Second pension with TES: 3 percent will be deducted from employees' salaries every month

The high inflation seen in Turkey is causing millions of retirees to struggle with the cost of living.

Despite all demands, the government, which has not made the expected increases in pension salaries, has begun searching for 'alternative paths' to fix the pension system, and details regarding the 'Complementary Pension System' (TES), which has also been debated in the public eye for some time, have now been clarified.

DEDUCTIONS WILL BE MADE FROM SALARIES EVERY MONTH

In the current regulation applied as 'Private Pension Insurance' (BES), many employees are included in the pension system under the name of 'automatic enrollment', and a 3 percent deduction is generally made from their salaries.

However, the fact that this applied system is not mandatory causes many employees struggling with the cost of living to leave the system in order to avoid deductions from their salaries.

According to the report by Sabah; although the TES, which will be put into effect as of 2025, shows similar characteristics to the Private Pension System in terms of structure, exits from this system will not be permitted.

With the TES, which will be mandatory for all employees and employers to participate in, it is planned to make a deduction of at least 3 percent from the salaries of workers, tradespeople, and civil servants.

WILL RETIREES CONTINUE TO RECEIVE THEIR MONTHLY PAYMENTS?

The system to be implemented will be operated completely separately from the current pension system, the Social Security Institution (SGK). Retirees will continue to receive their monthly payments from the SGK in the same way, and what they have accumulated in this system will offer them a complementary payment opportunity so that their salaries do not remain low.

With the automatic enrollment and BES system applied today, premiums are accumulated by deducting at least 3 percent from employees' wages every month. However, the system is not mandatory. Employees can leave the system if they wish. The new system will be mandatory, and retirement will be earned at the end of the period.

HOW MANY YEARS UNTIL RETIREMENT?

There will be a triple structure in the newly prepared TES system. According to the model, while the individual pays at least 3 percent of their gross salary, the employer will also contribute at the same rate. A state contribution of 30 percent of the paid premium amount will also be made.

In the system to be put into effect, retirement conditions have been determined as at least 10 years and 56 years of age. Someone who works in the system for 10 years will retire when they reach the age of 56. The system, which is included in the Medium-Term Program, is expected to officially begin as of 2025.