Employee capital plans – Possibility of discontinuing contributions, early withdrawal of assembled funds

The underlying idea of PPKs is that, as far as the employees are concerned, they are voluntary. The corollary is that, at any given moment, an employee who has decided to join in a PPK may opt out by submitting a declaration to that effect.

Discontinuation of contributions (opting out)

A contributions discontinuation by an employee capital plan participant shall not be definitive. On the one hand, a PPK participant who submits such a declaration remains free to resume contributions to her/his employee capital plan at a future date. On the other, a participant who does not want to contribute will be asked to repeat her/his declaration to that effect at 4-year intervals, and if the employee does not fulfil this duty her/his employer will be automatically obligated to resume PPK contributions on that employee’s behalf. Certain exceptions apply – the latter mechanism will not kick in for PPK participants who turn 70 before 1 April of the year in which 4 years since their last opt-out declaration; in the case of an employee who turns 55 in this period, meanwhile, contributions will resume exclusively at such participant’s express request. (…)

The full text (in Polish) is available at GESSEL and Gazeta Prawna.