Despite the relatively short period of validity of the Act on Employee Capital Plans, it has been amended by the legislator. The Act of 16 May 2019 amending the Act on Employee Capital Plans, the Act on the Organization and Operation of Pension Funds and the Act – Banking Law (hereinafter the “Act on ECP”) introduced, among others, following changes to the existing regulations:
- changes in the definitions of “employed persons” (article 2, item 1, item 188 of the ECP) and “remuneration” (article 2, point 1, item 40 of the ECP)
The amendment expanded the catalog of persons employed to include persons on parental leave or receiving maternity allowance (or an allowance in the amount of maternity allowance).
In the previous legal status, these persons were excluded from the catalog of employed persons and could not be included in the calculation of number of employees, which is a decisive factor in determining the date of implementation of ECP in a given entity under the regime of the Act on ECP.
The new wording of the term “remuneration” is aimed at abolishing the limit of 30 times the basis for payments in ECP.
- new obligation to provide information to PFR imposed on excluded entities (Article 8 of the ECP Act)
The binding provisions exempt from duty to implement ECP, the entities that have implemented ERP (Employee Retirement Program), charge and pay basic contributions amounting to at least 3.5% of remuneration and if at least 25% of employed persons have joined ERP.
The Polish Development Fund (PDF) requests all employers (even those excluded) who have not concluded a management contract for the ECP within the deadline, to fulfill this obligation.
In order to avoid unnecessarily prolonging the procedures, the amended regulations introduce, for employers who are exempt from creating ECP, an obligation to provide information on meeting conditions that determine whether the entity is exempt from creating ECP or not.
- limiting the limit of payments to ECP up to 50,000 dollars a year (Article 25 of the ECP Act)
The ECP Act introduced a maximum subsidy limit for all participant’s ECP invoices. This limit, in a given calendar year, is the equivalent (in PLN) of 50,000 USD.
According to the amended regulations, after exceeding this limit, it will not be possible to make further payments and additional payments to the ECP participant’s account.
- enable providing information to participants of the ECP using the teleinformatic system of financial institution, and in the absence of such a possibility – in paper form
- enable the use of a mechanical signature at the request of the employing entity to conclude a management agreement for the ECP or for providing information on the conclusion of a management contract for the ECP
- introducing an additional condition to collecting remuneration by the management entities of the ECP for achieved results, in the form of the necessity to obtain a rate of return by an investment fund, a pension fund or a sub-fund
- deviation of provisions regarding the deadline for making payments in the event of paying wages in shorter periods of time. that month
- introduction of changes in the rules for granting a welcome deposit (art. 31§1 of the ECP)
According to the amended provisions, the ECP participant is entitled to a welcome deposit, which is at least 3 full calendar months if the basic payments financed by the participant in the PPK for at least 3 months were made during the period of participation in the TNP.
- introduction of provisions allowing for independent decision regarding joining the PPK (article 133 of the PPK Act)
The previous regulations indicated explicitly that they do not apply to the employing entity which, within the time specified in art. 134 sec. 1 runs PPE and calculates and disburses basic contributions within the meaning of the Act of 20 April 2004 on employee pension schemes to PPE in the amount of at least 3.5% of remuneration, if at least 25% of persons employed in a given employing entity have joined the PPE.
The amended provisions provide that the employing entity referred to above has the option of deciding whether the provisions of the Act will apply or not.
- introduction of changes in the provisions regarding the basic payment amount
- updated definition of the represented trade union
D.Dobkowski sp.k. LP provides services including in the scope of developing internal regulations regarding the introduction of ECP in companies, supports employers in the selection of a financial institution managing ECP, advises on the conclusion of a management contract and contracts for operating ECP with a financial institution, preparation of a plan and implementation schedule of the ECP.
If you would like to obtain more detailed information amended provisions, or needed support in adjusting the documentation, please contact us.