As of March, net asset value of Polish Employee Capital Plans (PPK) decreased to 46.87 billion PLN, with 5.31 million active accounts.
PPK Asset Value and Participation Rates
As of the end of March, the net asset value of defined-date funds within the Employee Capital Plans (PPK) totaled 46.87 billion PLN, according to PFR Portal PPK. This represents a decrease of 1.55 billion PLN compared to the previous month.
A total of 5.31 million accounts were active in the program.
PPK Enrollment and Employer Involvement
As of March 31st, 342,460 entities allowed their employees to participate in the Employee Capital Plans, and 4.28 million individuals were utilizing the PPK savings option.
Participation by Sector and Nationality
Overall participation in PPK reached 59.8%. Participation rates are highest in organizations employing over 1,000 people. Participation is growing in both the public (34.31%) and private (68.62%) sectors.
Data from PFR indicates that 93.98% of PPK savers are Polish citizens (approximately 4.021 million). Among other nationalities, Ukrainians (162,860) are the most represented, followed by Belarusians (19,560), Indians (5,890), Romanians (3,770), Russians (3,150), Italians (2,820), and Turks (2,000).
Average Saver Age and Funding Sources
The average age of savers in the Employee Capital Plans is 40 years old.
52.41% of the net asset value of defined-date funds originates from PPK participants, 39.95% from employers, and 7.64% from state contributions.
PPK Management and Costs
Currently, 16 financial institutions manage the PPK, with an average management cost of 0.365% of the fund’s net asset value per year.
973 million PLN has been deposited into participant accounts through welcome contributions from the Labor Fund, and 2.29 billion PLN through annual subsidies.
As of December 2019, an individual saving in PPK has, on average, between 12,309 PLN and 17,953 PLN more in their account than they personally contributed, representing a profit of 137% to 203% for the participant.
Investment Flexibility and Program Overview
Employees can manage their savings within the PPK, including changing their assigned defined-date fund multiple times. Investors can choose riskier funds with higher potential returns or opt for funds based on debt instruments.
The Employee Capital Plans are a long-term, private savings program funded jointly by employees, employers, and the state. Participation is voluntary, allowing individuals to opt-out and re-enroll at any time. Funds accumulated in PPK are privately owned, inheritable, and invested in the capital market.
