The ECP programme is one of social solidarity and responsibility for employers, employees and the State. ECPs were created for employees to help them save and multiply their private savings for their future – irrespective of the pension system. At the same time, an ECP expresses the employers’ responsibility for employees and their families. It is also a programme characterised by very important social and economic dimensions. In teaching systematic long-term saving, it helps lay the foundations for a stable national economy.
Financial security of employees and their families
Saving for future in a simple and safe manner
Releasing local capital
Favourable structure of household savings
The basic premise of Employee Capital Plans (ECPs) are regular contributions made over the long term.
All payments funded by the employer and the employee are transferred by the employer to the financial institution managing the program, where they are deposited into the participant's individual account. The funds are invested in a defined-date fund – tailored to their age.
The amount of the basic payment made by the employer is 1.5% of the employee's gross salary. The employer may decide to make an additional contribution, which can be up to 2.5% of that salary. In turn, the basic payment from the employee is 2% of their gross salary. The employee also has the option to increase their contribution by an additional payment, which can be up to another 2% of the salary. Payments from the employee will be deducted from the salary, but increased by payments funded by the employer and the state remain their private property - in the form of an investment for the future.
It is worth noting that people with the lowest earnings, whose amount does not exceed 1.2 times the minimum wage, can reduce their basic payment to 0.5% of their salary. Importantly, reducing the basic payment will not affect the amount of payments from the employer and subsidies from the state.
Savings funded by the employee and employer are supplemented by regular state subsidies. At the beginning of saving, each new participant receives a welcome payment of 250 PLN, and then an additional 240 PLN annually as a bonus for long-term saving.
To maximize the ease of use of the opportunities offered by ECPs, we have prepared a set of online tools for employees and employers. Thanks to the web service, each participant can quickly check the balance of funds in their account and submit orders, and the employer can efficiently manage the program. Meanwhile, thanks to calculators - both employees and employers - can check the amount of contributions and the estimated value of savings over a specified time horizon.
PFR TFI S.A.
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The functioning of ECPs is based on a tripartite contribution mechanism funded by the employee, employer, and the state. This synergy means that the amounts regularly deducted can build significant capital.
PPK benefits everyone - employees, employers, and the Polish economy. Primarily, employees gain from ECPs, as the program was designed with them in mind. Thanks to employer contributions and state subsidies, employees save more and more efficiently. The program's simplicity is also an advantage - the employer makes the contributions, and the employee does not have to perform practically any actions related to its ongoing service. They also do not need to know investment products and choose strategies, because these issues are regulated by law, defining an investment policy adapted to the employees' age. The funds accumulated in the PPK account are fully private, so the participant can access them at any time and use them if needed. It is most beneficial to do this after reaching the age of 60, but funds can also be withdrawn earlier, for example, in case of illness or as a personal contribution when buying a house or apartment.
Employers can also benefit from introducing ECPs. The contributions they make to employees' individual accounts are a form of salary increase deferred over time. Moreover, exempting their contributions (both basic and additional) from pension and disability insurance contributions is a favorable solution from the employer's perspective. This provides employers with a new tool for motivating and rewarding employees, especially since they can decide to increase the contribution they finance up to 4% of the salary and tie its level to, for example, the length of service. The social and image aspect is also important - promoting participation in ECPs expresses employers' responsibility for the financial security of their employees and their families in the future.
ECPs also brings numerous benefits to the economy. All funds accumulated within ECPs are invested, meaning a new stream of capital. Experiences from other countries with similar programs show that they support the development of a stable capital market. In this way, by providing a source of financing for enterprises, it contributes to increasing the economic potential of the entire country.
The key role in the ECP system is played by companies from the Polish Development Fund Group, whose goal is to provide tools that foster development and invest in sustainable social and economic growth.
Polish Development Fund is responsible for organizing the system, including the registration of participants.
PFR Portal PPK conducts educational activities, training, and hosts a knowledge portal about ECPs at www.mojeppk.pl.
Meanwhile, PFR TFI acts as the designated institution, ensuring the continuity of managing participants' funds in case another financial institution managing the program is unable to provide services. PFR TFI also ensures universal access to ECPs for all employers. We are ready to sign an ECP management agreement with any interested entity. In managing ECPs, we use the knowledge and experience of the entire PFR Group and ensure that our offer best meets the market needs and fulfills customer expectations.
Along with the fulfilment of the designated institution’s obligations, we carry out activities under the same conditions as other Investment Fund Companies (Towarszystwa Funduszy Inwestycyjnych – TFI); that is why we care for the adjustment of what we offer to meet market needs and to fulfil the clients’ expectations.
records of participants
register of financial institutions offering ECPs
best practices in ECP management
widespread access to ECPs
support in ECP management for each employer and employee
training for employers
presentation of financial institutions
