Deputy Prime Minister for Economic and Financial Affairs, Ali Babacan, stating that the interest of the public is over the expectations in the first nine months of 2013, said, “The state contribution will be 1.95 billion TL with an increase of 56 percent.” A press conference was organized due to the 10th anniversary of Private Pension System (BES) with the participation of Ali Babacan, Deputy Prime Minister for Economic and Financial Affairs. İbrahim Halil Çanakçı, Undersecretary of Treasury, Ahmet Genç, Undersecretariat of Treasury General Manager of Insurance, Vahdettin Ertaş, Chairman of the Capital Markets Board, Recep Koçak, President of the Insurance Association of Turkey, Mete Uğurlu, Vice President of the Insurance Association of Turkey, pension companies and the representatives of the insurance sector have participated to the conference. In the meeting, significant information has been given to the participants about the state contribution that has been activated from the beginning of 2013 and its effects and the future of BES.
Pension fund returns under the spotlight
According to the data that has been given by Ali Babacan, there will be some innovations in the system in 2014. First, pension fund returns which are at issue among the participants will be controlled by Capital Markets Board of Turkey. Moreover, deduction practice will begin due to the performance of the pension funds.
In the meeting, Ali Babacan also answered the question about the duration of the state contribution. Babacan said, “As long as the participants and the system both content, the state contribution at a rate of 25 percent, will continue in the years ahead.”
Termination indemnity transfer differ on the basis of the workplaces
Ali Babacan also spoke about the termination indemnity fund plan and the transfer of that fund to the BES. Babacan said that Ministry of Labor has already started a project and it is in the process of discussing with the related parties.
