Since 2019, PPK (Employee Capital Plans) Are Obligatory for Employers Engaging at Least 250 People

January 2019       Authors: Dr. Izabela Szczygielska, Patrycja Caban

The legislation imposing an obligation to implement additional pension plans for employees (called Employee Capital Plans; Polish acronym: PPK) entered on January 1, 2019.
It requires that the employers select a financial institution which will manage the PPK. The employer decides about selection of the financial institution together with employees’
representatives. First employers (employing at least 250 people) will be subject to this obligation since July 1, 2019.

Highlighted below are the most important dates for such employers.

Date of determination of the headcount Date of application of the act  Date of conclusion of the agreement on management of PPK with a selected financial institution Date of conclusion of the agreement on management of PPK with a selected financial institution
31 December 2018 1 July 2019 26 September 2019 10 October 2019
(in case of people employed later - not later than on 10th day of the month following the month in which 3 months of employment have elapsed)

First contributions by 15 November 2019
The obligation to make first contributions arises in the month following the calendar month in which the agreement on maintenance of PPK is concluded. According to the legislation, as a rule, contributions to PPK should be made until 15th day of month following the month in which they were calculated and charged. It means that first contributions should be made by entrepreneurs employing at least 250 people not later than on 15 November 2019.

The final decision is up to the participant
All individuals subject to obligatory social insurance aged between 18 and 70 will be eligible to participate in PPK (as a principle, the individuals aged between 55 and 70 will have to submit a declaration of participation to PPK in order to be covered by the plan). Each person will be entitled to declare to employer in written form that they do not want to participate in PPK (until an agreement on maintenance of PPK is concluded) or resignation from PPK (at any subsequent time). Every four years, until the end of February, employers will be obliged to inform employees who submitted such declaration about the resumption of contributions for them.

Obligations for other employers starting from 1 January 2020
Since 2020 other employers will be successively covered by the obligation to create PPK. The date in which the act should be applied depends on the headcount, including not only employees, but also e.g. home based workers, people engaged on the basis of agency agreements, contracts of mandate, contracts for providing services, and members of supervisory boards remunerated for performing those functions.

Headcount  Date of determination of the headcount Date of application of the act  Date of conclusion of the agreement on management of PPK Date of conclusion of the agreement on maintenance of PPK
At least 50 people 30 June 2019 1 January 2020 27 March 2020 10 April 2020
At least 20 people

31 December 2019

1 July 2020

28 September 2020 12 October 2020
Other - 1 January 2021 26 March 2021 12 April 2021
Public finance sector - 1 January 2021 26 March 2021 10 April 2021

Since 2019, PPK (Employee Capital Plans) Are Obligatory for Employers Engaging at Least 250 People

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