ABSTRACT
The rate of the old-age pension insurance contribution is 19.52 percent, of which 11.22 percent is transferred to the first pillar, 7.30 percent to the second pillar and 1 percent to a Demographic Reserve Fund. In the Polish context, "privatization in pension security" means a pillar system, including compulsory pillars which form a part of the social security system covered by state guarantees. The quality changes in the new pension system consist of conversion of the defined benefit scheme into a defined contribution scheme. Radical old-age pension reform was linked with the adoption of completely new principles and a new philosophy for the system as well as with a considerable number of quality changes. The reform has been introduced without any supplementary contribution to the compulsory funded pension system. Social elements, such as non-contributory periods, permanent pension element, guaranteed to every person insured, are non-existent in the new system.
