Private Pension State Contribution
Effective January 1, 2013, a totally new era has started for the Private Pension System. Now, for every contribution you make, the state will add a 25 percent state contribution to it, unmatched by no other investment instrument. For every 100 Turkish lira, the state will deposit 25 Turkish lira in your sub-account.
The monthly upper limit is set to 25 percent of the Gross Minimum Wage. Any Turkish citizen over 18 in the system will receive 25 percent state contribution.
You can transfer your savings under a pension agreement to another company if the funds have been with the same company for two (2) years starting on the effective date. For pension agreements with an offer form signed before January 1, 2013, it is necessary to have the funds remain with the same company for one (1) year as a requirement for transfer.
The participants in the system that are over 18 years of age, citizens of the Republic of Turkey, blue card holders, and those for whom the contributions are not paid by their employers may benefit from the state contribution for which the monthly upper limit will be 25% of the Gross Minimum Wage.
|Montly Contribution Amount||State Contribution||Annual State Contribution|
|150 TL||37,50 TL||450 TL|
|300 TL||75 TL||900 TL|
|600 TL||150 TL||1800 TL|
|900 TL||225 TL||2700 TL|
|* 1.102,50 TL TL||257,63 TL||3.307,50 TL|
Periods of entitlement for the contribution made by the state:
- Ineligible in the event of leaving the system within the first three years.
- Entitled to 15 percent in the event of leaving the system after three years,
- Entitled to 35 percent in the event of leaving the system after six years,
- Entitled to 60 percent in the event of leaving the system after 10 years,
- Full entitlement in the event of becoming eligible for retirement.
Additional entitlement periods for the state contribution, based on the duration of stay in the system
For dates before January 1, 2013,
- One (1) more year of entitlement period is added for participants that stay for more than 3 years but less than 6 years in the system,
- Two (2) more years of entitlement period are added for participants that stay for more than 6 years but less than 10 years in the system,
- Three (2) more years of entitlement period are added for participants that stay for more than 10 years in the system,
The participants that were in the Private Pension System and terminated their pension contracts upon withdrawing their savings in two years after the effective date of the law, i.e. May 29, 2012, are periodically prohibited from benefiting from the State Contribution until December 31, 2014 in case of re-entering the Private Pension System.