When should I implement the Employee Capital Plans (PPK)?

Some entrepreneurs who have not yet implemented the Employee Capital Plans will have to do so this autumn – the deadline for executing management contracts for PPK, for entrepreneurs employing at least 20 persons, is 27 October 2020.


PPK participation is voluntary for employees, and in principle the employers are obliged to create PPK. The obligation to create PPK applies to all employers who employ at least one person who is obligatorily covered by statutory retirement and disability insurance.


Until now, PPK has had to be implemented by the largest entrepreneurs, employing at least 250 persons. For entrepreneurs engaging at least 50 employees, the deadline for implementation of PPK was initially scheduled to be at the turn of April and May this year, however, due to the coronavirus-induced epidemic threat, this deadline was postponed to autumn.


Due to the postponement, employers who engage both at least 20 people or at least 50 people must:

  • conclude contracts for the PPK management by 27 October 2020,
  • conclude contracts for the PPK operation by 10 November 2020.


However, it is not advisable to postpone the implementation of the PPK until the last moment, as each entrepreneur should carefully and properly prepare for the implementation, which in particular consists of:


  1. training the managers in the scope of the PPK regulations,
  2. preparing appropriate internal procedures and documentation,
  3. informing employees about their rights and obligations related to PPK,
  4. selecting the financial institution, with which the agreements for the management and operation of the PPK will be concluded (including the assessment of the conditions proposed by financial institutions for the management of funds accumulated in the PPK, their effectiveness in asset management and their experience in managing investment funds or pension funds, and consult the choice with the company’s trade union organization or employee representatives).

Preparing for the implementation of PPK can therefore take a substantial amount of time. The above mentioned activities should be carried out prior to the implementation of PPK. Following implementation, further obligations will be imposed, such as information obligations towards employees and the selected financial institution, as well as the obligation to make payments in the appropriate amount and to keep the documentation related to PPK.


Failure to comply with the obligations imposed by the PPK Act may result in the imposition of a fine on persons acting on behalf of the entrepreneur, e.g. on board members.


Smaller entrepreneurs (employing at least one person), will in principle have to implement PPK at the turn of April and May 2021.


If you are interested in obtaining detailed information, please contact Dominik Załęski – dominik.zaleski@keller.pl, phone +48 71 781 84 70.


The above materials are for information purposes only and do not constitute legal advice. If you are interested in obtaining more detailed information, please contact our Law Firm.


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