SOCIAL SECURITY REFORM AND ITS FINANCIAL RAMIFICATIONS FOR POLAND'S ZUS SYSTEM

Social insurance plays a pivotal role in the Polish social security system, safeguarding individuals against various life risks such as old age, disability, loss of the primary breadwinner, illness, maternity, and workplace accidents or occupational diseases. This essential safety net has been administered by the Social Insurance Administration (ZUS) since 1933. Initially a central state administration body, ZUS transitioned to a state organizational unit with legal personality in 1999, in line with updated legal frameworks. Even under this new structure, ZUS retains the authority to employ legal measures typically vested in state administration bodies.Notably, the establishment of the Social Insurance Trust Fund (FUS) several decades ago marked a significant development. The FUS serves as the financial backbone for social benefits disbursed by ZUS, and its stability is further bolstered by state budget allocations. This financial support ensures the full payment of benefits, even in cases where social insurance contributions fall short.This paper delves into the evolution and dynamics of social insurance in Poland, shedding light on the pivotal role of ZUS and the critical safety net provided by the Social Insurance Trust Fund