The role of institutions from the PFR Group in the implementation of Employee Capital Plans
On 1 January 2019, the Act on Employee Capital Plans (PPK) became effective, implemented under the Strategy for Responsible Development.
Employee Capital Plans is a universal and voluntary long-term saving system, available to all employed persons who are subject to compulsory pension and disability insurance. The system does not involve only the employee, but the joint participation of employers and the state.
PPKs have been developed to:
- increase the financial security of Poles
- affect the development of the economy, enterprises and work places
- increase employees' private retirement savings."
The Act on Employee Capital Plans (PPK) creates new opportunities for savings for employees. The extension of the long-term saving system with this new solution is modeled on the experience of many countries in which similar employee programs operate. While working on the Act on Employee Capital Plans (PPK), best practices and the most effective mechanisms were selected which were then adapted to Polish market conditions. As in other developed countries (from Germany, through Great Britain and Scandinavia, to the United States, Canada and New Zealand), in Poland, it will be employer's the statutory obligation (assisted by the state) to create a Employee Capital Plan system for employees.
Polski Fundusz Rozwoju S.A. plays an important role in implementing Employee Capital Plans (PPK) and organizing the implementation of the PPK program.
It has developed a system of records and settlements and is a kind of information center with regard to the functioning and principles of Employee Capital Plans.
PFR is responsible for keeping a registry of financial institutions authorized to offer PPK and records of PPK participants. The PPK Record System will be developed by 1 July 2019. At that time, it will be integrated with all websites supporting PPK so as to aggregate information from the entire PPK market on an ongoing basis.
PFR has appointed a subsidiary of PFR, Portal PPK sp. z o.o., to run an internet portal dedicated for employers and employees.
The MojePPK portal is a user-friendly website where all necessary information regarding the PPK program is clearly presented. On the portal, employers may find information on how to create a PPK, documentation standards, and a list of financial institutions allowed to offer PPKs, as well as legal acts, guides, questions and answers, leaflets and posters for their employees. With regard to employees, the Portal also presents a series of questions and answers and a calculator allowing for calculation of the value of funds accumulated in a PPK.
The portal will also present the financial results of institutions handling PPKs, data on the number of clients they handle, profits they receive for their clients and fees they collect as soon as the first institutions offering PPK provide such results.
PFR TFI, in which Polski Fundusz Rozwoju is the sole shareholder, will act as the designated financial institution.The key task of PFR TFI as a designated institution will be to provide both employers and employees with full access to the PPK offer.
PFR TFI may not refuse to set up a program for a particular enterprise. PFR TFI will conclude a PPK management agreement with any employer that does not select any other financial institution. This solution is intended to ensure the availability and universality of the program among employers and employees. PFR TFI operates on market principles, which means that, as all other entities that offer PPK, PFR TFI will be obliged to set up funds with a defined date, i.e. funds that match the allocation of assets to the age of persons making savings.
More information on the PFR TFI website.