Obligation to establish PPK in case of PPE suspension for more than 90 days

Employers who run Employee Pension Schemes (PPEs) but have suspended contributions for a period exceeding 90 days are required to establish PPK (Employee Capital Plan). What are the deadlines for concluding a contract for operating and managing a PPK?

Entities which have suspended their PPE contributions for more than 90 days in total – if an employer has suspended and resumed contributions several times, the total number of the days of suspension shall count – are required to conclude contracts:

  • Contract for the operation of PPK – at the latest by the 10th day of the month after the lapse of 3 months from the 91st day of suspension of contributions to PPE
  • PPK management contract – at the latest 10 working days prior to concluding an agreement to operate Employee Capital Plans

Pursuant to the Act on Employee Pension Schemes, employers have the possibility to suspend payment of basic PPE contributions or temporarily limit their amount, e.g. in the event of a worsening of the company’s financial standing. Such a decision may be made:

  • unilaterally – by the employer, without acceptance of employee representation
  • on the basis of an agreement with employee representation

Both the suspension of contributions and the reduction of their amount must apply to all participants of the Employee Pension Scheme.

Read also: Deadline for PPK implementation postponed by 6 months

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