Difficult PPK choice
Entities employing over 250 people are required to conclude a contract for the management of PPK by 25 October 2019 at the latest. Therefore, time is running out and the choice is not easy - 20 financial institutions already offer PPK management services.
On the official website dedicated for PPK you can find a table of average fees for managing the funds of financial institutions offering PPK, which facilitates employers seeking an optimal plan. However, a comprehensive verification of the offers proposed by individual societies requires a more in-depth analysis, taking into account the content of other documents available on the ‘Moje PPK’ portal (such as statutes or KID / KIID cards).
It is also worth noting that the first funds are already publishing the results of their listings (available on the website analizy.pl). This is important because "efficiency in fund management", which should be understood primarily to achieve measurable financial results, is one from the statutory criteria which should be followed by the employing entity when choosing a financial institution that will manage the funds collected by its employees.
For now, it is too early for the PPK financial results to be the optimal measure of effectiveness. In fact, it will only be possible after several months (or several years) to actually compare individual funds in terms of their financial viability.
So, what should guide employers who are already facing the choice of a financial institution today? We would like to remind you that in addition to the efficiency criterion, the employing entity should also make this selection based on an assessment of the conditions proposed by financial institutions for managing funds accumulated in PPK, and their experience in managing investment funds or pension funds.
However, the statutory catalog of selection criteria is exemplary - the employer may therefore also take into account other aspects regarding the management of PPK. However, it is important to consider the best-understood interest of employees when making a choice. It is certainly important in this context to take into account the voice of trade union representatives or the employees’ representatives (if there are no trade unions present in the entity) - the employing entity should decide which financial institution will manage its employees' funds in consultation with these employees’ representatives.
While the largest employers are on the last straight, another group of enterprises is preparing for the implementation of PPK. Those who employed at least 50 people as at 30 June 2019 are required to apply the provisions of the PPK Act from 1 January 2020. This means that by 24 April 2020 at the latest, they will be required to sign a PPK management contract, and at the latest until 11 May 2020 – a contract for running PPK.
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