30October2020

2021 Mandatory Private Pension Obligation

As known, with the "Regulation on the Amendment of the Regulation on the Procedures and Principles Regarding the Automatic Enrollment of Employees in the Pension Plan Through Their Employers", which entered into force on 7.12.2018, the points that employers should pay attention to in mandatory individual pension processes were explained.

According to these points, employers may have some obligations regarding automatic private pension plans as of 2021. (There is no need for any additional processing for employers who were previously included in the scope of Mandatory Private Pension Plan - automatic enrollment. These employers will continue their current Mandatory Private Pension Plans.)

You can find below the related explanations of these points below:

Determination of the Number of Employees

Employers should pay attention to the determination of the number of employees for 2020. In determining the number of employees, the latest Withholding and Premium Service Declaration (November 2020 Declaration) or workplace declaration should be checked. If this number is 5 or more, all employees should be included in the automatic enrollment pension system by 2021. (There is no need for any additional processing for employers who were previously included in the scope of Mandatory Private Pension Plan - automatic enrollment. These employers will continue their current Mandatory Private Pension Plans.)

Choosing the Pension Company

Once you have determined the date you should be enrolled to the system, you need to choose your pension company.

Communication with the Pension Company

After the pension company is determined, the company officials should be contacted by the employer.

Signing a Contract with the Pension Company

A contract must be signed with the pension company to start the mandatory pension plan system.

You can reach the relevant regulation via that link (in Turkish).

Category Social Security Law and Legislation

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