If you have contributions with more than one social security institution and are 6–12 months away from retirement, you can apply to the Social Security Institution (SGK) to combine these service periods. Do not assume this consolidation will be disadvantageous to you. On the contrary, it is usually in your favor. As many people know, retiring under SSK (employees’ insurance) is generally easier and more advantageous than retiring under BAĞKUR (self-employed insurance). If you are considering applying for service consolidation, read the information below to confirm whether it would benefit you.
To benefit from the service consolidation process, you must first submit a written application to the Social Security Institution. The required form is a “Application Form to Transfer BAĞKUR Service to SSK.” For this application you will need your previously assigned SSK and BAĞKUR service numbers. Obtain your service numbers from the relevant institutions and submit the written application to SGK.
The application to transfer BAĞKUR service to SSK has been possible since 2008, when SSK, BAĞKUR and the Pension Fund were merged. After that merge, many separate consolidation procedures were removed. However, if your insurance entry predates 2008, you must complete the service consolidation before you retire. Otherwise you may face problems or become disadvantaged.
Why Request to Transfer BAĞKUR to SSK?
One common question is why move BAĞKUR service to SSK. What makes SSK more advantageous? SSK generally applies higher pension calculation rates and requires less stringent conditions to qualify for retirement. For example, while BAĞKUR requires 7,200 days of premiums for women and 9,000 days for men, SSK requirements have historically ranged between approximately 5,000 and 5,975 days depending on the case. There are also differences in age requirements, and in many cases you can retire a few years earlier under SSK.
How Is the Service Consolidation Process Carried Out?
The consolidation process evaluates each year as 360 days and each month as 30 days. The consolidation system is not executed in cases such as disability, occupational disease, death, or work accidents. Consolidation is only carried out if the applicant is entitled to a monthly pension for those reasons. Another important point is that the consolidation procedure can be lengthy. It can take a long time to conclude, so if you intend to apply, start the process well in advance—ideally a year before your planned retirement. To speed up the process, it is advisable to pay any outstanding premium debts or step differences that arise from the consolidation. Because the procedure can be long, your retirement date may be delayed accordingly.
The institution you apply to will first obtain records of your service periods with other social security institutions and the necessary documentation it deems appropriate. However, if the person is already entitled to a pension, the consolidation request will not be processed and the application will be rejected. For applications dated before the 2008 merger, the institution bases its assessment on retroactive premiums or contributions paid and focuses on your last seven years of service. In short, if you qualify for retirement, you will gain the right to retire from the institution to which you paid premiums during the final three and a half months of your last seven years of service. If you meet a condition that prevents consolidation but still qualify for retirement, you will retire from the institution to which you were affiliated in the last month of your final service period.
Remember that all periods of debt repayment and service increments are very important in the consolidation process and are always taken into account.
You can obtain the “Application Form to Transfer BAĞKUR Service to SSK” from the link provided below.