The amendment to the Act on Employee Capital Plans (PPK) provides for the implementation of important changes aimed at simplifying PPK running. The definition of an employing entity will be extended, employees will be able to join the programme sooner, and micro-entrepreneurs will have to inform about the reasons for not implementing PPK.
The amendment to the PPK Act was announced on 20 May 2022 and most of the new provisions come into force on 4 June 2022. The changes to the PPK Act were introduced by the Act of 28 April 2022 on the principles of implementation of the tasks financed from European funds in the financial perspective 2021-2027.
Changes to the PPK effective from 4 June 2022:
- employers and contracting entities that are payers of contributions without an “identification number” NIP (tax identification number) or REGON (National Business Registry number) will also have the status of employing entities,
- natural persons and micro-entrepreneurs who have the status of employing entities will be obliged to submit – at the request of the PFR – a statement on meeting the conditions for exemption from PPK Act application, i.e. on the reasons for not implementing PPK,
- the scope of information on PPK provided by financial institutions to employing entities regarding dispositions made by PPK participants will be limited,
- a PPK participant will receive an annual additional contribution also if an employer does not finance PPK contributions for him/her, because the PPK participant joined PPE with that employer,
- the conclusion of a PPK agreement for a person who is at least 55 but under 70 years of age is always to be at the request of that person,
- the conclusion of a PPK agreement for a newly hired employee, also already being a PPK participant, will be possible already after 14 days of employment, but not later than on the 10th day of the month following the month in which the period of 3 months of employment expired,
- there shall be a time limit of 7 days for the PPK participant to submit a statement about PPK agreements concluded for him/her and a time limit of 7 days for the employing entity to inform the PPK participant who submitted the statement about the obligation to file – on his/her behalf – an application for transfer payment,
The above-mentioned changes are intended to make the current regulations more precise, so that the administration of PPK will be much easier for employers, and at the same time more employees will be interested in saving money in Employee Capital Plans.
Certainly, one of the key changes is the possibility to enrol a newly employed person as early as 14 days after the date of employment. This will reduce the gap in saving for the future retirement. Another important change is the granting of the status of an employing entity to entities with no identification number. This will allow people employed in companies in which social contributions and remuneration duties are outsourced to third parties to join the PPK. All the changes listed above come into force on 4 June 2022. However, the amendment also provides for the changes to take effect in the autumn or as of July 2019.
Other changes regarding the operation of Employee Capital Plans and the dates of their entry into force:
- settling adjustments to undue payments made to the PPK, the welcome contribution or annual contributions made by the State – comes into force on 21 November 2022,
- changing the deadline for evidencing a welcome contribution and indicating that any unevidenced welcome contributions shall be returned – this change came into force on 21 May 2022 with effect from 1 July 2019,
- permitting the annual contribution to be credited to a PPK account in subsequent years – comes into force on 21 November 2022 with effect from 1 July 2019,
- refund of unevidenced annual contribution – this change came into force on 21 May 2022 with effect from 1 July 2019.
Following the amendment, the operation and administration of the PPK is to be simplified. Therefore, the amendment is to be considered positive.
Learn more: PFR table with the PPK change register
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