Personnel Capital Plans (PPK) were introduced in 2019 by the United Right government as a retirement savings scheme. Each month, a small portion of an employee’s salary, plus funds from the employer, is transferred to the individual PPK account. The state, in turn, provides program participants with a one-time welcome payment and annual subsidies. These resources are then safely invested. Funds must be invested in accordance with the interests of PPK participants and diversion of assets into risky investments is excluded. People under 55 are automatically enrolled in the scheme, unless they opt out of this option – they must sign and submit a special declaration to their employer. Employees between the ages of 55 and 70 can also participate in the program, but must submit an appropriate application at their workplace.
Not all political forces in Poland like the savings system described above. Unofficial information shows that the Civic Alliance is already preparing to bring revolutionary changes to the PKK. Among other things, there will be automatic liquidation upon subscription to the program, as well as a variable model for investing the accumulated funds. Instead of investing, for example, in stocks of large companies from the WIG 20 index, money should be invested in the most profitable entities at a given time. The reason for this decision is this Representatives of Donald Tusk’s group do not like the fact that the funds accumulated in PPK accounts are used to buy, among other things, shares of state-owned companies.
There has already been debate among experts and economists about possible changes to the system. Many of them warn that such amendments will eventually lead to the liquidation of the PKK. I remind you that the Tusk team has already destroyed a huge mechanism for saving for retirement, and this is of course open pension funds.. In 2011, Donald Tusk’s government decided to reduce the contribution to the Foreign Exchange Fund from 7.3 to 2.92 percent. More profound changes were implemented three years later, when all state treasury bonds worth more than PLN 153 billion were converted from OFE to ZUS. Tusk then argued that “the money in OFE does not belong to the Poles.” The Constitutional Court, headed by the professor, praised this scandalous decision. Andrzej Rzeblinski, who ruled that the money that Poles had saved over the years was not private property, but public property, and therefore the government could do with it what it wanted.
GPC asked the economic professor to comment on possible changes in PPK. Zbigniew Krysiak.
-These are destructive actions. First, these funds must be invested in low-risk entities, which is why this provision has been made regarding WIG20 companies. This is a major problem and such solutions are used in many places around the world. This is not money that employees have in excess and can invest in risky entities. Moreover, the state is responsible for the stability of this system and changing it now means exposing people to huge financial losses
– says Professor Kudzina. Krysiak.
Read more in today’s issue of “Gazeta Polska Dzień”
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Jan Przemyski
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