the impact of trade unions on occupational pension schemes in poland iv international scientific...

Post on 08-Jan-2018

215 Views

Category:

Documents

0 Downloads

Preview:

Click to see full reader

DESCRIPTION

3 OCCUPATIONAL PENSION SCHEME – MAIN CHARACTERSITICS  DC vehicle organized by an employer for its employees  Can be set up in one of forms provided by law (insurance, investment fund, employee pension fund, foreign investment)  Mandatory employer contribution (up to 7% of salary) and voluntary employee contribution  Mandatory registration of plan by pension fund supervisory office  Tax and social security incentives  Rules of scheme precisely defined by law provisions  Mandatory cooperation of employer with employee representatives

TRANSCRIPT

THE IMPACT OF TRADE UNIONS ON OCCUPATIONAL PENSION SCHEMES IN POLAND IV INTERNATIONAL SCIENTIFIC CONFERENCESOCIAL SECURITY SYSTEMS IN THE LIGHT OF DEMOGRAPHIC, ECONOMIC AND TECHNOLOGICAL CHALLENGES

legal advisor Marcin Wojewódka, Ph.D. Poznań, 25th September 2015

2

III PILLAR

OCCUPATIONAL PENSION SCHEMES

(EPS) INDIVIDUAL PRODUCTS(IKE, IKZE)

SOCIAL SECURITY

FUND

OPEN PENSION

FUND

MANDATORY PILLARS VOLUNTARY PILLARS

II PILLAR

PENSION SYSTEM IN POLAND 2015

I PILLAR

3

OCCUPATIONAL PENSION SCHEME – MAIN CHARACTERSITICS

DC vehicle organized by an employer for its employees Can be set up in one of forms provided by law (insurance, investment

fund, employee pension fund, foreign investment) Mandatory employer contribution (up to 7% of salary) and

voluntary employee contribution Mandatory registration of plan by pension fund supervisory office Tax and social security incentives Rules of scheme precisely defined by law provisions Mandatory cooperation of employer with employee

representatives

4

PARTIES OF OCCUPATIONAL PENSION SCHEME

Company pension

agreement Agreement with provider

5

POSSIBLE FORMS OF EMPLOYEE REPRESENTATION DUE TO THE

EXISTENCE OF TRADE UNIONS WITHIN THE EMPLOYER

EMPLOYEE REPRESENTATION

6

STATISTICS OF OCCUPATIONAL PENSION SCHEMES IN POLAND AS OF 31 December 2014

NUMBER OF SCHEMES As of 31st December 2014 there were only 1064 occupational

pension plans in Poland registered

20142000 2007

1064

year

Number of plans

Source: KNF raport „Pracownicze Programy Emerytalne 2014” Warszawa, 2015, page 10

7

STATISTICS OF OCCUPATIONAL PENSION SCHEMES IN POLAND AS OF 31 December 2014

ASSETS UNDER MANAGEMENT As of 31st December 2014 there were only 10,3 billion złoty as assets under all occupational pension plans (2,5 billion EURO)

10,3 bilion zloty

year

Millions of zloty

Source: KNF raport „Pracownicze Programy Emerytalne 2014” Warszawa, 2015, page 15

8

STATISTICS OF OCCUPATIONAL PENSION SCHEMES IN POLAND AS OF 31 December 2014

NUMBER OF PARTICIPANTS As of 31st December 2014 there were 381 000 participants in

all occupational pension plans in Poland registered what constitutes 2,38% of employees population in Poland

20142000 2007

381 000

year

Number of participants

Source: KNF raport „Pracownicze Programy Emerytalne 2014” Warszawa, 2015, page 10

9

LIFE CYCLE OF OCCUPATIONAL PENSION SCHEME IN POLAND

LIFE CYCLE OF PENSION SCHEME

10

INITIATION OF OCCUPATIONAL PENSION SCHEME

The employer is obliged to present the employee representation proposal of occupational pension scheme containing: • a draft of the company pension scheme agreement • the terms and conditions of a preliminary agreement with a

financial institution (provider)

11

INITIATION OF OCCUPATIONAL PENSION SCHEME

The employees representation can express their opinion not only by confirmation the draft of the company pension scheme agreement but also by negotiating general provisions of occupational pension scheme, the terms and conditions of company pension scheme agreement

If the employee representation refuses to conclude a company pension scheme agreement in general, then the employer’s efforts will be unavailing

12

MODIFICATIONS OF AN OCCUPATIONAL PENSION SCHEME

Modification of a company pension scheme agreement and/or an agreement with financial institution are prerequisites for changes in the official register. Every adjustment, change or annex to the agreements oblige the employer to negotiate new ideas and provisions with the employee representation. If the employees’ party is not willing to cooperate and settle the agreement for changes, the employer cannot act unilaterally

The above mentioned agreement comes into force solely after proper registration by the Polish Financial Supervision Authority

13

MODIFICATIONS OF AN OCCUPATIONAL PENSION SCHEME

Without approval of the employee representation, the employer (unilaterally) is entitled exclusively to: • suspend the allotting of basic contributions, • temporarily reduce the basic contribution (3-6 months)

If the employee’s party initiates changes (e.g. augmentation of the basic contribution), the employer is not obliged to negotiate and accept the offer

14

LIQUIDATION OF AN OCCUPATIONAL PENSION SCHEME

Liquidation of the occupational pension scheme may be inevitable to optimize costs and keep the company functioning.

Initiation of liquidation of the scheme is possible at any time. The employer is entitled to begin the process unilaterally, without the approval of employee representation.

There are to ways of liquidation: with employee representation consent without employee representation consent

15

LIQUIDATION OF AN OCCUPATIONAL PENSION SCHEME

In case of employee representation consent to liquidation of occupational pension scheme parties conclude relevant agreement and employer is entitled to close the scheme with 3 months period

In case of lack of employee representation consent to liquidation of occupational pension scheme employer has to start a liquidation procedure that implies Suspension of payment of basic premium for at least 3 month

period Termination with 12 month notice period

16

IMPACT OF EMPLOYEE REPRESENTATION ON PENSION SCHEME

LIFE CYCLE OF PENSION SCHEME

CRUCIAL CRUCIAL AUXILIARY

17

CONCLUSIONS

As the provisions of Polish law provide employee representation with strong power to legally influence on the existence and functioning of occupational pension scheme trade unions might be one of the drivers of further development of occupational schemes in Poland

Thank you for your attention

Ph.D. Marcin Wojewódkamarcin.wojewodka@wojewodka.pl

19

SETTING UP OCCUPATIONAL PENSION SCHEME IN 6 STEPS

SETTING UP STEPS

top related