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Advicero Nexia | Employer Solutions: Employee Capital Plans – AUTO-ENROLLMENT in 2023

1. Employer’s information obligation

By February 28, 2023, each entity employing employees is obliged to inform all employees who have so far resigned from making payments to Employee Capital Plans (PPK) about their automatic enrollment in PPK in March 2023. This obligation also applies to employers who have not yet concluded PPK management contract with a financial institution due to the resignation of all employees from PPK. The only exceptions are entities that have been exempted by law from the obligation to create PPK, e.g. employers running Employee Pension Plans (PPE).

Auto-enrollment, in accordance with the PPK Act, takes place every 4 years (currently in 2023, then in 2027).

2. Who is re-enrolled in the PPK?

Automatic re-enrollment in the Employee Capital Plans applies to persons employed by a given employer (employment contracts and contracts of mandate with obligatory contributions for pension and disability insurance) aged 18 to 55, who have so far submitted to the employer a declaration of resignation from participation in PPK. As before, people who are over 55 will still be able to join the Employee Capital Plans on their own request, while people over 70 cannot join the program.

3. How to inform employees?

The provisions of the Act do not specify the form in which the employing entity should inform employees about the auto-subscription to the PPK. This information can therefore be provided both in paper and electronic form. It is important that the employer is able to prove that such an obligation was fulfilled by him in a timely manner. In a situation where the employer fails to comply with the information obligation, he may expose himself to negative consequences in the event of inspection by authorized institutions.

4. How an employee resigns from PPK

Employees who still do not want to be participants in Employee Capital Plans should submit a declaration of resignation from participation in PPK to their employer. The declaration of resignation should be submitted to the employer before the first payment of remuneration in March, but not earlier than on March 1, 2023.

Previous declarations of resignation from participation in PPK submitted by February 28, 2023 will expire at the end of February 2023.

Resignation declarations submitted after March 1, 2023 will be effective until the end of February 2027.

The declaration of resignation is submitted by the employed person in writing on a strictly specified form.

Enclosed you will find the current template of the declaration of resignation from participation in PPK, which you can provide to employees.

If you have any questions, we are at your disposal.

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