Dear Sirs, we would like to inform you that our company has started the process of implementing Employee Capital Plans (PPK).
For this purpose, in accordance with Art. 7 points 1-4 of the Act on Employee Capital Plans from 4 October 2018 (hereinafter referred to as: Act of PPK)
our company implemented PPK in cooperation with Nationale-Nederlanden Powszechne Towarzystwo Emerytalne Spółka Akcyjna, ul. Topiel 12, 00-342 Warsaw with its registered office in Warsaw entered into the Register of Entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw in Warsaw, 12th Commercial Division of the National Court Register, under KRS no. 0000042153, tax numer 526-22-41-523.
Our company concluded an agreement with Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. (dalej zwane NN).
The choice of NN as the institution servicing PPK for our employees was made, guided by the interests of our employees, taking into account the experience of NN on the market and their effectiveness in managing assets, investment and pension funds.
For over 20 years, NN has been focusing on offering pension products – OFE, IKE and IKZE, and stands out on the market from other institutions operating in this area, e.g. large pension assets and high long-term returns.
On website https://bravecare.pl/ppk/ lub https://www.mojeppk.pl/ lub https://www.nn.pl/ppk.html you will find detailed information on the PPK program and below we present the most important information.
- What is PPK?
PPK is a voluntary and private system of long-term saving for retirement purposes, which is intended to increase the financial security of Poles and provide additional funds to people after the end of their professional career, thanks to contributions from the employer, employee and from the state budget.
Your Employee Capital Plans are financed from 3 sources:
- Employee contribution (yours): from a minimum of 2% to as much as 4% of the gross salary, but deducted from the employee’s net salary. A PPK participant, in addition to the obligatory basic payment of 2%, may declare an additional payment to the PPK in the amount of up to 2% of his remuneration.
A PPK participant whose remuneration earned from various sources in a given month does not exceed the amount corresponding to 1.2 times the minimum wage, may submit to the employing entity a declaration of reduction of the basic contribution to the PPK – the reduced basic contribution may be less than 2%, but not less than 0,5% of his salary.
- Employer’s contribution: from a minimum of 1.5% to as much as 4% of gross salary. The employer pays the above contribution from its own resources.
Moreover, the Employer is obliged to calculate and collect part of the contribution due from the PPK participant and to make payments from the employer and the employee to the individual account of the PPK participant, kept by NN.
- State contribution: 240 PLN yearly + 250 PLN one-time welcome fee
When withdrawing money after the age of 60, you can get 25% of the accumulated amount at once, and the remaining 75% in monthly installments (at least 120).
You can also withdraw 100% of the accumulated funds, but then you will pay capital gains tax (19%).
Before reaching the age of 60, funds can be withdrawn in the cases listed in the PPK Act.
- Who will be enrolled in the program
Participation in PPK program is voluntary
All employees aged 18-55, both persons employed under an employment contract and under a contract of mandate, from whom pension contributions are paid, will be automatically enrolled in the program, unless they submit a written declaration of resignation from saving.
Please be advised that the declaration of resignation from PPK must be on a special form to be effective and in accordance with the guidelines of the Ministry.
An employee who resigned from participation in the PPK will be re-enrolled in the PPK by the employer every 4 years, with the possibility of resignation. Detailed information on PPK for individual forms of employment that may be covered by the PPK program is defined in Art. 2 sec.18 of the PPK Act.
It is possible to suspend payments to the PPK at any time as well as to resume them, but action on the part of the employee is required.
The employer concludes a PPK agreement on behalf of and for the benefit of the employee after 3 months (90 days) of employment, not later than by the 10th day of the month following the month in which the period of 3 months of employment expired.
The period of employment includes all periods of employment from the previous 12 months with a given Employer or with other employers, if the new employer is the legal successor of these other employers
If an employee wishes to resign from participation in the PPK programe, he or she may submit such a declaration no later than the 5th month following the month in which the period of 3 months (90 days) of employment expired. If no resignation is submitted, the employee will be automatically reported to the PPK program
People who have been working in our company for more than 90 days and do not want to join PPK will have to complete a special declaration.
An employee may submit a declaration of resignation in two situations:
a) Even before concluding a management contract on his behalf. Then, in accordance with Art. 16 sec. 1 the employee will not become a PPK participant
b) After the conclusion of the management contract. Then, in accordance with Art. 23 sec. 2 the agreement does not cease to be in force, and resignation means that contributions to the PPK cease to be charged.
An employee may at any time submit an application to join the PPK again
Employees who are over 55 and under 70 are not automatically covered by the PPK. In order to become a participant, they should submit an application to the employing entity for concluding – on their behalf and for their benefit – a contract for running the PPK
- Employees with PPK accounts set up by other employers
An employed person who is a PPK participant should – within 7 days, after the end of the 10th day of the month following the month in which his 3-month period of employment expires – submit to the employing entity a statement on the contracts for running the PPK concluded on his behalf, the statement should contain designation of the financial institution with which agreements were concluded.
In the above situation, the Employee may take the following actions:
– submit declaration of resigantion from PPK to the new Employer,
– decide to join the PPK program run by the new employer, while maintaining other PPK accounts and funds collected in other financial institutions
– submit an application for a transfer payment of funds accumulated on his/her PPK accounts kept by financial institutions with which other employing entities concluded contracts for the maintenance on behalf of and the benefit of the employee, to his/her PPK account kept by the financial institution with which the contract for the maintenance of PPK was concluded new employer.
- What forms of employment are included in PPK?
- Employment contract.
- Contract of mandate or Contract of agency.
- Membership in agricultural production cooperatives or cooperatives of agricultural circles.
- Membership in the supervisory board (as long as you receive remuneration for the function performed).
- Where will the employee’s money be invested and is it safe
Funds from contributions from the employee, employer and state will be transferred to the employee’s individual account at the financial institution Nationale-Nederlanden Powszechne Towarzystwo Emerytalne Spółka Akcyjna with its registered office in Warsaw.
The above-mentioned NN financial institution will maintain individual employee accounts and invest employee funds in various types of financial instruments
Funds accumulated in PPK will be invested in funds with a defined date, whose investment policy will change with the age of the PPK participant.
As the participant approaches 60 years of age, the funds will automatically change their investment policy to a less risky one (e.g. investing in instruments such as shares or treasury bonds).
However, it should always be remembered that investing involves risk and the funds accumulated in PPK are not guaranteed.
While saving, the PPK participant will not be able to change the financial institution selected by his employer, but he will be able to change the defined date fund to which he has been assigned and choose a fund that, in his opinion, will be better suited to his needs.
- Costs of investing in PPK
Fees for the management and maintenance of PPK are collected by NN in accordance with statutory limits. Details on fees can be found on the NN website and in the PPK Act.
Employee should infrom the employer in the event of a change in the following employee data: name (names), surname, address of residence, correspondence address, telephone number, e-mail address, PESEL number or date of birth in the case of persons without a PESEL number, series and number of the identity card or passport number or other document confirming identity in the case of persons who do not have Polish citizenship.
The change of data should be immediately reported to the employer by completing the form „Change of data of the PPK Participant”.
All forms of declarations and applications can be found on the website https://bravecare.pl/ppk/ lub https://www.mojeppk.pl/ lub https://www.nn.pl/ppk.html
Templates of dokumentation
Materials information obligation