Critical warning for retirees: Your pensions could be cut off completely

Many retirees do not want to disconnect from professional life after retirement and are exploring opportunities to work in public institutions. However, there are significant restrictions for those who wish to start working in the public sector.

According to Türkiye Gazetesi columnist and Social Security Institution (SGK) expert İsa Karakaş, regulations in effect since 2005 make working in the public sector economically difficult, especially for low-income retirees, while exceptions are provided for certain high-level positions.

The pension of a retiree who returns to the public sector is cut off entirely if they are employed by general budget institutions, municipalities, state-owned enterprises, or companies in which the state holds more than a 50 percent stake.

At this point, a retiree who starts a job in the public sector faces the risk of losing their pension. The system does not allow the retiree the option of receiving both a salary and a pension by paying a social security support premium (SGDP), as is the case in the private sector.

While all insurance and health premiums are deducted from the salary at the institution where they work, the individual is treated as if they are “not a retiree” within the system.

However, there are certain positions where the pension is not cut off. Retirees working in positions such as the Presidency, membership in the Grand National Assembly of Turkey (TBMM), mayorship, municipal council membership, teaching in educational institutions on a per-lesson basis, academic positions at foundation universities, board memberships, and neighborhood headmanship (muhtarlık) can receive public compensation without losing their pensions.

In particular, retirees who serve as neighborhood headmen (muhtar) benefit from both their pension and the headman's allowance, and are also exempt from SGDP deductions.

In its current form, the system strictly applies the “either work or receive your pension” rule for retirees who are on low pensions and struggling to make ends meet. For example, while the state pension of a retiree who starts working as a park guard is immediately cut off, two different income streams can be kept open simultaneously for retirees in political or high-level administrative positions.

Even retirees employed in public companies are considered public officials under the law and are not excluded from the rule.

However, individuals in politically powerful positions or those involved in legislative activities are considered outside the scope and hold a privileged status.