On 4 October Poland’s lower house of parliament passed a bill introducing employer-sponsored pension plans (PPK). The bill was passed with 229 votes in favor and 197 against.
As the Prime Minister Mateusz Morawiecki stated, the new Employee Capital Pension Plan (PPK) would be another social assistance programme launched to ensure financial security.
Under the new system, employers would contribute the equivalent of at least 1.5 percent of employees’ gross wages to individual retirement savings accounts every month.
Employees would in most cases be required to contribute no less than 2 percent of their gross monthly wages, and the government would make a supplementary contribution of PLN 240 every year, in addition to a one-off welcome payment of PLN 250.
The PPK bill was approved by the government in August. The bill will enter into force in January 2019 with a six-month vacatio legis, then roll-out implementation across the corporate sector and be fully up and running nationwide by 1 January 2021.
The bill now goes for further debate to the upper house of Poland’s parliament – the Senate.
