Impact of COVID-19 on the Disability Fund in Poland

Abstract

This study addresses, for the first time, the impact of the COVID-19 pandemic on the operation of the disability fund in Poland. The study considers the impact of deaths on the number of survivor pensions and funeral allowance paid. We selected benefits which are a direct consequence of the death of the insured person and do not involve a medical assessment or subsequent steps in the insurance procedure, which allowed for a novel result, avoiding the time-gap problem. Data of four years were included in the study: 2018 and 2019 as pre-pandemic years and 2020 and 2021 as pandemic years. The research presented in this article (unexpectedly) indicates that there is no impact of the increased number of deaths on the increase in the number of survivor pensions and therefore there is no negative impact of the COVID-19 implications on the disability fund. The relationship between the total number of deaths and the number of funeral allowances is characterized by a high correlation with a positive direction.

Employee Benefits Program Valuation with Multiple Decrement Model Based on PSAK 24 Post-COVID-19 Pandemic

“…and ℬ 𝑝 𝐷 4 = 𝒫 𝑝 𝐷 4 ℬ 𝑝 𝜂 𝑥 (𝑗) 𝑣𝑎p +1 (9) with 𝒜 𝐷 4 is the present value of disability benefit, ℬ 𝑝 𝐷 4 is the term cost of disability benefit for employee aged 𝑝, 𝜉 𝑥 (𝜏) 𝑝−𝑥 is the probability of the survival all decrements from age 𝑥 until 𝑥 + 𝑝 , 𝑣 (𝑝−𝑥) is the discount factor for (𝑝 − 𝑥) years, 𝒫 𝑝 𝐷 4 is the proportion of the benefit that a beneficiary will receive if the employee disability and 𝜂 𝑥 (𝑗) is theprobability that an individual aged 𝑝 will not survive untuk age 𝑝 + 1. The following is the present value of future typical costs multiplied by the total present value of benefits:…”

“…The study aims to evaluate the post-labour compensation program based on PSAK-24 in the new normal era of the COVID-19 pandemic. To that goal, first of all, literature related to the payment of unpaid work (Marska-Dzioba & Barczak, 2022;Petraki & Zalewska, 2015). The impact the withdrawal may have on people's retirement funds was either under or overestimated (Bateman et al, 2023).…”