Employee Capital Plans – Saving for Your Employees’ Retirement
On 1 January 2019 the Act on Employee Capital Plans Act (PPK) entered into force. It is a new long-term saving system for employee pensions. The PPKs are voluntary, which means your employees may resign from them. However, as an employer, you have a duty to implement them in your company. The time-frame in which you are expected to do this depends on the number of employees in your company.
PPKs in a nutshell
- The money in a PPK account is the employee’s property and is inherited upon the employee’s death.
- The employees may withdraw all their money from the PPK account free of charge, once they reach the age of 60.
- The money may be partly paid out earlier only when the employee is in a difficult situation or wishes to finance his or her own contribution to the purchase of an apartment.
- Your task as an employer is to set up the PPK in your company and choose the financial institution to manage it.