Is Participation in BES Mandatory?
The Individual Pension System is a premium system developed for employees. Similar to private BES, automatic enrollment, which offers an additional income opportunity for the retirement period by deducting from employees' salaries, has been in effect since 2017. You can visit online internet pages for information on who the system is mandatory for.
What is the Individual Pension System?
The Individual Pension System is a mandatory application for those born in 1972 and above. The system, which covers all employees under the age of 45 working in a private or public institution, automatically includes them in the individual pension system. The continuity of the system is carried out through the employer. The employer is obliged to pay the BES premium to the relevant insurance company on the first working day following the salary payment. The state provides the system's functionality by making a one-time payment of 1000 lira. After that, a 3 percent deduction is made from the employee's salary by the employer, and this deduction is paid to the insurance company. Thus, money accumulates in the employee's insurance account under the name of individual pension.
How Much Gain is Provided by Automatic Enrollment?
The amount of gain increases with the deduction rate. The mandatory payment rate is 3 percent. However, the employee has the right to increase the deduction rate by negotiating with their employer. Employees who make premium payments for the periods specified in the system will also receive state contributions to their salaries. This will ensure that the income obtained with BES increases slightly. You can access detailed information about the system details and entitlement amount from online internet pages.
