Poland Ministry of Finance proposes changes to Employee Capital Plans

The Polish Ministry of Finance has completed its mandatory four-year review of the Employee Capital Plans (PPK) system. While the Ministry intends to maintain the fundamental structure of the program, several key changes are being proposed to increase participation and efficiency.

Proposed adjustments include shortening the automatic enrollment cycle from four years to three years. Additionally, the Ministry aims to expand automatic enrollment to include workers aged 55 to 70, whereas currently, automatic enrollment only applies to those up to age 55. Individuals over 70 would be permitted to join the program upon request.

To improve investment returns, the Ministry suggests more flexible investment policies for date-defined funds. This includes adjusting investment limits to market conditions and potentially allowing investments in private market funds to better support the Polish capital market and diversify portfolios.