Finding a simple and cost effective PPK plan

Pension systems are under construction all over the world, and Poland is no exception. We are in the midst of a major transformation with consequences for corporate pension plans in businesses operating in Poland.

Employee Capital Plans (PPK)

Companies are now obliged to offer PPK and contribute at least 1.5% of the individual total salary. Companies which employ between 50 and 249 employees will be covered by this legislation and have to have a contract in place by April 2020.

Under certain circumstances, the new PPK plans will work as an auto enrollment model. However, companies offering PPE will not be forced to set up PPK. In order to maintain this exception, the employer contribution in PPE will have to be at the level of 3.5% of individual total salary.

PPK assets will be managed by private investment fund companies as well as dedicated governmental institution because the Polish model follows UK Auto Enrollment and NEST, the National Employment Savings Trust concept.

Important deadlines for employers in 2020

  • 1 January: employers become subject to the PPK Act
  • 24 April: you have until this day to sign a PPK management agreement with a financial institution
  • 11 May: you have until this day to sign a PPK participation agreement with your chosen financial institution on behalf and to the benefit of the employees

Considerations when selecting a PPK

Below are some questions and considerations that need to be taken into consideration when selecting a PPK plan for your organisation. We can partner with you to evaluate your PPK options and ensure that you are delivering the best outcome for your organisation, and your people.

  • What does my company want to achieve with the PPK?
  • What will my employees think about the PPK?
  • How will it impact my overall value proposition?
  • Will it be possible to build a PPK plan that is more valuable than the basic statutory plan?
  • What are my legal obligations and what more can I do when it comes to PPK?
  • Does the provider I pick provide me with an advantage in the labor market?
  • How much (costs, time, energy) will I have to “invest” in PPK?

Mercer’s benefits prevalence report

It is important to have a strategy in place for your overall benefits package, because what you offer your workforce, ultimately impacts the value that they place on you as an employer.

Benefits (including pension solutions) are key in attracting and retaining staff. Mercer can help you compare and benchmark your benefits plan against the market place and provide advice on the benefits plans that are both cost effective and of high value to your employees.

 We can help you achieve this by offering the following services, all of which can be provided based on general industry, specific industry or a peer cut. If you are interested, please complete the contact us form and we will get back to you.

Download sample of the report >>

Speak with a Mercer Consultant

We’re eager to speak with you. Please provide your details below.

*Required Fields