Depending on such criteria as the number of people who will benefit from private pensions, the number of employees and participants, and the total fund size, a Private Pension Scheme provides special advantages such as low management turnover and sign-up fee deductions. This pension plan, offered to organizations wishing to pay a contribution for their employees, has more attractive conditions than those offered for individual participation.
Employer Group Pension Insurances provide employees with additional income during the retirement period, while increases the motivation and commitment to the organization of the employees whose employers pay on their behalf. In addition, the employer may deduct the amounts paid on behalf of the employees from the corporate tax base up to 15 per cent of the monthly gross salary of each employee by writing down the direct annual expense of the annual gross minimum wage.
The advantages of Employer Group Pension Insurances are as follows:
- It helps to retain qualified employees
- It raises motivation of employees and increases their commitment to the company
- It reduces the future anxiety of employees
- It can be used by the company as a rewarding tool
Progress Payment Application
Employees who are included in the Private Pension Scheme as an institution are said to be subject to progress payment when they are entitled to the right to earn their contributions after they have worked for that company for a certain period of time on the contributions paid by their employers on their behalf. This period shall not exceed 7 years from the date of entry of the participant into the group pension contract.
Group Affiliated Private Pension Schemes
Institutions can pay contributions for their employees or members, or they can provide group pension schemes by bringing together employees / members of the organization without the contribution of the institution. Group Affiliated Private Pension Schemes may have more attractive conditions than the plans offered to individual participants with the advantages provided by the deductions in management expenditures and sign-up fees. In this way, institutions will ensure that their employees and members have a more advantageous pension plan for their future. Group Affiliated Private Pension Schemes is recommended to firms with a certain number of employees.
Employees can pay contributions by their own means of payment, or they can mediate payment by deducting from the employees' salaries. You can also include the Group Flexible Pension Mutual Fund, which is more advantageous in terms of fund management in both Employer Contribution and Group Affiliated Private Pension Scheme Agreements.
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