Marion James, Istanbul
1 January 2017 sees not only the first day of a New Year, but also the start of Automatic Enrollment into the Private Pension System in Turkey.
But it would be practically impossible for insurers to enroll and set up every single employer in the country with a BES pension plan in time for the first deductions from payroll at the end of January.
So the government is authorizing a staggered start to the system: only employers with 1000 or more employees will have to join the system on 1 January 2017. Others will be added on over the next 2 years until all employers with 5 or more employees will be covered by the system on 1 January 2019.
The details of the roll-out are as follows:
1 January 2017 – private sector: 1000 employees or more
1 April 2017 – private sector: 250-999 employees & public sector employees (covered under Law No 5018)
1 July 2017 - private sector: 100-249 employees
1 January 2018 - private sector: 50-99 employees & local government employees and employees of state-owned enterprises
1 July 2018 - private sector: 10-49 employees
1 January 2019 - private sector: 5-9 employees