Customized Interest-Free Private
Pension Plan

The minimum contribution amount to the Customized Interest-Free Private Pension Plan is 125 Turkish lira.

You can make monthly, quarterly, semi-annual or annual contribution payments using your credit card or by giving a direct debit mandate.

You benefit from numerous additional services right from your involvement in the Customized Interest-Free Private Pension Plan.

• Discounts at Contracted Health Institutions
• Contribution Assurance
• Assistance Services

An enrollment fee is charged if a pension contract is concluded for the first time with a company.

Contracts for which an enrollment fee is defined, all enrollment fees are deferred until the date of transfer to another company or withdrawal from the system. Contracts for which an enrollment fee is not defined or the contract has completed five (5) years after the effective date, enrollment fees cannot be collected.

Besides exercising the right to retirement, death, disability, or dissolution of a company, in the event of departure from the company before the completion of the five-year contract term, the fixed total corresponding to the remaining five (5) years and not collected by the company until departure will be deducted by the company from the private pension fund of the party as delayed enrollment fee. The monthly gross minimum wage amount in the first six (6) months of the year of departure is included in this calculation.

 In the Customized Interest-Free Private Pension Plan, administrative expenses fee is not deducted from the contributions.

 In the Customized Interest-Free Private Pension Plan, additional administrative expenses fee is not deducted from the contributions.

In the Customized Interest-Free Private Pension Plan, the sum of the enrollment fee and administrative expense fee deductions being subject to the annual upper limit, one-twelfth (1/12) of the annual upper limit of the sum of the enrollment fee and administrative expense fee is rounded and deducted from the accumulation in the account as the administrative expense fee, on the 15th day of each month (if that is not a workday then on the first following workday) in the first five (5) years of the contract, by selling shares from the pension funds.

*The Annual Upper Limit of the Sum of the Enrollment Fee and the Administrative Expense Fee represents 8.5 percent of the monthly gross minimum wage amount effective after January of the starting year of each contract, limited to five (5) years after the effective date of the contract.

 When calculating the refund rate, the start date of the contracts that exist in the system before January 1, 2013, is taken as January 1, 2013. For example, for a contract that started in 2010, 2013 is considered the effective date, and refunds are made accordingly.

Effective as of the sixth year of a private pension contract, total expense deductions made after the effective date until the date of termination of the contract are subject to the state contribution control. The total amount of deduction related to the state contribution is applied as of the sixth year of the contract, including the sixth year. State contribution control will start on January 1, 2021.

The upper limit on state contribution control rates varies according to the contract year.

Government contribution control does not apply to the following contracts:

• Contracts whose total accumulation as of the date of control exceeds 10 times the annual gross minimum wage; and
• Contracts including irregular payment.

 If the contribution due after January 1, 2016, is not deposited within three (3) months after the date of payment, it is considered irregular payment under the relevant contract. For contracts that fall within the scope of irregular payments, participants are informed within five (5) workdays after the start of the irregular payment period.

When all overdue contributions are paid under an irregularly paid contract, it is accepted that regular payments have begun for that contract.

No state contribution control exists over deductions for contracts with irregular payment status.