Ważne zmiany w funkcjonowaniu PPE oraz obowiązek dostosowania dotychczasowych PPE

In view of the entry into force of the Law of April 7, 2022 on amending the Law on Employee Pension Programs (EPPs) and the Law on Individual Pension Accounts and Individual Retirement Security Accounts and the far-reaching modifications affecting institutions managing occupational pension funds, employers, and scheme participants alike, the Polish Financial Supervision Authority, KNF, has published a statement in which it briefly summarizes the key modifications.
###### The key changes, particularly those affecting managing institutions, are briefly outlined below; for all of them, please refer to the original KNF statement.
(1) Simplification of EPP administration: The responsibility for preparing annual information on EPPs was shifted from the employer to the entities managing EPPs. Financial institutions managing the EPPs are now required to submit this information annually to the supervisory authority. Additionally, the obligation to update the data of financial institutions managing the EPP was introduced.
(2) Clarification of contribution rules: The regulations regarding the suspension and limitation of the basic contribution were clarified. A maximum period of six months was established for the unilateral temporary limitation of the basic contribution within a consecutive 12-month period.
(3) Streamlining the process for contribution suspension or limitation: Employers are no longer required to submit an application for registration of an agreement on the suspension or reduction of the basic contribution amount to the supervisory authority. Instead, a brief notification within specified time limits is sufficient.
(4) Removal of the restriction as regards additional contributions: Provisions prohibiting participants from paying additional contributions to the EPP were abolished.
(5) Introduction of additional contributions during non-working times: Participants can now make additional contributions from sources other than their remuneration from work during periods of absence from work, e.g. during parental leave, unpaid leave, or long-term sick leave.
(6) Establishment of a maximum transfer period: In the event of a change in the form of a EPP or the EPP manager, the existing manager is obligated to transfer the accumulated funds to the new manager within one month of receiving the final decision from the supervisory authority.
(7) Requirement for investment funds to provide aggregate yearly information: Investment funds managing EPPs are now required to provide information on the accumulated funds and transactions carried out on participants‘ accounts by the end of February each year as of December 31 of the previous year.
To conclude, the KNF notes that the still upcoming changes (those not in effect yet) will take some time to prepare which is why it strongly recommends all engaged parties to take adequate steps ahead of time to prepare for their new obligations. As far as new obligations relating to the contracts between employees and managing institutions are concerned, the KNF states that it has provided some contract templates on its website for use.