Poland: Retirement: PPK Auto-Enrollment Begins January 2020

Poland: Retirement: PPK auto-enrollmentThe PPK auto-enrollment mandate went into effect for Poland’s employers with at least 50 employees, but no more than 250, on January 1, 2020. Larger employers were required to set up Employee Capital Plans or ‘PPKs’ last year. In comparison to traditional state pension pillars, these programs are based on the co-operation between employers, employees, and the state.

PPK Enrollment Ages

Employees between 18 and 55 years old are subject to PPK auto-enrollment. Employees older than 55 must opt in. Each employee can opt-out, which means for the employee enrolling in the PPK is voluntary. However, it is mandatory that the employer sets up and offer the plan.

Abolition of the Second Pension Pillar

In addition to the PPK, whose enrollment is reportedly off to a slow start, Poland completes the abolition of its second pension pillar this year. Currently, the Polish pension system has three pillars. The first pillar is mandatory and the Social Security Institution (ZUS) runs it. The second pillar is also mandatory and private institutions (PTEs/ Open Pension Funds) manage it. Until last year the third pillar was voluntary, but the PPK now changes this.


Many thanks to Asinta’s Polish Partner MAI CEE for providing this article about PPK auto-enrollment in Poland.