|August 10, 2016
||Revision of the principles on automatic entry of employees to a pension plan by employers pursuant to the Law on Amendment of the Individual Pension Savings and Investment System went into effect on January 1, 2017 and was published in Official Gazette No. 6740. Pursuant to the Law that entered into effect on January 1, 2017, articles (additional article 2 and supplementary article 2) regarding entering employees into a pension plan automatically were added in the Law No. 4632.
|November 26, 2016
||Circular on Automatic Participation to the Individual Pension System No. 2016/26 of the Prime Ministry published. The Circular informs the public about the "Automatic Participation System Introductory Guide for Employers" prepared by the Undersecretariat of Treasury as a guideline during the process.
|December 15, 2016
||The Undersecretariat of Treasury published the Industry Announcement on Automatic Enrollment Implementation Principles to the Private Pension System No. 2016/30. The announcement describes the pension investment funds to offer the employees as part of the automatic participation and the investment instruments, as well as the funds' offer periods and conditions, maximum fund management fee deduction rates, and the additional deduction rates depending on the fund performance; and states that the state contribution in AES will be calculated as a commitment.
|December 17, 2016
||The Regulation on Amendment of the Regulation of the Private Pension System, published in the Official Gazette 29921, amended the IPS Legislation and set forth the main framework of the automatic participation process with the addition of part six. The Regulation set forth the following;
- The matters that employers must take into consideration when choosing the pension company,
- The principles on deduction of the contributions from employees' salaries, and transfer and monitoring of the deducted amounts to pension companies,
- Main essential elements of a pension contract,
- The processes for workplace change, contribution payment suspension or withdrawal, and leaving the system by the employees,
- Main information, documents and forms to provide the employee.
The Regulation on Amendment of the Regulation of State Contributions in the Individual Pension System, published in the Official Gazette bearing the same date, governs the procedures and principles about the state contribution to provide the employees that will be automatically entered in a pension plan through employers, and the main principles on the additional state contribution that will be calculated if the employee does not exercise the right of withdrawal.
|December 30, 2016
||The Circular on the Private Pension System No. 2016/39 provided explanation on both the AES and IPS. The Circular provided definitions on the following;
- Responsibilities of the employer and the pension company during the process of deduction of the contribution from the employee's salary and transfer to the pension company; and the matters on tracking contribution collections, and the contribution returns to be made to the employee,
- The content of the pension plan and the pension mutual funds to be offered within the plan,
- The matters on re-entry of the employees who have withdrawn from the plan,
- The matters on the process of calculating the state contribution as a commitment, and the valuation method and frequency these amounts are recorded in the state contribution account; vesting periods for the calculated state contribution and the state contribution rates to be vested for at the end of these periods; the investment process of the paid state contributions; and unduly earned and paid amounts,
- The attributes of the contracts and forms to be signed by the parties; and the information and content of the documents and forms to be presented to the employees, and the procedures and principles of the notifications to be made with these,
- The procedures for transfers due to change of workplace and in the transactions regarding termination of employment relation.