Many people in our country work under various types of social insurance. One of these is Bağ-Kur. Those insured under Bağ-Kur pay contributions, and through these payments they receive health services and secure their retirement. Another important matter within Bağ-Kur is Bağ-Kur debt. In this article we examine Bağ-Kur debt restructuring.
Before discussing Bağ-Kur debt restructuring, let’s explain what Bağ-Kur insurance is and who falls under its coverage.
What is Bağ-Kur?
Bağ-Kur covers individuals who do not work for the state or private employers, such as tradespeople, artisans, and village heads. The scope can extend further. People insured under Bağ-Kur gain retirement rights by paying contributions. These contributions are calculated based on the minimum wage. Besides retirement, Bağ-Kur provides coverage for death, old age, disability and health insurance. In the event of a person’s death, beneficiaries may also receive a lump sum payment.
Another significant issue for Bağ-Kur contributors is debt. Recently, an increase in contribution debts among Bağ-Kur insured persons has been observed. High interest rates cause these debts to grow over time, making repayment more difficult. In response, recent regulations have allowed the state to offer Bağ-Kur insured citizens the option to restructure their Bağ-Kur debts.
What Is Bağ-Kur Debt Restructuring?
Bağ-Kur debt restructuring concerns many Bağ-Kur insured individuals. Through restructuring, those with outstanding Bağ-Kur contribution debts can renegotiate their obligations, making repayment more manageable by arranging an easier payment plan.
Bağ-Kur restructuring measures came into force after publication in the Official Gazette and were implemented thereafter. Citizens were given specific application periods to apply within those deadlines. Applications for Bağ-Kur debt restructuring are submitted to Social Security Centers or the provincial Social Security directorates in the applicant’s location.
Who Can Restructure Their Bağ-Kur Debt?
The following persons can request recalculation and restructuring of their Bağ-Kur debts:
- Tradespeople
- Artisans
- Those with contribution debts of 12 months or longer
- Agricultural workers and farmers insured under Bağ-Kur
- Persons who previously restructured their contribution debts or who applied for cancellation of a prior restructuring
How Will Debt Be Calculated in Restructuring?
Alongside the application process, how debts are recalculated and restructured is important. Under the restructuring, the principal debt is not erased. Instead, accumulated late-payment surcharges and delay interest are waived. In their place, a newly determined, restructured amount is set to be paid. This reduces the total amount the Bağ-Kur insured person will pay.
Advantages of Lump-Sum Payment
When a debt is restructured, you may pay it according to the agreed schedule or choose to pay it in a single lump-sum. If you pay the restructured debt in full upfront, certain discounts will be applied.
Events Considered Restructuring Violations
Under Bağ-Kur debt restructuring, beneficiaries must make payments on time according to the agreed schedule. Otherwise, certain violations are deemed to have occurred and the restructuring may be cancelled. These violations include:
- Late payment or nonpayment of restructured instalments more than twice within a specified period
- Failure to pay more than two contributions on time within a calendar year, or late payment of those contributions
These situations are legally defined as violations of the Bağ-Kur restructuring agreement. If they occur, the restructuring may be annulled after the due date of the third instalment or contribution. Restructuring can also be cancelled at the individual’s request; to do so, the person must submit a written petition to the relevant institution.
You can also check your Bağ-Kur debt online through the e-government portal by logging in with your credentials.