New Era in the Private Pension System!
We have entered into a new period where the savings are encouraged against the increasing trend of consuming. From now on, 25% of State Contribution will be made to your savings.
What are the changes in the new period?
The followings are the changes in the system which provide more benefit to the participants and encourage the savings:
Every participant in the Private Pension System will benefit from the State Contribution and 25% state contribution shall be added to each contribution, deposited to the Private Pension Account. The upper limit of the State Contribution shall be 25% of the Annual Gross Minimum Wage. Only Turkish Republic citizens will benefit from State Contribution.
Tax to be imposed on the return only...
The withholding shall be deducted from the return only not from the total saving if and when participants withdraw from the Private Pension System. 5% withholding tax shall be applicable on the return if and when the participant deposit contribution for 10 years at least and retire at 56 years old. 15% withholding tax shall be applicable on the return if and when participants withdraw from the system by depositing contribution less than 10 years and %10 withholding tax on the return if and when the participants withdraw from the system by depositing contribution for 10 years and retire before 56 years old.
Corporate Pension Plans to be encouraged more...
The incentive limit, defined for the group life and/or health insurance premium paid by the employer indirectly by adding to the payroll of the employee and Private Pension Contribution Amount, which is deposited in the name of the employee and registered as expenditure directly, shall be increased to 15% from 10% of the gross income of the employee.
The Private Pension Contributions and Insurance Premium Incentive Limit to be separated...
The upper limit of the tax advantage was 10% of the monthly gross salary and amount of monthly gross minimum wage from which the participants benefit the total life and health insurance premiums and contribution deposited to the Private Pension System until today. Upper limit of State Contribution deposited for the Private Pension Contributions shall not be changed and equivalent to the gross minimum wage, regardless of the total insurance premiums paid by the participants with the new practice.
The Persons who have left the Private Pension and enter the system again not to benefit from the State Contribution until the end of 2014.
The participants, who have been included in the Private Pension System as of the date of 5/29/2012 and terminated the pension contract by obtaining the savings within two years as of the effective date of the law, shall not benefit from the State Contribution to the date of 12/31/2014 if and when they are included in the Private Pension System again.