Can you inherit funds from ZUS, OFE, and PPK? Check who has the right to them and in what situations.

Many people are unaware of one important thing: the funds accumulated for retirement often do not disappear after death. Yes, you read that right. If someone close to you had an account in OFE, was enrolled in PPK, or simply paid contributions to ZUS for years, in many cases part of that money may be inherited.

But there is no one simple scheme here. Each of these systems – ZUS, OFE, and PPK – works differently. That’s why in this article, I will explain step by step what happens to the money after the death of a participant in the pension system, who can inherit it, and what needs to be done to actually receive it.

Differences between ZUS, OFE, and PPK – how does it actually work?

Before we get into the details, it’s worth calmly understanding that these three systems – ZUS, OFE, and PPK – operate on completely different principles, especially when it comes to inheritance.

In the case of ZUS, the situation is somewhat complicated. The entire ZUS system is based on the principle of the so-called intergenerational contract – meaning our contributions go to current payouts for present retirees. This means that most contributions cannot be inherited. But there is an exception – the ZUS sub-account, which was created after pension reforms. If someone had such a sub-account (and most people born after 1968 do), the funds there are inheritable.

On the other hand, OFE, or Open Pension Fund, operates like an investment account. All the money accumulated in OFE is private and subject to inheritance. Moreover, if the deceased was in a marital relationship, half of those funds goes to the spouse (provided there is community property), and the rest goes to persons designated by the deceased or to statutory heirs if no one was designated.

As for PPK, or Employee Capital Plans – this is a system that also allows for the inheritance of the entire accumulated amount. Here too, half of the funds go to the spouse, and the rest to persons designated by the program participant or – in their absence – to the heirs.

In short:

– In ZUS, we inherit only the sub-account (if someone had it).

– In OFE, we inherit everything, but half goes to the spouse.

– In PPK, we inherit everything, and there is also a 50/50 division between the spouse and the rest of the designated persons.

Each of these systems requires a separate approach and separate procedures, but it’s worth knowing that inheritance is indeed possible – and it doesn’t have to be as complicated as it might seem.

What happens to contributions in ZUS after death?

Let’s start with the most popular system, which is ZUS. Most people thought that all contributions there simply disappear. That’s true… but only partially.

ZUS operates like a generational system – meaning today’s workers finance today’s retirees. This is not a savings account. But there is an exception: it concerns the so-called sub-account in ZUS, which works a little differently.

What can be inherited?

If the deceased had a sub-account – and almost everyone born after 1968 has one – then those funds are inheritable. Not the entirety of ZUS, but just that sub-account.

Who can inherit?

– The person designated during their lifetime as the so-called beneficiary,

– or – if no one was designated – statutory heirs, such as children, spouse, parents, etc.

How does it look in practice?

After the death of a loved one, you need to report to ZUS and submit the appropriate application. If you are an heir, you also need to have a court decision on the acquisition of inheritance or a notarial deed confirming inheritance.

Inheritance of funds from OFE

Here the situation is much simpler and more “savings-oriented.” OFE is simply an investment account, so all the money that has been accumulated there can be inherited.

What exactly do we inherit?

The entirety of the funds that were in the OFE account – regardless of whether someone had 2 thousand or 200 thousand zlotys.

Who can inherit?

– Half automatically goes to the spouse if community property was in effect,

– the rest goes to the person or persons designated as beneficiaries,

– and if no one was designated – inheritance follows the civil code, meaning through the heirs.

What does the procedure look like?

First, you need to report the death of the OFE member to the appropriate fund (e.g., Aviva, Allianz, PKO BP, Nationale-Nederlanden). Then you provide the death certificate and documents confirming inheritance. The funds can be paid out in cash or transferred to another retirement account – e.g., a sub-account in ZUS or an IKE account.

Inheritance of funds from PPK

If the deceased participated in PPK (i.e., in the so-called Employee Capital Plans), there’s good news: the funds accumulated there are also subject to inheritance.

What can be inherited?

The entirety of the funds accumulated in the account – both those contributed by the employee and the employer and state contributions.

Who has the right to the money?

– Half goes to the spouse,

– the remaining part goes to persons designated as beneficiaries,

– and if no one was designated – the funds enter the estate.

What needs to be done?

You report to the financial institution that managed the PPK (e.g., TFI PZU, NN, PKO BP), inform them of the participant’s death, fill out the application, and provide the necessary documents. If you are the designated person, you do not have to go through the inheritance proceedings – that’s a big convenience.

Practical tips

It’s worth designating a beneficiary in advance – this will speed up and simplify the entire process. You don’t need to go to a notary – it’s enough to report it to your institution (ZUS, fund, TFI).

Update your data! – if you get divorced, someone in the family dies, or you change your mind – it’s worth reporting it.

Funds from OFE and PPK are exempt from inheritance and donation tax, which means that the money goes to you in full.

Summary

The death of a loved one is always a difficult moment, but it’s worth knowing that part of the money they accumulated over the years does not disappear. Inheritance from PPK, OFE, and ZUS (more specifically: from the sub-account in ZUS) is possible – you just need to know the rules.

The most important things are:

✔ to know which system the deceased was in,

✔ to check if they designated a beneficiary,

✔ and then to take the appropriate steps – preferably as soon as possible, while we have access to the documents.

This could be even tens of thousands of zlotys, which can really help the family – so it’s not worth giving up just because “ZUS takes everything.”

BONUS

And what about IKE and IKZE? They are also subject to inheritance!

If you have IKE (Individual Retirement Account) or IKZE (Individual Retirement Security Account) – I have good news for you: the funds accumulated in these accounts are also subject to inheritance.

These are entirely voluntary solutions, but fully private – and that’s why inheritance is much simpler here than in the case of ZUS. What’s worth knowing?

Who can be designated?

You have the right to independently designate beneficiaries – they do not have to be family members. You can designate a friend, partner, anyone – and in the event of your death, the funds will be paid out without the need for inheritance proceedings.

What if you don’t designate anyone?

Then the funds from IKE or IKZE enter the estate, meaning they are inherited under general rules – through the spouse, children, parents, etc., according to the civil code.

Do you have to pay tax?

Here’s an important piece of information:

– In the case of IKE, the funds are paid out without the Belka tax (19%) – regardless of who inherits them.

– In the case of IKZE, inheritance is subject to a flat income tax of 10% – but that’s still less than the inheritance and donation tax or the Belka tax.

What needs to be done?

In the event of the death of the owner of the IKE/IKZE account, you should report to the financial institution managing the account, submit the appropriate documents (death certificate, possibly a decision on the acquisition of inheritance), and then submit an application for payout. The entire process usually goes quite smoothly, as long as the documents are complete.

External sources:

1. https://www.zus.pl/

2. https://www.mojeppk.pl/dla-pracownika/dziedziczenie.html

3. https://www.knf.gov.pl/dla_konsumenta/ubezpieczenia_i_emerytury/ofe

4. https://www.gov.pl/web/finanse/ppk-dziedziczenie