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EMPLOYEE CAPITAL PLANS (PPK)

Autosave in the PPK in 2023

 The employer is obliged to resume making contributions to the Employee Capital Plan (PPK: Pracowniczy Plan Kapitałowy) every 4 years from 1 April (the first time in 2023),  for each person employed who has made a declaration to opt out  from making contributions to the PPK, unless that person again resigns, by submitting a new declaration to the employer to opt out of making contributions to the PPK.

By the end of February 2023, employees who have made a declaration to opt out of making PPK contributions,  will be provided with and required to sign the “Information on resumption of PPK contributions”;  -it is the responsibility of the employing entity to provide this information to the PPK participant.

Every four years, the employer will be required to repeat the autosave procedure in the PPK. The first, repeated autosave to this programme will take place in 2023,  and then in the following years: 2027, 2031, etc.

The autosave in the PPK in 2023 means that from 1 April 2023, the employer will make payments to the PPK on behalf of the employees.

If the employee has previously submitted a declaration to the employer to opt out of the PPK contributions, this declaration will expire on 28 February 2023 (even if submitted in February 2023)

The repeated autosave refers to persons who have made a declaration of opting out from making contributions to the PPK.

The repeated autosave in the PPK shall not refer to a person who:

  • turned 55 before 1 April 2023 and has not applied to her/his employer to enter into a PPK agreement on her/his behalf;
  • turned 70 before 1 April 2023 (even if she/he submits an application to her/his employer to enter into a PPK agreement on her/his behalf);
  • since 1 March 2023has submitted again a declaration to the employer to opt out of the PPK contributions,

Important! The earliest that an employee can declare that he or she is no longer making contributions to the PPK is 1 March 2023.

Additional information on the autosave is available at https://www.mojeppk.pl/

PPK in practice: Autosave

Employee Capital Plans (PPK) are a voluntary long-term saving programme, created and co-financed by employees, employers and the state. Payments made by the employee and the employer, as well as a welcome payment and annual surcharges from the state will be collected on the PPK’s private and personal accounts. The payments of the employee and the employing entity will be calculated as a percentage of the employee’s remuneration. The employee may withdraw from the programme as well as re-subscribe to it at any time.

Moreover, we inform that:

  • an employee who is the PPK participant should ─ within 7 days, after 10 days of the month following the month in which the 3-month period of employment has passed ─ submit to the employing entity a statement on agreements concluded on their behalf to operate the PPK. The statement should identify the financial institutions with which these agreements were concluded;
  • an employee who has reached the age of 55 and has not yet reached the age of 70 should submit an application to the employing entity to conclude an agreement to operate the PPK for and on their behalf in order to become the PPK participant;
  • a PPK participant, in addition to the obligatory basic payment, may declare an additional payment to the PPK of up to 2% of their remuneration;
  • The PPK participant whose remuneration obtained from various sources in a given month does not exceed an amount corresponding to 1.2 the amount of the minimum remuneration may submit a declaration to the employing entity to reduce the basic payment to the PPK. The decreased basic payment may be less than 2% but not less than 0.5% of their remuneration.

PPK AND THE CHANGE OF WORKPLACE

At the same time, the PPK participant may be a party to more than one PPK maintenance agreement concluded by other employers with whom the PPK participant was or is still employed.

If the PPK participant changed their workplace, they should inform their new employer about their PPK accounts.

For this purpose, they should submit to the employer:

“Declaration on the concluded agreements for operating Employee Capital Plans (PPK)” (download pdf).

This will allow the employer to take action so that the employee’s existing savings collected in the PPK are transferred to the employee’s new PPK account – the employer applies on behalf of the employee for a transfer payment.

The PPK participant shall submit the “Declaration on the concluded agreements for operating Employee Capital Plans (PPK)” within 7 days after three months of employment, no later than by the 10th day of the month following the month in which three months of employment have passed, unless the employee declares not to make payments to the PPK, based on the “Declaration on resignation from making payments into Employee Capital Plans (PPK)” (download pdf) or ceases to be an employee (termination of employment contract) before the end of that period.

The employer informs the PPK participant about the obligation to submit on their behalf an application for a transfer payment of funds collected in their PPK accounts, maintained by other financial institutions.

The PPK participant can leave the collected funds in the old financial institution or transfer them to a new one to collect all funds in one account.

If the participant decides to leave the funds in the old institution, they should submit in writing the “Statement on lack of consent for transfer payment” (download pdf) within 7 days of receiving information from the employer about the obligation to apply for transfer payment.

If the employer does not receive the “Statement on lack of consent for transfer payment ”, they apply on behalf of the PPK participant for transfer payment of funds collected in the PPK accounts indicated in the “Declaration on the concluded agreements for operating Employee Capital Plans (PPK)”.

We publish the information on Employee Capital Plans (ECP; in Polish: Pracownicze Plany Kapitałowe, PPK), a voluntary long-term saving programme, developed and co-financed by employees (employees and contractors subject to obligatory social insurance), employers and the state. Payments financed by the employees, the employer, a welcome payment and an annual surcharge from the state will be transferred to individual private ECP accounts.

On 26th March, the University of Warsaw signed an agreement with the PZU SA Investment Fund Management Company (Towarzystwo Funduszy Inwestycyjnych PZU SA) on the management of PPK.

The fund will be managing assets of UW employees who decided to join PPK (aged 55-70) and those who had not resigned from participation in PPK (aged 18-54). The contract with PZU will be concluded no later than 10th April. The first contributions to Employee Capital Plans will be calculated on the remuneration paid after 10th April 2021.

To learn more about Employee Capital Plans, watch this webinar.

After signing the contract, each PPK participant will receive a welcome letter (with access to the inPZU website). The letter will be sent to the correspondence address included in SAP (check your address of correspondence in ESS, if there are changes, please report them to the UW Human Resources Office).

A PPK participant may, in certain circumstances, reduce the basic payment or resign from a previously declared lower basic payment.

The obligatory basic contribution financed by a PPK participant may be less than 2% of their remuneration, but not less than 0.5% if the remuneration of a PPK participant obtained from various sources in a given month does not exceed the amount corresponding to 120% of the minimum remuneration.

View the “Declaration on financing the basic payments into employee capital plans (PPK)”.

Each PPK participant can declare a voluntary additional payment – up to 2% of gross remuneration.

PPK participants can, at any time:

  • Declare a voluntary additional payment;
  • Change the amount of the additional payment;
  • Resign from making the additional payment.

View the “Declaration on financing the additional payments into employee capital plans (PPK)”.