New Developments on Turkish Private Pension System

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private pension artEmployees who withdrew from the pension system will be automatically re-enrolled in a pension plan in two years. Employers may contribute for their employees if they wish so.

As the effect date of Private Pension system (1st January 2017) is approaching, implementation details becomes clearer by issuance of regulations one after another.

As is known, “Private Pension System”, which is complementary to the mandatory state social security scheme in Turkey has been introduced by Law No. 6740 and will enter into force on 1st January 2017.

Turkish citizen employees who are under the 45 years of age and working against wage under a service contract (in the scope of Law No. 5510, articles 4/a, and 4/c) will be automatically enrolled in a pension plan arranged by employers. Participant employees may have the right of withdrawal from the system within two months.

Now with the new regulation that made some amendments on the regulations issued before, following points are rearranged.

Withdrawal from and Re-enrollment to System

  • After the auto enrolment, employee will be notified by post or e mail.
  • Employee may withdraw from the system within two months as of the date they informed about beingincluded in pension plan by notifying the employer or insurance company through post or e mail. Employee may withdraw even after two months.
  • Employee’s contribution will be refunded together with any investment gains within ten workdays after the claim of withdrawal is received.
  • Employees who get out of system will be re-enrolled in the system in two years. Undersecretariat of Treasury is authorized to shorten this period down to one year or to extend up to 3 years.

Contribution of Employee

  • Participants' minimum contribution amount will be 3% of their earning subject to premium.
  • It will be possible to contribute more than the amount determined in the pension contract.
  • Employee who left the job may continue to contribute in his pension plan.

Optional contribution of employer

Employers are not obliged to make any contribution for their employees; however they may contribute by their own choice.

Employees who have more than one employers

In case an employee is working in more than one workplace he will be registered in the system by each employer separately.

Observing the employee’s benefits

In the concluding of an agreement with pension companies, employer should observe the employee's benefits as regard to service quality and other factors they provide, and cannot derive benefits, including commission, from the insurance company.

Proposal Form and Pension Contract

Entrance fee, administrative expenses fee, fund expenditures fee related to pension plan will be included in the proposal form and pension contract.


Employee who doesn't use his right of withdrawal may require suspension of contribution payments up to 3 months. It will be possible for employee to claim re- suspension even before this period is expired and after this period.

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