Employee Capital Plans PPK Additional pension with PKO TFI

What are PPK and why were they created?

PPK is a common system of long-term savings for employees, whose task is to build pension capital. PPK is an initiative implemented and co-financed by employers and the State Treasury.

mandatory for employers
voluntary for employees

PPK is a concept of the Ministry of Finance to increase the savings rate of Poles and guarantee of additional financial security after the age of 60.

From when will PPK be in force in companies?

The PPK for the first group of employers will come into force as early as July 2019. Deadlines depend on how many people are employed by the employer on the date specified in the PPK Act.

1 July 2019	1 January2020	1 July 2020	1 January 2021

Companies employing more than 250 employees	Companies employing from 50 to 249 employees	Companies employing from 20 to 49 employees	Companies employing from 1 to 19 employees

Which employers may be exempt from the obligation to establish PPK?

Entrepreneurs who, as of the date of entry into force of the obligation to apply the provisions of the PPK Act, will run the PPK with a contribution of 3.5% and participation at the level of 25% of persons employed
Micro-entrepreneurs (employment up to 9 employees) and entrepreneurs where all employees refuse the participation in the PPK

Contribution to PPK - who pays how much?

EMPLOYER	EMPLOYEE	STATE

Basic payment: 1,5% employee's remuneration Aditional payment: up to 2,5% of the remuneration	Basic payment: 2% employee's remuneration Aditional payment: up to 2% of the remuneration	Welcome payment: 250 zł (one -off) Annual payment: 240 zł (once a year)
Contributions to the ECP are included in the tax deductible costs and excluded from the base for contributions to ZUS.	Contributions are calculated on the basis of gross revenue, but deducted from wages after tax.	Each employee participating in the ECP will receive a welcome fee and an annual surcharge every year.

PPK: benefits and obligations

PPK for the Employer

PPK for Employees

ZUS relief - basic and additional payment to PPK is an element of remuneration, from which social security contributions will not be calculated
Obligation to establish - each company in the country will be required to create an PPK for its employees
Tax relief - costs of running the PPK will constitute tax deductible costs

Voluntary participation - automatic enrolment to PPK of the employee by the employer with a possibility of withdrawing from participation in PPK
Withdrawal of funds - one-off payment of up to 25% of funds after the age of 60. Remaining part paid in subsequent years in the form of a fixed-term pension
Tax relief - exemption from capital gains tax on accumulated funds
Inheritance - funds accumulated in PPK will be inherited and will not be subject to inheritance tax

When can a participant withdraw funds from the PPK?

Possibility of paying out saved money after the age of 60	Possibility of early withdrawal of money from the ECP
one-off withdrawal of 25% of the accumulated funds directly to the bank account withdrawal in instalments - 75% of funds in at least 120 monthly instalments	in the case of purchase of a flat / construction of a house for a loan (up to 100% of the value of funds), with the obligation of subsequent return in the case of serious illness of the scheme participant, his or her spouse or child (up to 25% of the value of funds) with no need to return the funds

iPPK

See how easy it will be to use PPK owing to the on line iPPK application:

signing of the PPK management agreement with PKO TFI
registration of own employees in the PPK
settlement of basic and additional contributions to the PPK
taking instructions from own employees
permanent access to all information concerning the PPK
helpful reports to facilitate the day-to-day servicing of the PPK
managing application permissions

PPK calculator

Find out how much you can additionally save in the PPK.

Calculator PPK

Profitability - i.e. how will money be invested in the PPK?

PPK - age-adjusted investment

	For over 22 years we have been managing the investments of our customers. More than half a million customers have trusted us We were one of the first Companies to launch a life cycle fund. In separated sub-funds, we automatically adjust the structure of the invested capital to the age of the participant
	A similar mechanism will be used in the defined date fund under the PPK The composition of the investment portfolio will change so as to reduce the percentage of shares in the portfolio along the lapse of the period remaining until the retirement age Such a solution allows to increase the chances of achieving satisfactory rates of return and reduce the level of investment risk