Pensions in Turkey
Pensions in Turkey can be public or private. Article 60 of the 1982 Turkish constitution (similar to Article 48 of the 1961 constitution) states that "Everyone has the right to social security and the State shall take the necessary measures and establish the organization for the provision of social security."[1]
History
Until May 2006, there were three separate social security institutions: SSK, for private and public sector workers; Emekli Sandiği (ES), for civil servants; and Bağ-Kur, for self-employed workers and farmers. In 2006 these were all merged into one institution, the
Current system
The state pension system is administered by the
There is also a separate pension fund, OYAK, for members of the Turkish Armed Forces.
Individual Pension System (BES), is actively promoted by the government. Until 2013, tax refunds were issued up to 30% of the contributions. After 2013, government started to contribute with %25 of paid contributions. These government contributions can be earned under special terms (after some years and age).[4] In 2017, government introduced Automatic BES, which certain employees joined the system automatically with 3% of their salaries. They had the option to leave the system.[5] In September 2020, President Erdoğan announced BES funds can be used for credit purposes.[6]
References
- ^ "Emeklilik Gözetim Merkezi". www.egm.org.tr. Retrieved 13 September 2020.
- ^ "Emeklilik Gözetim Merkezi". www.egm.org.tr. Retrieved 13 September 2020.
- ^ Welle (www.dw.com), Deutsche. "Analiz: Erdoğan'ın BES açıklaması ne anlama geliyor? | DW | 08.09.2020". DW.COM (in Turkish). Retrieved 13 September 2020.