Frequently Asked Questions

Frequently Asked Questions

You can start now to make investments for the retirement in your dreams with the state contribution advantage. To get detailed information on the Personal Pension System, complete the form and let us contact you!

What is state contribution?

State Contribution is the support payment made by the state to all personal pension participants in order to encourage the personal pension plans.

Who may benefit from state contribution?

Regardless of being a tax payer or not, any Turkish citizen that have turned 18 and paying contribution to an individual or group personal pension contract may benefit from the state contribution.

I am paying contribution for may spouse and children. Can my spouse and children receive state contribution as well?

To benefit from state contribution, the person making contribution payment on behalf and account of the participant does not necessarily have to be the participant himself/herself. For the contributions paid to Individual or group personal pension contract, state contribution is calculated regardless of the paying party and paid to the pension account of the participant by the state. In this case your spouse and children as well can benefit from state contribution individually.

What should I do to benefit from state contribution?

To benefit from state contribution, there aren't any special procedure to be carried out by the participant after the contribution payment is made. This contribution is made by the state directly to the personal pension system account of the participants. The state contribution amount is calculated based on the paid contribution and any declaration or statement by the participant is not required.

You can learn the latest status of your savings from our Private Internet Branch , from our Customer Satisfaction Center on 444 11 11 or via the "Personal Pension" link available on the homepage of the Internet site of Settlement And Custody Bank.

What is the rate of state contribution?

You shall get state contribution at the rate of 30% of the contribution amount you have paid since 2013. Thanks to state contribution you can earn more by paying higher contribution. For instance, when you pay 500 TL, the state shall make a contribution payment of 150 TL.

Table showing monthly and annual state contribution corresponding to different monthly contributions

Contribution Amount
State Contribution
State Contribution
500 TL 150 TL 1.800 TL
1.000 TL 300 TL 3.600 TL
2.000 TL 600 TL 7.200 TL
20.002,50 TL 6.000,75 TL 72.009,00 TL
What are the limits of state contribution?

The total annual state contribution amount for all of the Personal Pension contracts you have may not exceed 30% of the annual gross minimum wage. In this case the state contribution shall be calculated the weight of the contribution rates paid per contract and total state contribution shall be divided between the Personal Pension contracts.

In which account and how shall the state contribution be utilized?

State Contribution, shall be kept in the subaccount under the personal pension account of the participant at Settlement And Custody Bank and shall be utilized in the investment funds to be specified by the Undersecretariat of Treasury.

What is the entitlement periods for state contribution?

In case of payments made with credit card, in order to be included to the state contribution calculation the contribution must be transferred in cash to the corporate accounts.

In the entitlement for state contribution, a graded structure shall be applied as of January 1st, 2013. As of January 1st, 2013;

  • Those that remain at least 3 years in the system shall be entitled to 15%,
  • Those that remain at least 6 years 35%,
  • Those that remain at least 10 years 60%,
  • and those that turn 56 or exiting from the system due to death/invalidity after having remained 10 years in the system to the entire of the state contributions and the earnings from such.
Did state contribution provide different advantages to those included to the system?

An additional advantage is established that is to be taken into account in the period for the entitlement to the state contribution of the participants who were enrolled to the system prior to January 1st, 2013, i.e. prior to the effective date of state contribution system and having a valid contract as of January 1st, 2016.

To be applied for once to the total period of time you were in the system as of January 1st, 2013;

  • For the participants that are in the system for a period longer than 3 years but less than or equal to 6 years, 1 year,
  • For the participants that are in the system for a period longer than 6 years but less than or equal to 10 years, 2 years,
  • For the participants that are in the system for more than 10 years, 3 years shall be added.
Are there exceptions for state contribution?

One exception for benefiting from the state contribution is stipulated by the law.

According to this, if you terminate your pension contract by taking out your savings between the dates of June 29, 2012 and June 29, 2014 whilst you were in PPP as of May 29, 2012, you may not benefit from state contribution until December 31, 2014.

Which contracts the state contribution shall be applied to?

The pension contracts can be executed as individual or group pension contract. Group pension contracts are drawn in the form of employer group contracts or group associated individual contracts.

Participants paying contribution to an individual or group personal pension contract shall be able to benefit from the state contribution.

Employer Group Pension Contract makes use of corporate tax advantage.

Can I benefit from the tax advantage in the personal pension system as well as from the state contribution?

No, instead of deducting the paid contribution from the taxable income, state contribution is introduced. State Contribution is not applicable to Employer Group Pension Contracts; in case of Employer Group Pension Contracts, one benefits from corporate tax advantage.

After being entitled to pension from "Personal Pension System" I want to continue the contract without withdrawing my savings. Can I benefit from the sate contribution?

If you continue your pension contract after having been entitled to pension, you may continue to receive also state contribution when you carry on making contribution payments. If you leave the system after the entitlement for the pension, you shall also be entitled to any saving available in your state contribution account.