IPS | AES | |
---|---|---|
Participation in the system | Voluntary | Compulsory |
Condition for retirement | Remain in the system for 10 years as of the system entry date and turn 56 | Remain in the system for 10 years as of the system entry date and turn 56 |
Target audience |
Everyone (1) |
Obligatory for employees under 45 years of age, Voluntary for employees over 45 years of age |
Participation in the system by foreign nationals |
Allowed (2) |
Not Allowed |
The party determining the pension company |
|
Employer (certificate delivery to employees) |
Documents to sign/approve during contract preparation phase |
|
Automatic participation pension contract by employer/employer representative |
Right of withdrawal in the grace period |
Yes (Right of withdrawal within two months after pension contract proposal form signing/approval) |
Yes (Right of withdrawal within two months after pension company informs employee about participation in the pension plan) |
Company's obligation to bear the possible loss in the accumulations during the right of withdrawal period |
No |
Yes |
State contribution amount |
30 percent of the paid contributions (3) |
|
The contribution amount to be paid in order to benefit from the maximum State contribution annually |
240,030 TL for 2024 (4) |
240,030 TL for 2024 (4) |
State contribution payment method |
Cash payment into account |
Showing in personal account records for each commitment until vesting, cash payment of the vested amount into account based on the vesting rate |
Conditions for vesting for state contribution |
Of the amounts in the state contribution account;
|
Of the amounts in the state contribution account;
|
Investment of State Contributions |
Investment in the state contribution funds determined by the Ministry |
Providing returns, based on the CPI change (5), from the state contribution amounts committed at the start of each calendar year; investing in the state contribution funds the amounts paid in cash according to the following years’ vesting rates. |
Contribution amount |
Any amount over the minimum amount stated in the plan |
3% of the premium-based earnings(6) |
Additional contribution payment possible anytime |
Yes |
No |
Contribution that can be made by the employer on behalf of the employee |
Contribution paid through noncontributory group contracts |
No |
Suspension of contribution payments possible anytime |
Yes |
Yes |
Possible deductions by the pension company: Entrance fee |
Possible |
No |
Possible deductions by the pension company: Administrative expenses fee |
Possible |
No |
Possible deductions by the pension company: Fund expense fee total |
Yes (minimum 1.09%; maximum 2.28% of the annual fund asset value) |
Yes (maximum 1.09% of of the fund asset value) |
The party that decides the pension plan change |
|
Employer (7) |
The party that uses the right for pension company change |
|
Employer |
The party that decides the funds to invest the accumulations in |
Participant |
Employee (8) |
The annual rights for fund distribution change (9) |
12 times a year |
12 times a year
|
Income tax (withholding tax) rate to apply on earnings in case of leaving the system |
|
|
Payment options available to retired individuals |
|
|
Right to leave the system |
Yes (Anytime) |
Yes (Anytime) |
Partial Payment (10) |
Maximum 50% of the savings in case of marriage, house purchase and natural disaster (except for employer group pension contracts). |
No |
Timing of changing the pension company |
The pension company may be changed anytime after two years of the initial contract effective date or one year after the effective date of the contract that was drawn up through transfer. |
The pension company may be changed by the employer anytime after two years of the initial contract effective date or one year after the effective date of the contract that was drawn up through transfer. |
Fund types offered |
|
|