dependent on energy from coal, the government would have to pay the extra costs from its budget.


From Warsaw Business Journal by Remi Adekoya


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