What is the minimum contribution amount for the 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.
The Customized Interest-Free Private Pension Plan offers the following benefits:
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
How much is the enrollment fee and the administrative expense fee deduction?
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.
Administrative Expense Fee Deduction Over Contributions
In the Customized Interest-Free Private Pension Plan, administrative expenses fee is not deducted from the contributions.
Additional Administrative Expense Fee Deduction
In the Customized Interest-Free Private Pension Plan, additional administrative expenses fee is not deducted from the contributions.
Administrative Expense Fee Deduction Over the Accumulation
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.
What is the total fund expense fee deduction refund? How is it determined?
Starting from the sixth year of the contract, the total fund expense fee deduction is refunded to the relevant pension fund at certain rates.
The required contract years and corresponding refund rates of this program, which will begin on January 1, 2021, are as follows: