ZUS to Stop Chasing Pre-1999 Debts Under New Government Deregulation Bill

The Polish government has adopted a draft bill to automatically write off debts owed to the Social Insurance Institution (ZUS) dating from before January 1, 1999.

Automatic Debt Cancellation

The Council of Ministers has adopted a draft bill providing for the automatic write-off of debts owed to ZUS originating before January 1, 1999, prior to the social security system reform. This solution is part of the government’s deregulation package.

The draft, prepared by the Ministry of Family, Labor and Social Policy, aims to end costly and ineffective enforcement proceedings related to these ZUS receivables.

Financial Rationale and Scope

According to government communications, payments often fail to significantly reduce the principal debt amount because they are applied primarily to interest and enforcement costs. Estimates indicate that continuing to pursue these receivables over 10 years would cost approximately 135 million PLN, against estimated revenues of about 13.9 million PLN.

Under the draft, social security contribution receivables created before January 1, 1999, will be written off by operation of law. This means no application or individual proceeding at ZUS will be required.

Collateral and Enforcement Proceedings

Alongside the principal debt amount, items such as late payment interest, additional fees, reminder costs, and enforcement costs will be written off. Debt collateral, such as mortgages or pledges, will also expire.

Proceedings regarding receivables covered by the act are discontinued. ZUS will transmit information about the written-off receivables to enforcement authorities, bankruptcy trustees, courts, and restructuring proceedings operators.

Notifications and Opt-Out Option

Information about the write-off will appear on the individual PUE ZUS profile, the online service used to handle matters with ZUS. Individuals without such a profile will receive a notification at their last correspondence address registered with ZUS, and a certificate confirming the write-off can also be obtained.

Individuals for whom retaining the receivables may be important—such as when determining future retirement rights or starting capital—can opt out of the write-off. They will have 30 days to do so after receiving notification from ZUS.

Implementation Timeline

The new regulations are scheduled to enter into force on the first day of the month following a five-month period after their announcement in the Journal of Laws.