In the Premium Private Pension Fund, the minimum contribution amount is 125 Turkish lira, and the mandatory starting fund is 100,000 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 will benefit from numerous additional advantages right after your enrollment in the Premium Private Pension Plan.

  • Discounts at Contracted Health Institutions
  • Contribution Assurance
  • Assistance Services
The enrollment fee for the contract, considering the monthly gross minimum wage applicable at the date of signing the pension contract proposal form, is defined as follows:
(a) 75 percent of the monthly gross minimum wage for those who withdraw within three (3) years of the effective date of the contract
(b) For contracts completing three (3) years after the effective date, 50 percent of the monthly gross minimum wage for those who withdraw before five (5) years.

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.
 In the Premium Private Pension Plan, administrative expenses fee is not deducted from the contributions.
 In the Premium Private Pension Plan, additional administrative expenses fee is not deducted from the contributions.
In the Premium Private Pension Fund, administrative expense fee is not deducted from the accumulation.
Starting from the sixth year of the contract, the total fund expense fee deduction is refunded to the relevant pension fund at certain rates.

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Contract Year

Refund Rate

 

Starting from the 6th year

2.5%

 

7 – 14 years

Increasing by 2.5% per annum

 

15th year and beyond

25%

 
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.

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Contract Year

State Contribution Control Rate

 

6

60%

 

7

70%

 

8

80%

 

9

90%

 

10+

100%

 

 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.