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Individual Pension System 2016 Progress Report

December 17, 2016: The “Regulation on Amendment of the Regulation on the Establishment and Operation
Principles of Pension Mutual Funds” introduced amendments concerning portfolio limitations and procedures
regarding the funds in which there are contribution shares of the employees that are included in the
automatic enrollment practices pursuant to Appendix-2 and Provisional Article 2 of the Law will be used as
well as the portfolio limitations regarding the funds offers in the private pension system.

December 17, 2016: Pursuant to the “Regulation on Amendment of the Regulation of State Contributions to
the Private Pension System,” implementation and calculation principles regarding State contribution, which
will be provided to the employees who are enrolled in the pension plan automatically by their employers,
were added to the current state contribution regulation.

December 17, 2016: The “Regulation on Amendment of the Regulation of the Private Pension System”
established the implementation principles and procedures regarding automatic enrollment, and amended
the process for pension contract types and parties, pension notification, proposal, retraction, fund
distribution change, transfer, withdrawal, and retirement.

December 28, 2016: “Press Release on the Use of Withdrawal Rights in the Automatic Enrollment System”
stipulates that employees have the withdrawal right and that employers cannot use this right on behalf of
employees nor can they encourage them to use this right.

December 30, 2016: The “Circular on the Private Pension System (Circular No. 2016/39)” amended Law No.
4632 on Private Pension Savings and Investment System, the Regulation on the Private Pension System,
the Regulation on State Contributions to the Private Pension System, and the procedures and principles
established by the office of the Deputy Prime Minister and put forth by Industry Announcement No.
2016/30 dated December 15, 2016. The Circular repealed “Circular on the Pension Plan No. 2015/47 dated
November 25, 2015,” “Circular on State Contribution Processes to the Private Pension System No. 2016/20
dated May 25, 2016,” and “Circular on the Procedures and Principles for the Information, Documents and
Forms Submitted by the Pension Companies No. 2015/46 dated November 20, 2015.”

Also, press releases dated December 21 and 28, 2016, provided explanations on the obligations of
employers that are required to enroll employees in the system under automatic enrollment practice, on the
dates to enroll the employees in the system, and on the use of withdrawal right.

Amendments in the Legal Framework 102