Individual Pension

About the course of individual pension

Individual pension system has been set up as a complement of existing public social security system. Its primary objective is to ensure that the regular savings individuals make throughout their professional life are channeled to investment and, with such accumulation, the welfare level they have in the period of saving is maintained also in the period of pension.

The system is based on voluntary participation.

When individuals are entitled to pension, the system pays such savings as

  • Pension,
  • Lump sum,
  • Both pension and lump sum.

The assets in the fund portfolio are kept by ISE Settlement and Custody Bank Inc. (TAKASBANK) separately from company assets. The number of shares owned by participants is followed up by ISE Settlement and Custody Bank Inc. (TAKASBANK) on the basis of participants and as accessible by participants.

For the purpose of ensuring system transparency and reliability, detailed supervision and monitoring mechanisms have been built in order to supervise pension companies. The system is under the supervision, monitoring and control of different institutions and organizations such as:

  • Undersecretariat of Treasury,
  • Capital Markets Board,
  • Pension Monitoring Center,
  • ISE Settlement and Custody Bank Inc. (TAKASBANK), and
  • Independent Audit Companies.

The activities of funds and portfolio managers are audited at least once a year by the Capital Markets Board. Moreover, fund accounts and transactions are subject to independent external audit quarterly.

Please click on fund names to get detailed information about the interest-free plans of Kuveyt Türk.

Growth Participation Flexible Pension Investment Fund

Growth Group Participation Flexible Pension Investment Fund

About Participant Rights

BES is based on voluntary participation. Desirous participants are included in the system, to which they shall pay a certain amount of contribution, by signing the pension contract to be issued according to their needs.

Participants are entitled to pension when they turn 56 provided that they pay the monthly contribution they want for at least 10 years. These criteria are for leaving the system as a pensioner and obtaining maximum benefit in taxational terms.

It is possible to leave the system at will by paying withholding tax.

Participant Rights

  • Participant is entitled to pension after turning 56 provided that he/she regularly pays minimum contribution for at least 10 years in the system.

  • Participant has the right to change the plans he/she chooses in the same company for four times and the distribution in fund rates for six times in a year.

  • Participant may switch between same company plans.
  • Participant may transfer his/her savings to another company, if he/she wants (after minimum 1 year following the date of his/her last transfer).

  • He/she may intermit paying contribution.

  • Participant has the right to leave the system before retirement. In case the death of the participant, his/her savings are paid to his/her beneficiary or, if no beneficiary is indicated, to his/her legal heir.

  • Participant may follow up his/her savings transparently.
  • Participant may combine his/her accounts in different contracts in a single contract, if he/she wants.
  • After being entitled to pension, participant may receive his/her savings as:
  • Lump sum,
  • Monthly, quarterly, semi-annually or yearly pension.
  • Participant who is entitled to pension may request his/her savings in his/her individual pension account to be paid at once in part or in whole. Besides, he/she may request to be put on pension for a certain period of time or for life within the scope of the contract to be signed by asking his/her savings to be transferred to annuity in part or in whole. Furthermore, he/she may prefer to receive his/her savings in parts from the company according to the reimbursement schedule made.

  • Participant may take his/her savings and leave the system at any time during the time of the pension contract. A withholding is deducted at the rate of 3, 75% over the savings of the participants who leave the system as pensioners, at the rate of 15% over the savings of the participants who leave the system without paying contribution for 10 years, and at the rate of 10% over the savings of the participants who pay contribution for 10 years but leave the system without being entitled to pension.

  • For detailed information about the Individual Payment System, please click. (KAPBS)

  • For “Frequently Asked Questions” about the Individual Payment System, please click.

About Tax Advantage

Tax Exemption of the Contributions Paid by Participantsi

The contributions paid by participants may be deducted from income tax basis on condition of not exceeding 10% of payment for paid employees, 10% of declared income for self-employed persons, and annual amount of subsistence wage.

The contributions paid by employers may be deducted from corporate tax basis by directly writing off within the limits given above..

For calculating your tax advantage, please click.

Pension Investment Funds Subject to Corporate Tax

Pension Investment Funds are not subject to corporate tax.