Expert answers the question concerning millions: Will working retirees pay additional premiums?

As a new regulation regarding the pension system is expected to come to the agenda in the new legislative year of the Grand National Assembly of Turkey (TBMM) starting on October 1, one of the formulas discussed by the public to ensure balance in the social security system and ensure the financial sustainability of the system has been the collection of additional general health insurance premiums from working retirees.

Evaluating the prominent possibility of an additional premium, social security expert Dilek Ete stated that the additional social security premium could be collected at a rate of around 1 percent, adding, "0.5 percentage points could be deducted from the employer and 0.5 percentage points from the employee."

Reminding that the short-term insurance branch premiums previously collected by the Social Security Institution (SGK) were increased from 2 percent to 2.5 percent, Ete stated that a similar rate change could come into effect starting from the beginning of the year.

Another agenda item in social security is the expected surge in retirement applications, as those retiring this year will receive higher monthly pensions compared to those who apply for retirement in 2025 due to the pension calculation method.

It has been stated that various options are on the table to ensure that those who will retire next year do not suffer a loss of rights. According to a report in Ekonomim, it is on the agenda to take the highest coefficient ratio between the year in which retirement eligibility is earned and the year of retirement as the basis for pension calculations.

According to this formula, if an employee who becomes eligible for retirement in 2024 submits their retirement application in 2025, the calculation will use whichever monthly coefficient is higher between the two years.

There is an emphasis on ensuring this calculation applies not only to those retiring in 2025, but also to those who will retire in 2026 and 2027. Another possibility is transitioning to a fixed figure for the pension accrual rate until a steady decline in inflation is achieved.

If no changes are made to the retirement formula, a loss in pension payments will become an issue.

Speaking to Milliyet, Social Security Expert Ete pointed out that, according to the current system, the difference between 2024 and 2025 pensions will be around 30-35 percent, stating that while this gap might close by 2030 for those who paid premiums based on high salaries, it will be impossible to compensate for this difference for low-income earners.