Reinstatement of Pensions for Those Who Used Overseas Debt Payments
Expatriates whose pensions were suspended because they worked briefly after retiring under the overseas debt payment (yurtdışı borçlanması) scheme now have an opportunity to have their monthly pension restored. Those affected must submit a written application to request reinstatement, and payments will resume from the date range specified in their petition.
New Monthly Payments for Those Who Purchased Overseas Debt Credits
The Social Security Institution (SGK) has introduced an important benefit for those who purchased overseas debt credits. A circular issued by SGK addresses retirees who bought foreign service credits and then had their Turkish pension suspended because they took on short-term work. The circular clarifies how to correct the pension reductions applied to expatriates who engaged in short-term employment, effective from June 26, 2020. Under previous rules, expatriates who secured retirement rights through overseas debt credits and then resumed work saw their pensions suspended. A change in June removed that automatic suspension for certain short-term jobs. As a result, individuals working in positions classified as short-term will continue to receive their pension, even if they are subject to mandatory social insurance abroad. The circular also explains which types of work qualify as short-term employment for this purpose.
For example, German service records that indicate exemption from insurance due to short-term employment or low-value work not subject to compulsory insurance will not trigger pension suspensions. Similarly, Swiss service records marked with code 4 will allow pension payments to continue. SGK has also requested that other countries with social security agreements provide descriptions of short-term work. Based on those definitions, pension payments for retirees engaged in short-term employment will not be cut.
Claims for Pensions for Short-Term Work Before the Change
With this regulation, pension claims from expatriates whose service records—issued by Turkey’s diplomatic missions abroad or by institutions in countries that have signed social security agreements with Turkey—indicate short-term employment will now be accepted. Previously, such pension requests were not validated while the short-term work was still ongoing. Those who began short-term work after already receiving a pension will no longer face pension reductions.
In addition, retirees who used overseas debt credit to obtain retirement and then lost their pension because of short-term work can recover their pension payments. SGK applies a ten-year statute of limitations for reclaiming undue payments. Repayments are sought for undue payments made in the last ten years. If the full amount is returned within two years, no interest is charged; interest applies if repayment exceeds two years. Considering the pension start date as a reference, amounts paid up to June 26, 2020 will be reclaimed for those whose short-term work continued beyond that date. However, even if short-term work continued after that point, there will be no deductions from pensions paid from July 1, 2020 onward.
Those Whose Pensions Were Cancelled Can Apply
Under the legislative change, expatriates whose pensions were canceled after being classified as engaging in short-term work can apply to have their pensions reinstated. Applications must be submitted in writing. Provided they continue to meet the retirement conditions, payments will resume as of the beginning of the month following the date the written petition is filed. Likewise, individuals whose retirement applications were previously rejected on the basis of short-term employment may reapply under this provision to claim entitlement to a pension.