What are your Private Pension Rights?
To become a pensioner under the Private Pension System, it is sufficient that you make contributions to the system for at least 10 years and you complete the age of 56.
You may change your pension plans maximum 4 (four) times a year. You can forward your requests for such changes to our company in writing, or via our call center or Vakıf Emeklilik website.. If approved, the related change is made in 10 working days after receipt of the plan change request by the company and the new pension contract is sent to the participant or, if any, sponsor organization in ten working days via electronic means or in printed form according to the preferences.
You can change the allocation ratios or totals of your savings and your contributions that you pay in your private pension account among various funds 6 (six) times a year.
You can change your pension plans 4 (four) times a year.
You can transfer your savings under a pension agreement to another pension company if the funds have remained in the same company for 2 (two) years starting from the effective date. The pension agreements for which the offer form was signed before the date of January 01, 2013 can be transferred if it has remained in the related company for 1 (one) year.
You may combine your pension accounts opened with the same or different companies when you earn your retirement entitlement.
You have the right of withdrawal in 60 (sixty) days after signing of the offer form or after approval of your offer in case of distant sales.
You can leave the system at any time desired before entitlement to retirement. In case you leave the system early, your savings will be subject to a withholding deduction, and, admission fees, if applicable
You may suspend your contributions that you pay at any time desired. In case that no payment is made to the related account in three months after the due date of payment in relation to any contribution not paid when due, an additional administrative expense fee may be imposed over the participant’s saving amount, providing not to exceed 2 TL per each full month suspended during the period of such suspension.
If payment is suspended for more than one year, the fixed expenses paid by the company to the Pension Monitoring Center in relation to private pension accounts may be deducted from the participant’s savings providing that it should be specified in the pension plan. In case of any suspension in payment of contributions, the savings will be continued to be invested in the pension investment funds selected by the participant; no state contribution will apply during the suspension period.
After becoming entitled to pension, you can withdraw your savings either in one lump-sum, or as a regular monthly pension payment, or a combination of both such as lump-sum payment in part and monthly pension payments in part.
3. Withholding Tax Deduction upon Leaving the System– only the Earnings to be taxed
Withholding tax is deducted at the rates stated below:
- 15% over the revenue amount contained by the state contribution earned and the payments made to those leaving the system upon payment of contributions for a period of less than 10 years,
- 10% over the revenue amount contained by the state contribution earned and the payments made to those leaving the system before entitlement to pension despite payment of contributions for a period of 10 years;
- 5% over the revenue amount contained by the state contribution and the payments made to those becoming entitled to pension (that have remained in the system for 10 years and completed the age of 56) and those leaving this system due to mandatory reasons such as death, disability or liquidation, etc.