Page 29 - Turkinsurance Digital Magazine

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State subsidy and return rates in BES make participants happy

Insurance Association of Turkey, (TSB) issued a statement em-
phasizing the advantages of state subsidy application in the Indi- Participants who retired in 2019
vidual Pension System (BES). The statement which reminds that earned 900 million TL in total
state subsidy is 25% for all contribution payments (regular or Benli said that 18 thousand 262
bulk) made in BES, states that the system is therefore much more participants gained the right to
profitable. retire from the system during the
first 9 months of 2020, adding
Atilla Benli, President of the Insurance Association of Turkey, that 24 thousand 131 people re-
underlined that Individual Pension System is very important for tired and left the system by with-
individual savings. drawing their entire savings in
2019. “Participants who retired
“BES carries a great importance in making people gain the habit from the system in 2019 had
of saving. Therefore, we have conducted many successful projects paid 1.6 billion TL in contribu-
to encourage people to participate in the system. One of the most tions, and withdrew 2.5 billion
important one of those incentives is undoubtedly the state subsidy TL while retiring. This shows
application which was launched in 2013. The state makes an addi- how profitable the system is.”
tional contribution for every participant at the rate of 25% of the
amount of the contribution they pay. I believe that this application According to the statistics announced by Pension Monitoring
has a great role in bringing the system to its current size. And I Center on 13 November 2020, total number of participants in BES
would like to remind our citizens to save more, and tell them to and Auto-Enrollment (OKS) has nearly reached 12.6 million, and
remain in the system to benefit from the maximum amount of state total fund size has reached 165.7 billion TL. Total size of state
subsidy payments.” subsidy contributions has reached 21.2 billion TL.
We have participants who continue to stay in BES It is possible to benefit from higher state subsidy
despite becoming eligible to retire through additional payments

Atilla Benli reminded that participants needed to stay in the sys- State subsidy is the amount paid by the state at the rate of 25%
tem for at least 10 years and be older than 56 to become eligible of the amount of the contribution you pay. The upper limit of the
to retire from BES, and stated that nearly 132 thousand people state subsidy payments is 25% of the annual gross minimum wage,
had so far retired from the system which left 17 years behind. He which equals to 8 thousand 829 TL as of 2020. Participants wish-
underlined that BES was a great success story. “When we look ing to benefit from maximum state subsidy payment can learn their
closely, we see that some participants continue to stay in the sys- remaining limits from their pension companies and make addition-
tem despite becoming eligible to retire from the system. Accord- al contribution payments in the last month of the year.
ing to the statistics by the Pension Monitoring Center, nearly 107
thousand participants have preferred to stay in the system despite Participants who remain in the system for at least 3 years can
becoming eligible to retire. This is a significant proof of the trust in withdraw 15% of their state subsidy funds, those who remain for
the system. 51 thousand participants between 56-59, 48 thousand 6 years can withdraw 35%, those who remain for at least 10 years
participants between 60-69, and 8 thousand participants over 70 can withdraw 60%, and participants who turn 57 and are entitled
are continuing to make savings in BES despite being able to retire to retire from the system become entitled to withdraw 100% of
at the moment,” he stated. their state subsidy funds.

Türkiye Hayat Emeklilik launches Advantageous Additional Contribution Campaign

Türkiye Hayat Emeklilik, which As a result of the lottery, 1 participant will win Honda Ac-
was founded by the consolida- tiva S Scooter, 1 participant will win a 15.000 TL gift card
tion of state-owned pension and from Media Markt, 10 participants will win IPhone 11 Pro,
life insurance companies, has 10 par-ticipants will win 2.000 TL gift card from Boyner,
launched a campaign of addi- and 50 participants will win Airpods 2nd Generation Wireless
tional contribution pay-ments. Earbuds. Participants who have more than one contract under
The campaign is valid between their own name will earn one right in the lottery for each of
15 October and 31 December the 2.000 TL additional contributions to be deposited in those
2020. With this campaign, par- contracts.
ticipants earn one right to par-
ticipate in the lottery for each Participants can get detailed information about the campaign
2.000 TL worth of additional contributions they will deposit in by calling the Contact Center at 0850 202 20 20, or by visit-
their pension contracts. ing the website www.turkiyehayatemeklilik.com.tr.