Employee's Capital Plans (PPK)
On 15 February, the government representatives presented the main assumptions behind the Employees’ Capital Plans (PPK), i.e. new element in the pension system. PPKs are set up to support domestic saving and to increase future pensions. PPKs will be introduced gradually – initially, only the biggest companies will be obliged to present PPKs to its employees; while smaller companies will join the scheme later. In the last phase, PPKs will also cover the public sector entities. According to the estimates of the Finance Ministry, PPK will be available to a total of 11.4mn employees. In our view, contributions to PPK will exceed PLN20bn in 2020, and will hamper the growth of gross disposable income and private consumption. At the same time they will trigger a higher saving rate and improvement of current account balance, and a higher demand for T-bonds.