PPK. Simply worth staying.

PPK is a long-term investment program designed specifically for employees. It is co-financed by the employees, the employer and partly by the state, and the payments go to the employee’s private account.

Every month, the employer automatically transfers your and their part of the payment to your private account. You receive a welcome payment from the state and an annual payment once a year. Then, these funds are invested in the capital market through Target-Date Funds managed by authorised financial institutions.

Participation in PPK is voluntary, however, employees aged 18 to 55 who opt out from the participation are subject to automatic enrollment, which takes place every 4 years.

• basic payment - 1.5% of your gross salary,
• additional payment – up to 2.5% of your gross salary.

• basic payment - 2% of your gross salary, which is deducted from your net salary. You can reduce your basic payment to 0.5% of your gross salary if your total income does not exceed 1.2 times the minimum salary,
• additional payment – up to 2% of your gross salary.

• one-time - PLN 250 welcome payment,
• annual payment - PLN 240 from the Labour Fund.

The funds you accumulate on your individual PPK account are your private property and are subject to inheritance.

All funds accumulated on PPK accounts are invested in the capital market through Target-Date Funds. These funds reduce the level of risk over time. Depending on your date of birth, you are automatically assigned to a given fund. Funds are invested in one fund throughout the entire payment period, unless you decide to change the fund.

You can have more than one PPK. This means that when you change employer, you can leave the funds accumulated in PPK on your current account - they will continue to be invested - and set up a new account with your new employer. You can also transfer funds from your old account to your new one to keep everything in one place.

You can withdraw your funds from PPK at any time, but if you do it before reaching the age of 60, then they will be reduced by:

• capital gains tax (if applicable),
• state’s contributions,
• 30% of the employer’s payments, which will go to your individual ZUS account.

Early withdrawal without consequences is possible in two cases: - serious illness of you, your spouse or child (then you will withdraw up to 25% of funds without the obligation to return), - covering your own contribution in the case of a mortgage for the construction of a house or purchase of an apartment (you will withdraw up to 100% of the funds, and if you return them within 15 years you will not pay capital gains tax). This applies to participants under 45 years of age.

To take advantage of all PPK benefits, it is best to withdraw funds after the age of 60. You can then withdraw all funds at once, but it is best to withdraw up to 25%, and break the rest into at least 120 instalments. In this variant, not only will the instalment payments increase your monthly pension, but you will also not pay the 19% capital gains tax.

Access to your funds is provided by the gstfi24.pl transaction system.

Depending on the data provided by the employer, the login (Participant’s Number) will be sent to your e-mail address or correspondence address, and the PIN will be sent to your mobile phone number or correspondence address in a separate package.

In this situation, contact the helpline and request that it is sent again. The welcome letter will be sent to the correspondence address or e-mail address provided, and the PIN to the correspondence address or telephone number registered in the system.

These are investment funds specifically designed for retirement solutions. Target Date here is your estimated retirement date. Usually, a young investor is more willing to accept investment risk, for example, related to investing in shares. However, with age, the appetite for risk decreases, and the closer we are to retirement, the more stable the investment portfolio should be. Then the investor invests funds in less risky assets, for example, state treasury bonds. This idea is automatically implemented by Target-Date Funds - they ensure greater security of entrusted funds by a gradual change in allocation.

All contributions from you, your employer and the state are invested. The work performed by the fund managers and the costs associated with operating the Target-Date Funds entitle financial institutions to charge a management fee. By law, however, such a fee may not exceed 0.5% of the value of assets under management, calculated on an annual basis.

There is no investment without risk. The funds invest money on the domestic and foreign capital markets, in various classes of assets, for example company shares or treasury bonds. The prices of these instruments are subject to constant changes and may fluctuate significantly, which translates into the value of the investment. Portfolio Managers exercise due diligence to generate profit for fund participants, but there is always a risk of losing part of the invested funds.

At Goldman Sachs TFI, funds are managed by an experienced team of experts, repeatedly awarded with industry awards for their performance. They make investment decisions on a daily basis, bearing in mind the statutory guidelines for Target-Date Funds.