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Employee Capital Plans (PPK). Autosave even if you opted out. important date

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2.52 million people have already opted for Employee Capital Plans (PPK), Robert Zapotoczny, the president of PFR Portal PPK, informed. He also reminded that soon there will be another auto-registration to the PPK.

Until February 28, 2023, the employer is obliged to inform about the so-called re-enrolment in the PPK of persons who have submitted a declaration of resignation from making payments. At the same time – according to the information on the PPK website – declarations of resignation submitted so far are valid until February 28 from participation in Employee Capital Plans.

Declarations of resignation cease to apply from March 1, 2023, regardless of whether such a declaration was submitted a year or two earlier.

Employee Capital Plans (PPK). Conclusions and declarations

In order to be enrolled in PPK, employees aged 18 – 55 do not have to do anything. Persons who will turn 55 before April 1, 2023, should submit an application for joining or resuming the calculation of contributions to PPK by February 28, 2023. Due to the so-called re-subscribing to the PPK, the re-declaration of resignation from making payments to the PPK may be submitted at the earliest on 1 March 2023. It may also be submitted at any other date after that date.

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Employee Capital Plans (PPK) is a voluntary, private, long-term saving system for employees, implemented by the employer, but co-financed by the employee, the employer and the state. The legislator decided that every 4 years the so-called re-save to the PPK. The next one is this year.

Automatic save

– In many countries, an inseparable part of retirement security, which is a significant supplement to the public system, are pension programs created in the workplace. In order to promote participation in these programmes, some countries, e.g. USA, Great BritainNew Zealand or Turkeyintroduced the so-called automatic enrollment in these programs, the president of the PFR Portal PPK told PAP.

He argued that the best practices and the most effective mechanisms were selected from foreign programs based on automatic enrollment and adapted to Polish realities.

– The default option should be to sign up for the saver program and leave the option to opt out later. Foreign experience shows that the presence of behavioral economy solutions, including the so-called auto-save, has a positive effect on participation in additional saving programs for pensioners, said Zapotoczny.

Impact on investing funds

He reminded that PPK participants have an impact on how their funds are invested. If the PPK participant does not change anything, it will remain assigned to the fund of a defined date depending on its date of birth.

– PPK participant (…) is assigned to the fund depending on his age, for example, an employee who turns 60 in 2040 will be in the PPK 2040 fund. As the participant approaches 60, the investment policy of the fund will be adjusted in such a way as to ensure proper security of the entrusted funds – said the president of the PFR Portal PPK.

He noted that each PPK participant may decide that his contributions to the PPK should be transferred to one or several other funds of a defined date other than the one appropriate for his age.

More and more people use PPK

He added that despite the unfavorable circumstances, the increase in the number of PPK participants by an average of 20,000 people a month is noticeable. – 2.52 million people who have 2.86 million active accounts have already used the option of saving in PPK. These are people who have become convinced of this program, among others, because contributions to the PPK are financed not only by the participant himself, but also by his employer. A PPK participant can also count on a welcome payment and annual subsidies from the state – said Zapotoczny.

He informed that the current value of net assets of funds of a defined date amounts to nearly PLN 12 billion.

He noted that the analysis of the increase in participants in programs with automatic enrollment shows that participation in such programs develops gradually, along with the building of awareness that it is important to have additional funds for the period after the end of professional activity.

– The same mechanism, in our opinion, will also work in Poland. However, this requires time and stability of program rules. Already the best ambassadors of the PPK are its participants – said Zapotoczny.

PFR PPK Portal

PFR Portal PPK is part of the Polish Development Fund Group, which is responsible for conducting the activities specified in the Act on Employee Capital Plans.

The main mission of the https://www.mojeppk.pl/ portal is to collect and provide information on the functioning of PPK.

Main photo source: Photocon / Shutterstock.com



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