It might be hard to imagine what you will be doing when you stop working, especially if that is still a long way off
A pension plan allows you to build up savings for your future. It will give you an income when you retire. Both you and your employer can pay money into an account and the money is invested to help it grow. You can take your savings from age 60 (55 in some cases) – either as one full payment, or in regular payments – without paying tax.
By saving in a pension plan, you have the security of knowing that you will not need to survive on the Social Insurance Institution (ZUS) pension alone. It also gives you the security of knowing that your loved ones will receive the value of your account in the event of your death. From July 2019, companies in Poland with 250 or more workers will have to enrol their employees into a pension plan.
From July 2019, employers can choose whether to enrol their employees into an Employee Capital Plan (PPK) or an Employee Pension Plan (PPE). In a PPK, employees have to pay 2% of their salary, and employers have to pay 1.5% of the employees’ salary into their accounts.
You do not have to pay to be a member of the PPE. IMI will pay 3.5% of your salary into your personal account. But, if you want your account to build up more quickly, you can also pay contributions.
You pay tax on the basic contribution that IMI pays because it is treated as extra income, but otherwise the only cost to you is any contribution you choose to make.
The Employee Pension Plan is not just about saving for retirement. You also have the added bonus of knowing that your family will have some security if the worst should happen to you. Let us know who you would like to receive your benefits on your Declaration of Participation when you join. You can also update this if things change.