What Is Group Pension?

WHAT IS THE VESTING PERIOD?

"The Vesting-Entitlement" practice means that employees joining the system with corporate contributions may become entitled to all of the contributions paid by their employers only under a specified period of vesting."

The employer group pension contract may include a period of up to five years before the participant may become entitled to all of the contributions paid by the employer and the returns on them.

Sözleşme Yılı Sonu İtibarıyla Asgari Hak Kazanma Oranı (%)
		1.	2.	3.	4.	5.	6.	7.
	1*	100
	2	0	100
	3	0	0	100
	4	0	0	75	100
	5	0	0	60	80	100
	6	0	0	60	70	80	100
	7	0	0	50	60	70	80	100

* Hak kazanma süresi bir yıldan az olamaz.

Click for the Vesting-Entitlement Conditions.

Entitlement Conditions.

An employee in the system with corporate contributions will become entitled to all of the contributions paid by the sponsor organization in the name and for the account of the employee, and the returns on them, if:

• He/she is dismissed by the sponsor organization except for just reasons;
• He/she leaves his/her job for compulsory reasons such as disability
• The sponsor organization terminates the group pension contracts or declares bankruptcy or a composition with creditors; or
• He/she dies,
• Without waiting for the end of the entitlement period

Under the vesting-entitlement??? practice, employees joining the system with corporate contributions become entitled to all of the contributions paid by their employers according to their entitlement periods determined by the employer as of the contract starting date.

In Turkey, the vesting practice has become legal under the Insurance Act of 3 June 2007. Click to reach the relevant articles of legislation about the entitlement period practice, which is detailed by the Private Pension Regulation of 9 April 2008. (The link to the applicable regulation: http://www.egm.org.tr/?sid=21)

TRANSFER FROM FOUNDATIONS ASSOCIATIONS AND CREDIT UNIONS

Within five years from 3 June 2007, provided that a resolution is adopted by the competent bodies of associations, foundations, credit unions, and professional organizations with defined legal entity, that have made pension commitments to their members or employees, the pension savings and the amounts of commitment may be partly or completely transferred to the private pension system or annuity insurances without any deduction for the entrance fee or expenses. All procedures related to transfer, including sales of immovable property, are exempt from taxes, duties and charges.

WHY AVİVASA?

TAX ADVANTAGE

Corporate Tax

The contributions paid by employers to the private pension system in the name of employees may be recorded directly as an expense in the calculation of commercial profit.

The amount that may be deducted may not exceed 10 % of the gross salary received by the employee in the month of contribution payment, and the annual amount of the minimum gross wages in a given year..