Supplementary pension deduction coming to all employees' salaries

With the new year, the state contribution rate in the Private Pension System (BES) had been reduced from 30 percent to 20 percent. Following this change, details for the long-discussed Supplementary Pension System (TES) have become clear, and the implementation is planned to begin this year.

MANDATORY PARTICIPATION FOR EVERY EMPLOYEE IN THE DRAFT SYSTEM

According to the prepared draft, participation in TES will be made mandatory, independent of the Social Security Institution (SGK). 3 percent of employees' monthly net salaries will be deducted, and employers will also contribute at the same rate. In the system, which has no upper or lower limits, those with an income of 28 thousand 75 TL will also be included in the application. The state will provide a 30 percent support to the total savings in addition to the employee and employer contributions.

LIMITED WITHDRAWAL RIGHTS

Unlike BES, TES will not allow savings to be withdrawn at any time. Only a certain portion of the savings can be accessed in extraordinary situations such as pregnancy, military service, or significant health problems.

Another feature of the system is that it is being evaluated to have a structure that will make long-term employees at a workplace more advantageous. However, the savings of those who change jobs will also be kept under guarantee. The money accumulated under TES will be paid as a supplementary pension in addition to the retirement pension received from the SGK.

NO ACCESS UNTIL AGE 65

Access to the accumulated money will be indexed to the SGK retirement age. The application will be implemented gradually between the ages of 58-65 for women and 60-65 for men.

BACKLASH AGAINST DEDUCTIONS

The 3 percent deduction to be made from employees' salaries with TES has sparked major reactions on social media. Employees, who are struggling to make ends meet, especially under high inflation conditions, are concerned that additional deductions will further strain their budgets.

News Source: 12punto