PPK – we answer the most important questions



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I have to participate in the PPK, what formalities meet and when the system will take effect in my company – among others, such issues arise in connection with the beginning of Employee Capital Plans. A new way to save for retirement is justified. We describe the most important facts you should know.

The PPK Act provides for the creation of a private service, voluntary system collecting retirement savings. State, employers and employees should be involved in the program.

The basic payment funded by a PPK (employee) participant may be 2 to 4 percent. his salary. The employer, in turn, will pay a premium of 1.5%. up to 4 percent compensation. As a result, the maximum payout for PPK – in the case of an employee – can reach 8%. In addition, savers will receive a welcome payment of 250 PLN and a surcharge of 240 PLN per year.

Photo: Małgorzata Latos, Maciej Zieliński / PAP / photos

Do I have to participate in PPK?

Employee Capital Plans are a voluntary program, at any time you will also be able to refrain from making payments. For this purpose, a special statement will have to be made. An employee who relinquishes the PPK will be automatically saved on it every four years. If he still does not want to make payments, he will have to file a new resignation statement to the employer.

While PYou will be able to apply to PPK any time.

People between 18 and 55 years will be automatically saved in PPK. In other cases, everything will depend on the age of the person employed. For people who:

  • are over 55 but are not older than 70 – the employee must apply for PPK membership. The condition, however, will be an appropriate stage in a given company. Must be at least 3 months during the 12 months prior to the first working day;
  • they are 70 years old – they can not participate in the PPK.

Can I decrease or increase the contribution to PPK?

In the case of people who have low income, the basic payment may be lower – a minimum of 0.5% gross remuneration (if the employee receives a maximum of 120% of the minimum wage).

Employee and employer they will be able to transfer additional payments to PPKwhich will fund your PPK account up to a maximum total of 8%. gross remuneration.

Will my contributions be deducted from my pay?

Payments financed by the employer they will not be included in your salary. Therefore, the employer can not deduct this payment from the employee's remuneration.

Can I withdraw money from PPK before turning 60?

An employee who transferred money to PPK, he can withdraw money at any time. However, he will receive savings saved by:

  • tax on capital gains;
  • 30 percent the value of employer payments;
  • annual payments and welcome contribution.

The PPK participant will also have the opportunity to:

  • payment of money to cover one's own contribution in connection with obtaining a loan to buy an apartment or build a house if it is not more than 45 years old (up to 100% of the money with the return obligation);
  • payment of money in case of serious illness of an employee, his / her spouse or child (up to 25%, without obligation to return).

Will the program be covered by everyone regardless of the type of contract?

The Employee Capital Plans program is targeted at approximately 11.5 million Poles. It does not matter if the person is employed under an employment contract, civil law, agency contract or do work at home.

However, the law provides for exceptions. The PPK will not have to create a micro-entrepreneur, if all your employees file cancellation statements.

A similar situation applies also to companies which manage the Employee Pension Scheme (EPP) and charge and pay contributions at a rate of at least 3.5%. by a minimum of 25% employed persons.

What formalities should I follow to join the PPK?

It is the employer who will have to conclude an agreement on behalf of the employee to operate the PPK. Participants do not have to do anything. Only people between the ages of 55 and 70 will have to submit a request to the employer for the conclusion of a contract to administer the CBO.

When will PPK become effective in my business?

Although the Act entered into force on January 1, 2019, PPKs do not need to be created immediately. It all depends on the amount of employment:

  • entities employing at least 250 people – as of July 1, 2019.
  • entities employing at least 50 people – from 1 January 2020.
  • entities employing at least 20 people – from 1 July 2020.
  • entities employing less than 20 people and the public finance sector – as of January 1, 2021.

This does not mean, however, that the first PPK payments will be made in July 2019. This will be determined by the time the employer signs the contract to run the PPK.

What happens to PPK if you change or lose your job?

The employee will have the option of leaving the money in the institution with which the previous employer signed a contract on the conduct of PPK. Money can also be transferred to the institution that meets the PPK of the current employer. In case of loss of work, the money will remain in the existing employee's account. You can, of course, withdraw them.

Will PPK include self-employed?

Individuals who own an individual business will not be covered by the PPK. However, you can increase your deposit limit for the individual pension security account (IKZE). This limit of 1.2 times the average remuneration will increase to 1.8 times.

Where will contributions to PPK be paid?

The selection will be made between financial institutions listed in the PPK records. They are:

  • investment funds managed by Towarzystwo Funduszy Inwestycyjnych;
  • pension funds managed by Universal Pension Societies;
  • employee pension companies;
  • insurance companies.

Will I influence the employer's decision regarding the choice of the institution that will execute the PPK in my company?

Employers will have to decide on the choice of financial institution undertake in consultation with the trade union operating in a particular company. If there is no one, the employer will consult the employee representation.

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