Individual Pension System to save TL 90B

Published 03.08.2016 23:37

Deputy Prime Minister Nurettin Canikli said yesterday that the government expects savings to reach TL 90 billion ($30 billion) with the new arrangement in the Individual Pension System (BES) to increase savings.

With the new regulation approved in Parliament on Tuesday, wage workers under the age of 45 are to be automatically involved in a retirement plan through their employers.

The deputy prime minister stated yesterday that 6.7 million employees are being predicted to automatically become a part of BES, "Together with this arrangement during the following 10 years, we are expecting a creation of TL 90 billion in savings," he said. "This amount is a really serious amount and it will contribute to the increment of the saving ratios of Turkey" he added.

In accordance with the legal provisions, Turkish workers under the age of 45 will be included in a retirement plan through a retirement contract that will be prepared by their employers. However, a retirement plan offered by a company that the Undersecretariat of Treasury considers appropriate for retirement planning regarding the automatic involvement is the only way through which the salaried workers are going to be able to be included by their employers. As well as the principles of practice, the determination of businesses and employees who will be included in the retirement plan will be authorized by the Council of Ministers.

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