Serious penalties for violating the PPK Act
The PPK bill foresees criminal, misdemeanor and financial liability for violating its provisions. In the case where the employing entity or a person bound to act on its behalf fails to fulfill the obligation to conclude a PPK management agreement during the timeframe foreseen by the law, it are subject to a fine amounting to 1.5% of the entity’s payroll in the financial year preceding the illegal act. The same fine is carried by attempts to convince an employed person or a PPK enrollee not to save in the PPK. The fine may amount to as much as 1,000,000 zloty.
In addition, the bill foresees liability for:
- failure to conclude a PPK administering agreement on behalf and for the employed person within the timeframe provided for by the law,
- failure to make PPK contributions by the deadlines,
- failure to provide data required by the law, or providing false data, providing false clarifications on these issues or refusing to provide them,
- failure to maintain documentation in connection with the calculation of PPK contributions.
Such liability is borne by the individual responsible for the given violation. In this context, the key issue is to correctly allocate PPK-related responsibilities within the company. By appropriately regulating the allocation of tasks and responsibilities with respect to administering the PPK, and by implementing integrated compliance regulations, it will be possible to transfer or limit the management’s liability in this respect.