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Mar 2024

Turkey: National pension plan extends minimum subscription period to 3 years

Source: Middle East Insurance Review | Feb 2019

The revised Private Pension Insurance Scheme (BES), requiring wage earners to stay in the plan for at least three years, has started last month to cover employees in workplaces which have a staff of five to nine people.
 
Previously, workers who did not want to be a part of the system were able to exit during a two-month period and their savings were returned.
 
BES, which was launched in 2017, envisages the automatic enrolment of all Turkish wage earners younger than 45 within the system by their employers. However, after the system went into effect, more than half of 12m workers included in the system exited the plan willingly, prompting the government to revise the BES last year. The regulation is now restructured to be more sustainable, reported Hurriyet Daily News.
 
Employees who previously opted to exit from the auto-enrolment system will be automatically re-enrolled into it.
 
Auto-enrolment applies to all employees under the age of 45. It initially applied only to firms with more than 50 employees, but from July 2018, companies with 10-49 employees were included. The monthly pension premiums is deducted from the monthly wages of employees and transmitted to insurers. M 
 
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