Included in the MTP: Supplementary Pension System is coming

Vice President Cevdet Yılmaz announced the new Medium-Term Program (MTP), which covers a three-year economic period, stating that a Supplementary Pension System (TES) will be established, transforming the Automatic Enrollment System into a second-pillar pension system.

Among the structural reforms in the MTP, the statement “A supplementary pension system will be established in which the Automatic Enrollment System (OKS) will transform into a second-pillar pension system with the contribution of employers” was included.

BES AND OKS WILL CHANGE

It was stated that developmental regulations will be implemented for the Private Pension System (BES) and the Automatic Enrollment System (OKS) included in the program. 

According to the information in the program, a supplementary pension system will be established in which the OKS will transform into a second-pillar pension system with the contribution of employers.

Additionally, standard pension investment funds within the BES will be redesigned to generate more added value for participants' savings.

OKS participants will be granted access to pension funds available in the BES, regulations will be made to simplify deductions, and in this context, the attractiveness of the system will be increased to ensure growth in fund amounts and the number of participants.

WHAT IS TES?

TES is envisioned as a system where cash contributions made by the employee or the state to the employee's individual account will be directed toward investment in pension investment funds.

According to the system, the selection and allocation of these funds will be made by the employee. This will serve as a type of second-pillar pension system.

Regulations regarding supplementary pensions had previously been included in programs but were not implemented.

News Source: 12punto