PPK is a universal savings system for employees. The main objective of PPK is to provide the participant with additional money, which can be used after the age of 60, and in exceptional situations earlier.

Participation in PPK is voluntary for employees. Funds accumulated in a PPK participant’s account are private and inheritable. They can also be withdrawn at any time. Automatic enrolment applies to individuals between 18 and 55 years of age.

Contributions to the PPK account come from three sources: the employer, the employee and the state.

PPK savings are invested in defined date funds that vary the level of risk taking into account the age of the PPK participant. The Financial Supervision Authority (Komisja Nadzoru Finansowego) exercises control over employee capital plans with respect to the activities of institutions that operate the programme.

The basic condition for a foreigner to start saving in PPK is that the company employing the foreigner runs the programme. Other minor conditions, related to the employee’s age and his employment periods, exist.

Joining the PPK may make it easier for a foreigner to obtain a residence card in Poland. This is due to the fact that the Office for Foreigners has access to additional information about employed foreigners saving in PPK, which can be another argument for granting the applicant the right of residence.

If the employee’s information given to the employer changes, the employee should immediately update it, i.e. inform the employer of the changes. The employee should ensure, in particular, that the employer has his/her current contact details, i.e. e-mail address and telephone number (these details provided to the financial institution which will keep his/her PPK account will enable efficient contact, if needed).

If the data changes, the PPK participant is obliged to immediately, no later than within 30 days from the date when the change of identification data occurs, inform the financial institution running his/her PPK account about the change.

The PPK participant should also remember to inform his/her employer about his/her PPK accounts if the participant changes his/her place of work.

^*The basic contribution may be less than 2% of remuneration, but not less than 0.5%, provided that the remuneration of the PPK participant earned from various sources in a given month does not exceed 1.2 times the minimum remuneration.

Declaration on reduction of basic contribution and declaration on funding of additional contributions exist and could be submitted by a PPK participant to change the amount of his contributions in the allowed boundaries.

Contributions financed by the employer — both basic and additional — constitute the PPK participant’s income from employment.

PPK savings are participant’s private property, and could be withdrawn at any time in a single payment or in installments. However, which option a given participant decides on will determine whether or not he/she will have to pay capital gains tax on the money withdrawn.