Individual Pension System Law offered to Parliament

Published 02.08.2016 23:42

Wage workers under the age of 45 to be automatically involved in a retirement plan through their employers

The draft law regarding amendments on the Individual Pension Savings and Investment System Law has been offered to Parliament. Accordingly, Turkish workers under the age of 45 will be included in a retirement plan through a retirement contract that their employers will prepare in accordance with legal provisions. Employers will be able to include salaried workers only through a retirement plan offered by a company that the Undersecretariat of Treasury considers appropriate for retirement planning regarding the automatic involvement.

The Council of Ministers will be authorized to determine businesses and employees who will be included in the retirement plan as well as the principles of practice. The contribution of the employee to the premium will be based on 3 percent of their income. This amount will be transferred to the company by employers on the day that follows the salary payment day, at the latest. If employers fail to transfer the contribution margin to the company on time, they will be responsible for the monetary loss in workers' savings. Workers will be able to request a cut of the higher contribution margin than that is determined in the retirement contract on automatic involvement.

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