The Warsaw Voice » Business » News - August 29, 2018
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Bill on PPK adopted
Poland's cabinet adopted a draft bill introducing employer-sponsored pension plans PPK and sees the cost of the program at PLN 35-40 billion in the next 10 years, PM Mateusz Morawiecki announced at a press conference.
The government "will pay some PLN 35 billion, likely 40 or more billion into the voluntary individual accounts for future retirees," Morawiecki said. "In this way we wish to contribute to voluntary savings."
According to an impact study to updated legislation released mid-July government expected to shoulder PLN 34.77 billion in public finance sector spending to support PPK over the course of the first ten years of their functioning.
PPK will be "universal and voluntary," Morawiecki underlined.
According to earlier comments of government officials the program is to be launched mid-2019.
Finance Minister Teresa Czerwinska confirmed some key elements of the new program:
- premiums on the side of employer: basic premium at 1.5% of the basis for pension and disability benefit premiums and additional premium of up to 2.5%
- premiums on the side of employee: basic premium of 2.0% and additional premium of up to 2.0%; lowest earners (up to 120% of minimum wage) can reduce premium down to 0.5%
- welcome bonus from the state: PLN 250
- annual bonus from the state (for those paying premiums for at least six months in a year): PLN 240