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Poland to implement PPK pension plans on 1 July 2019

Poland to implement PPK pension plans on 1 July 2019

Dodano: 2018-06-05

Poland expects to implement the employer-sponsored PPK pension plans on 1 July 2019, as a six month vacatio legis is needed, Minister of Finance Teresa Czerwinska said.

„We are mulling a longer vacatio legis, the project needs to be well prepared,” Czerwinska said. „I think that half a year of such vacatio legis would be needed, that PPK would be launched as of 1 July 1 2019.”

On 25 May the Ministry of Finance presented a revamped draft bill on PPK pension plans, specifying the details of the investment policy and allowing pension funds and insurers to participate in the program.

Poland estimates that 3.5-3.7 mln employees will pay a preferential contribution to employer-sponsored pension plans PPK of at least 0.5% as the qualifying threshold will likely settle at 110-115% of minimum salary.

In the latest tweak to the PPK draft bill the Finance Ministry said that the lowest earners will be able to pay in at below the 2% standard individual contribution to PPK, but not below 0.5%, while still receiving a full standard 1.5% contribution from their employer.

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