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Employee Capital Plans (PPK) – agreements are obligatory

27 October 2020 is the deadline for concluding the ECP (PPK) management agreement with the selected financial institution.

Concluding the agreement within this period is mandatory for companies:

  • which, as at 30.06.2019, had at least 50 employees (the so-called 2nd stage of implementation of the ECP (PPK));
  • which, as at 31.12.2019, had at least 20 employees (the so-called 3rd stage of implementation of the ECP (PPK)).

The obligation to sign an ECP (PPK) management agreement cannot be left to the last minute. According to the Act, the agreement should be concluded in an electronic form allowing its contents to be recorded on a durable medium. A general statutory provision allows individual financial institutions to create their own procedures for signing the agreement, which may take more than one day. In addition, sending the agreement in electronic form under heavy server load may cause the processing of the agreement to last more than 24 hours.

Employers who do not sign the ECP (PPK) management agreement with the selected financial institution by 27 October 2020 risk to pay a penalty in the amount of 1.5% of the salary fund from the previous financial year.

At the stage of selecting a financial institution, the employer should fulfil a number of information obligations towards employees (preferably in writing), i.e. to inform, among others, about:

the objectives of joining the ECP (PPK);

the value of contributions;

financial consequences (the part financed by the employer is taxed);

welcome payment, annual subsidies;

deadlines and possibility to submit a declaration on resigning from making payments to the ECP (PPK);

possibility to join the ECP (PPK) for workers aged 55–70;

the selection process to be repeated every 4 years.

In addition, the selection of the financial institution with which the ECP (PPK) management agreement must be signed should be preceded by consultations with employee representatives. Consultations should be documented, for example in the form of minutes.

The deadline for consultations was 25 September 2020. However, failure to meet this deadline does not trigger financial penalties.

If no agreement is reached with the employees by 25 September 2020, the employer may decide on their own on the choice of the financial institution that shall manage the ECP (PPK).

When selecting a financial institution, a number of criteria listed in the Act should be taken into account, so it is worthwhile to carry out even late consultations  with the representation of employees. Consultation with the crew protects the employer from possible claims in the event that the selected institution achieves poor results in the future.

Another important date for employers is 10 November 2020. By this date, an agreement on running the ECP (PPK) should be concluded on behalf of all participants in the ECP (PPK).

The participants of the ECP (PPK) are:

  • mandatorily: persons who are over 18 but under 55 years of age and have not submitted a declaration of resignation to their employer and are subject to compulsory pension and disability insurance;
  • voluntarily: persons who are over 55 but under 70 years of age and have submitted a declaration to their employer on joining the ECP (PPK).

As in the case of the ECP (PPK) management agreement, the agreement on running the ECP (PPK) should be concluded without delay. The agreement is concluded in electronic form and due to the probability that the servers of financial institutions may be heavily loaded, the agreement may be processed for more than 24 hours.

Late conclusion of the agreement on running the ECP (PPK) may result in a fine of between PLN 1,000 and PLN 1,000,000 imposed on the employer or a person obliged to act on their behalf.

Other employers will be required to create the ECP (PPK) from 1 January 2021. The following deadlines must then be observed:

  • 23 April 2021–the deadline for concluding the ECP (PPK) management agreement;
  • 10 May 2021–the deadline for concluding the agreement on running the ECP (PPK).

Employers from Stage 4 of the ECP (PPK) implementation plan are encouraged to acquaint themselves with the topic of ECP (PPK) now. This will significantly improve the implementation of the ECP (PPK).

To learn more details on the ECP (PPK) and dates of free training for employers and employees, please visit: