Another round of Employee Capital Plans (PPK) implementation is upon us. The next group of entities required to implement PPK are entities employing at least 50 people as of June 30, 2019, and entities employing at least 20 people as of December 31, 2019.

Employee Capital Plans (PPK) are a universal retirement savings program regulated by the Act of October 4, 2018 (Journal of Laws of 2020, item 1342). Its purpose is to provide financial security by creating an additional source of funds after the age of 60. Employers are obligated to provide employees with the opportunity to save within the PPK, and every employee subject to mandatory retirement and disability insurance is entitled to participate in the PPK. Savings are made up of funds from three parties: the employee, the employer, and the state.

We would like to draw your attention to the upcoming statutory deadlines related to the obligation to implement PPK in the organization:

  • October 27, 2020 – deadline for concluding the PPK management agreement,
  • November 10, 2020 – deadline for concluding a contract for managing PPK.

Correct and timely implementation of PPK in an organization is extremely important because for violating certain provisions of the PPK Act, an entrepreneur may be subject to a fine of up to PLN 1 million.

THE MOST IMPORTANT ASSUMPTIONS OF PPK:

  • PPK is a capital and investment plan,
  • The share of the employing entity is the obligatory basic contribution of 1.5% of the employee's gross salary,
  • Employee participation is mandatory basic contributions of 2% of the employee's gross salary,
  • Voluntary additional contributions are also possible: from the employer up to 2.5% and from the employee up to 2%,
  • Additional payments are a potential benefit for employees according to the adopted criteria – length of service, remuneration regulations, collective labour agreement,
  • Mandatory employer contributions are exempt from ZUS.

How can we support you? Graś i Wspólnicy Sp. k. Law Firm provides the following services for PPK implementation:

  • legal advice on the implementation of PPK in the field of labor law,
  • developing a schedule for PPK implementation,
  • participating in the selection of a financial institution and preparing the minutes of the meeting regarding the selection of the institution,
  • participating in negotiations on concluding a management agreement and agreements on running PPK with a financial institution, including verification of the terms and conditions on the PPK portal and verification of agreements with the financial institution,
  • preparation of documentation related to the selection of employee representation,
  • representing the employing entity in negotiations with the employee side,
  • preparation of information materials related to the fulfillment of information obligations towards PPK participants and verification of materials from the financial institution with which the employing entity has concluded a PPK management agreement,
  • negotiations with the managing entity in order to conclude an agreement for the management of PPK,
  • providing opinions on communication materials regarding the implementation of PPK.

If you have any questions, please contact us.


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