Occupational Pension Schemes

Voluntary participation

• All employed persons, if employer choses to provide such plans; the provision of plans is sometimes based on collective agreement.
• A natural person running a business (entrepreneur) is entitled to participate in the plan, if he or she provides the PPE for his or her employees.

General finances

• Fully funded schemes financed by contribution payments and capital revenues.

Contribution rates

• Contributions paid by employer (minimum amount: 3.5% of monthly gross earnings, maximum amount: 7%).
• Employee can contribute voluntarily (capped by maximum amount, 4.5 times the national average wage).

State support

• Monthly contribution payments of the employer are tax-exempted.
• The incomes from the investment activities of the funds which are then placed in the individual accounts are not taxed.

• Investment funds companies chosen by the employer.
• The ‘Polish Financial Supervision Authority’ (Komisja Nadzoru Finansowego) regulates licenses, oversees and sanctions the pension schemes.

• Employee is entitled to occupational pension benefits at a minimum age of 60 years.

Pension payments

• Defined contribution, primarily based on the amount of contributory earnings, length of contribution period and capital revenues.
• Monthly annuity or one-time lump sum payment.

Taxation and social security contributions

• Payments are not subject to income tax if paid at age 60 or after (other payment arrangements are subject to capital gains tax).
• Pension payments are not subject to social security contributions.