Private Pension Contract (PPS)

A Comfortable Retirement, Trust, Transparency, Statement's 30% Participation Advantage, A Voice in Decisions Affecting Your Income, Right to Suspend Payments, Services from Licensed Intermediaries, Professional Fund Management, Employer Group Pension Agreements, Transfer of Your Savings to Another Company, and Right to Merge Accounts

The Private Pension System enables individuals to direct their savings to long-term investments and to obtain the right to a second retirement with an additional income to increase their welfare level during the retirement period.

One can be entitled to retirement, provided that he/she has been in the system for at least 10 years from the date of entry in the Private Pension System and has completed the age of 56. With the new regulations introduced as of 22 January 2022, anyone who is a citizen of the Republic of Turkey (employed or unemployed) and who has reached the age of 18 can enter the system and benefit from the 30% state contribution. With the amendment made on 7 June 2013, with effect from 1 January 2013, the way for blue card holders to benefit from the state contribution advantage was paved. The private pension state contribution amount that a participant can receive in a calendar year cannot exceed 30% of the gross minimum wage amount for the relevant year. Since the gross minimum wage amount for 2024 is 240.030,00 TL in total, if you pay a contribution of this amount, the State will make a maximum contribution of 72.009,00 TL, which corresponds to 25%, on your behalf. The upper limit for the amount of state contribution is applied on a participant basis. The state contribution amount calculated for the total contribution amount paid by the participant who paid contributions to more than one contract in the same period is distributed to the contracts according to the weight of the contribution paid per contract in the relevant month. The amount of contribution paid within a calendar year to be taken into account in the calculation of state contribution is equal to the annual gross minimum wage. Anyone who pays contributions, whether they are taxpayers or not, can benefit from the state contribution.

An entitlement period is added to the pension contracts of the participants who entered the Private Pension System before 01.01.2013 and are in effect as of 01.01.2016, depending on the period they have spent in the system in order to benefit from the state contribution. As of the 6th year of the contract, the company returns 2.5% of the deductions made as Fund Total Expenses. The rates between the 7th and 14th years are applied every year by increasing the refund rate valid in the previous year by 2.5 points. A fixed 25% refund is applied after the 15th year. Refunds are not applied for the portion below 1.1% of the current savings as of the relevant date. While determining the return rate, all periods spent in the contract as of 01.01.2013 are taken into account.

You can change your pension plans a maximum of 4 (four) times a year. You can change the distribution ratios or amounts of your savings and paid contributions in your private pension account between funds 12 (twelve) times in a year.

You can transfer your savings under the pension contract, which remains with the same company for 2 (two) years from the effective date, to another pension company. It is sufficient to stay in the relevant company for 1 (one) year in order to transfer the contracts with the offer form signed before 01.01.2013. You can combine your retirement accounts opened in the same or different companies if you gain the right to retirement. You have the right to withdraw within 60 (sixty) days after you sign the offer form or the approval of your offer in distance sales.

You can leave the system at any time before you qualify for retirement. If you leave the system early, withholding tax and entry fee deductions, if any, are made from your savings. You can stop paying your contribution at any time. If no payment is made to the relevant account within three months following the payment date of the unpaid contribution, it is considered that the payment is suspended in the relevant contract. If the payment is suspended, the suspension deduction is applied during the suspension period, depending on the nature of the Pension Plan that the participant is included in.

In case of suspension of payments for more than one year, fixed expenses paid by the company to the Pension Monitoring Center in relation to the private pension account, provided that it is specified in the pension plan, can be deducted from the participant's savings. Even if the contribution payment is suspended, the savings continue to be utilized in the pension investment funds selected by the participant, and they cannot benefit from the state contribution during the suspension period. After qualifying for retirement, you can receive your savings either as a lump sum, as a monthly salary, or some as a lump sum and some as a salary.

It is managed by a portfolio management company determined by Türkiye Hayat ve Emeklilik AŞ as required by the Private Pension legislation.

By contacting the pension company with which you have your current pension contract, you can request an account statement and transfer request form, and send us the documents you have received in this context.