The Pan-European Individual Pension Product (PEPP) is the one that implements the EU regulation 2019/1238 of June 20, 2019. It will allow you to save on funds in other countries.
Consultations on the bill in the Committee for European Affairs ended in November. Now the other committees of the Council of Ministers will deal with the bill, and after it has been adopted, it will be voted on in the Sejm. According to “Rzeczpospolita”, the act will enter into force on March 23, 2022.
Retirement from EU funds. What is it about?
PEPP will allow Poles to save for pillar III retirement abroad. It will be available to persons aged 15 and over on terms similar to IKE. “The income from investing the funds paid into the PEPP will be exempt from taxation. Provided, however, that the payment of these funds will take place only after the saver reaches 60 years or 55 years, but after acquiring pension rights and making contributions to the PEPP sub-account in at least any five years calendar or making more than half of the value of the payments not later than five years before the date of submitting the application for their payment “,” Rzeczpospolita “explains.
In the case of saving in a foreign financial institution, the Polish government is to charge 10 percent. flat-rate income tax. It will not matter to what account such benefit will be paid from a foreign account or sub-account.
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Lifetime annuity
In the opinion of the National Bank of Poland to the draft act on PEPP, the idea of introducing pensions in the form of inflation-indexed annuities.
“In the opinion of the NBP, a significant gap in the Polish voluntary pension savings system is the inability to receive a retirement pension in the form of an annuity, taking into account the indexation with the inflation rate” – wrote the NBP in its opinion on the PEPP Act, signed with the name of the President of the National Bank of Poland, Adam Glapiñski .
Source: Gazeta
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