Auto-enrolment for PPK – declarations of resignation

Employee Capital Plans (PPK) are a voluntary, private savings system resulting from cooperation between the employee and the employer. Established by the Law of October 4th, 2018, the system was implemented in IV stages, with enrolment depending on the number of employees in a given enterprise.

Despite the voluntary status, the Auto-Enrolment mechanism is in force under the PPK, which should be especially remembered at the beginning of March this year. The auto-enrolment dictates that each employee who has not submitted a special declaration is automatically incorporated into the PPK program.

Starting from March 1st, 2023, all employees have the opportunity to submit special declarations of resignation from participation in the PPK.

To make it easier to make a decision and take the appropriate steps, below we answer the basic questions about PPK auto-enrolment.

From when can declarations be made?

Declarations can be submitted from the beginning of March 2023.

Is the declaration of resignation final? Does it need to be repeated periodically?

Under the Law, auto-enrolment is renewed every 4 years, so if an employee submits a declaration in March this year, it will be valid until March 2027.

Is it possible to appeal the decision to resign after submitting the declaration?

Employee Capital Plans is a system designed to include as many employees as possible, which is why the possibility of returning to participation in the program is simple and can be done at any time – by submitting a declaration of joining the PPK. Contributions to PPK will be charged starting from the month following the month of application.

What should a declaration of resignation contain?

Fortunately, the resignation declaration template is not a complicated document that requires a lot of data to fill out. The document is used only for internal purposes, as information for the employer, and is not passed on to entities with which the company has signed contracts for running PPK.

The template of said declaration can be downloaded directly from the mojeppk.pl website.

In what form should declarations be made?

The form of submitting a declaration of resignation is specified in art. 78 § 1 of the Civil Code, which states that to maintain the written form of a legal transaction, it is necessary to put a handwritten signature on the document containing the content of the declaration of intent.

This means that the declaration can be submitted in writing on paper (with a handwritten signature) or electronically using a Qualified Electronic Signature.

Who is eligible for auto-enrolment?

Auto-enrolment applies only to employees between 18 and 55 years of age.

Who is not covered by auto-enrolment?

Employees over 55 (but under 70) may join the PPK only by applying for the conclusion of a PPK agreement (on their behalf and for their benefit).

When will contributions to the PPK be collected?

The collection of payments to the PPK starts at the beginning of April. The employer may make contributions until April 17th. Therefore, it is worth making a decision on participation or resignation from the PPK program already in March.

Is the employer obliged to inform the employee about the auto-enrolment to the PPK?

Yes. The employer should inform employees about the possibility of submitting a declaration of resignation from participation in the PPK program. The employer must also inform that starting from April 1st, 2023, it will resume making payments to the PPK for employees. The employer has until February 28th, 2023, to send the information. All employees without exception must receive it – even those who have announced their will to resign from participating in the PPK.

Does auto-enrolment also apply to micro-enterprises?

Yes. Auto-enrolment also applies to people employed by micro-entrepreneurs, even if the PPK program has not been implemented so far. In such a case, if at least one employee shows a willingness to participate in the PPK, the micro-entrepreneur will have to sign appropriate contracts for the management and for operating the PPK.

Therefore, also in micro-enterprises, information about auto-enrolment and referrals to employees must appear until February 28th.

Legal basis

Article 16 par. 1, art. 23 of the Act of October 4th, 2018, on employee plans (i.e. Journal of Laws of 2020, item 1342, as amended).