Employee capital plans – main assumptions
Main assumptions of the employee capital plan :
- universal systematic saving program;
- obligatory for the employing entity, voluntary for the employed person;
- employee involment in saving;
- increasing financial security during retirement;
- payment of funds after reaching the age of 60;
- suport of employing entities on collecting savings by employees;
- ZUS reliefs;
- the accumulated funds are private;
- the options of early withdrawal in certain situations;
- co – financing from the Labor Fund.
1. Employing entity
- entity in which the supervisory board operates;
- agricultural production cooperatives or agricultural wheel cooperatives;
The implementation of PPK does not apply to:
- micro-entrepreneurs, provided that all employees make declarations of resignation from making payments to PPK;
- an employing entity that is a natural person who employs, to the extent not related to the economic activity of the entity, a natural person, to the extent not related to the economic activity of that person.
2. Person employed :
- employee, except persons:
– on mining leave,
– on holidays for employees of the mechanical coal processing plant,
- persons engaged in outwork, who are at least 18 years old;
- members of supervisory boards;
- members of agricultural production cooperatives or cooperative of agricultural circles;
- natural persons who have completed 18 years of age, performing work on the basis of an agency contract, commission contract or contract for the provision of services;
subject to mandatory retirement and pension insurance.
3. PPK participant
A natural person who is at least 18 years of age on behalf of and for whom the employing entity has entered into a PPK contract with a financial institution.
4. Managing entity :
- Investment fund company (TFI);
- Universal Pension Association (PTE);
- Employee pension society;
- Insurance company.
PPK management contract
The employing entity concludes a PPK management contract with a financial institution, which is selected in consultation with trade unions or other representation of employees. The employing entity is obliged to conclude a PPK management agreement with one of the following financial institutions:
- The Investment Fund managed by an investment fund company;
- Pension Fund managed by PTE or an employee pension committee;
- Insurance Institution;
provided that it has been entered in the PPK register.
Contract for running PPK
The employing entity concludes contracts for operating PPK on behalf of and for the benefit of each of the employed persons who has not resigned from joining PPK. Contracts for running PPK are concluded individually for each person employed with a financial institution with whom a PPK management contract has been concluded.
Deadlines for the conclusion of management contracts and contracts for running PPK
PPK management agreement :
- The contract is concluded with the selected financial institution no later than 10 business days before the day on which the first employee is obliged to conclude a contract for running PPK.
PPK contract :
- The contract is concluded by the employing entity on behalf of and for the benefit of a person employed after the third month of employment with the employing entity, no later than by the 10th day of the month following the month in which the 3-month employment period expired, unless the employed person declares not to make any payments to PPK before this deadline or ceases to be an employer of the employed person.
Dates for individual activities related to PPK depending on the employment status
EMPLOYING ENTITY AT LEAST 250 PEOPLE (as of December 31, 2018) :
- OBLIGATION TO CREATE PPK – 1ST OF JUNE 2019,
- FINAL DATE OF CONCLUDING THE PPK MANAGEMENT AGREEMENT – 25TH OF OCTOBER 2019,
- FINAL DATE OF CONCLUSION OF THE CONTRACT FOR THE CONDUCT OF PPK – 12TH OF NOVEMBER 2019.
EMPLOYMENT ENTITY AT LEAST 50 PEOPLE (as of January 1, 2019) :
- OBLIGATION TO CREATE PPK – 1ST OF JANUARY 2020,
- FINAL DATE OF CONCLUDING THE PPK MANAGEMENT AGREEMENT – 24TH OF APRIL 2020,
- FINAL DATE OF CONCLUSION OF THE CONTRACT FOR THE CONDUCT OF PPK – 11TH OF MAY 2020.
EMPLOYING ENTITY AT LEAST 20 PEOPLE (as of December 31, 2019) :
- OBLIGATION TO CREATE PPK – 1ST OF JUNE 2020,
- FINAL DATE OF CONCLUDING THE PPK MANAGEMENT AGREEMENT – 27TH OF OCTOBER 2020,
- FINAL DATE OF CONCLUSION OF THE CONTRACT FOR THE CONDUCT OF PPK – 10TH OF NOVEMBER 2020.
EMPLOYMENT ENTITY BELOW 20 PEOPLE :
- OBLIGATION TO CREATE PPK – 1ST OF JANUARY 2021,
- FINAL DATE OF CONCLUDING THE PPK MANAGEMENT AGREEMENT – 23RD OF APRIL 2021,
- FINAL DATE OF CONCLUSION OF THE CONTRACT FOR THE CONDUCT OF PPK – 10TH OF MAY 2021.
In the coming weeks, more articles on PPK will appear – we encourage you to follow the Law Firm’s news on a regular basis. If you have any questions or concerns regarding the implementation of PPK, please contact our Law Firm.