PPK – Employee Capital Plans (ECP)
Long-term retirement saving program for employees designed by the employers and the state.
SAVING SYSTEM – common, voluntary, profitable
YOUR MONEY – for the future, private, inheritable
The ECP programe was established on the basis of the best practices in countries like Great Britain, Scandinavia, Canada and many others, where similar solutions have been successfully functioning for years.
Where do the savings come from? The structure of funds in your account is as follows:
You/the employee – from 2% up to 4% of your gross remuneration (if your remuneration does not exceed 120% of the minimum remuneration, the payment will be decreased even to 0,5%, your call)
Your employer – from 1,5% (basic contribution) up to 4% (additional contribution) of your gross remuneration
State – PLN 250 one-off welcome payment + PLN 240 annual surcharge
Every Employer automatically subscibes to the program all Employees between 18 and 55 years old, who are obligatory covered by the retirement and disability insurance, provided that those persons did not resign from contributions to the Employee Capital Plans. Persons who are between 55 and 70 years of age can join the program based on their own application.
Moreover:
♠ the gathered funds are only yours and they are inheritable,
♠ the gathered capital is managed by financial institutions that fulfil stringent criteria,
♠ you can resign from making contributions to the ECP at any time,
♠ you can return to saving in the Employee Capital Plans at any time.
After the age of 60 you can commence to withdraw the gathered savings, whether you keep working or not.
You withdraw 25% of your funds at once and the remaining 75%, in at least 120 instalments (for 10 years or more).
The circumstances when you can use your savings before you reach the age of 60 include:
♦ in case of serious disease – within the family (husband/wife/child) up to 25% of funds with no return obligation,
♦ to cover your own contribution if you take a loan for a flat or house construction, up to 100% of funds with return obligation in the period of 15 years (for persons below the age of 45),
♦ if you decide to transfer the savings to another account within the framework of the Employee Capital Plans (e.g. if you change the employer).
You can withdraw all funds at any moment – they will be decreased by:
◊ 30% of the contributions made by your employer (transferred to your individual ZUS account),
◊ surcharges from the state,
◊ due tax on capital gains.
For further information reffer to the links down below, where you will find PPK in practice
Foreigners in Employee Capital Plans
What is good to know about the Employee Capital Plans (PPK)
