Poland: First mandatory PPK auto-enrollment starts in 2023
By Alliant Global Knowledge Center
Published 15 January 2023
Starting 1 January 2023, certain provisions of the Act of 4 October 2018 on Employee Capital Plans (Ustawa z dnia 4 października 2018 r. o pracowniczych planach kapitałowych) come into effect requiring employers to periodically (once every 4 years) auto-enroll their employees aged 18 to 55 years in an employee capital plan (Pracownicze Plany Kapitalowe - PPK), regardless of when they initially joined a PPK plan.
This automatic enrollment (provided for by the PPK Act at its inception), or so-called autosave starts in 2023, subject to a mandatory advance notice provided by the employer, prior to 28 February 2023.
All employers are now required to automatically enroll existing and new employees over 18 years but less than 55 years of age in a PPK. Older employees up to the age of 70 may decide to opt into a PPK plan. Employees beyond the age of 70 years are not eligible for enrollment.
Nevertheless, PPK enrollment remains optional, and employees may resubmit (in writing) a declaration of resignation from PPK membership to their employer.
Enrollment of new employees
In terms of the timing of enrollment, Article 16, Para. 1 of the Act of 4 October 2018 on Employee Capital Plans provides that the employer must enroll an employee (aged between 18 and up to 55 years) no earlier than after 14 days after the start of employment and no later than the tenth day of the month following the month in which the employee completed 3 months of employment, unless the employee declares , in writing to the employer, the deadline for not making PPK payments, or they separate from the employer.
Enrollment of existing employees
Regarding employees aged 18 to 55 years who opted out in the past, but do not resubmit a new declaration opting out of the PPK plan by 1 April 2023, the employer must automatically enroll them in a PPK starting 1 March 2023; and must pay contributions (both employer and employee contributions) based on the employee’s pay in March 2023 to the PPK by 17 April 2023 at the latest.
However, participation in a PPK remains voluntary, so employees who omitted to submit a new declaration opting out of the PPK prior to 1 April 2023, can still opt out but at a later date. Employees will be able to submit a renewed declaration of resignation from PPK from 1 March 2023.
The next automatic enrollments will be in 2027, then 2031, etc. Auto-enrollment dates and deadlines are the same for all employers, regardless the PPK implementation dates.
Noteworthy dates
By 28 February 2023, employers must inform all employees who have submitted a declaration of resignation from participating in the PPK about the automating resumption of enrollment and contribution payments to the PPK. This date is also the last day of validity of any previously submitted declaration of resignation.
The first payments will be calculated and withheld based employees’ salaries paid in March 2023. The employer will transfer them to the financial institution between 1 April 2023 and 17 April 2023. If an employee submits a declaration of resignation from the PPK before the withheld contributions are transferred to the financial institution, the employer will have to adjust the recorded contribution amounts and reimburse the employee.
There is no statutory date for the start of the information dissemination specifically related to PPK auto-enrollment. However, the required auto-enrollment information campaign is not to be melded with employee training activities. It is worth noting that this information must also be communicated to new recruits before 1 March 2023.
Declarations of resignation cease to apply from 1 March 2023, regardless of when the declaration was submitted to the employer.
Employer Actions
Starting 1 January 2023, certain provisions of the Act of 4 October 2018 on Employee Capital Plans come into effect requiring employers automatically enroll their employees aged 18 to 55 years in a PPK, regardless of when they initially joined a PPK plan.
Additionally, the provisions of the Act require employers to implement an information campaign to inform their existing and new employees of the automatic PPK enrollment and of their rights by 28 February 2023. While there is no statutory start date for the information campaign, it is not to be combined with ordinary employee training activities.
Employers are therefore advised to design and implement a PPK auto-enrollment information campaign.
