The government provides certain benefits to entitled individuals in our country, which help improve citizens’ quality of life. One important matter is who receives a lump-sum payment when an insured person dies. Under certain conditions, the state makes a one-time payment to the deceased insured person’s family members or other eligible beneficiaries.
A lump-sum payment (toptan ödeme) refers to returning paid contributions in a single payment when an insured person meets the age requirement for retirement but has not completed the required contribution period or insurance duration to receive a monthly pension. This lump-sum refund can be requested by the insured person while alive, or, if the insured person dies, eligible survivors may receive the payment provided certain conditions are met.
Article 5510 of the Social Insurance and General Health Insurance Law addresses lump-sum payments to beneficiaries following the death of an insured person. The law includes provisions that allow accumulated contributions paid on behalf of the insured to be paid as a lump-sum to eligible survivors when conditions for a death pension are not met but other criteria are satisfied.
Persons eligible to receive a lump-sum payment due to the death of an insured person are defined as follows:
- Survivors of an insured person who died while working under SSK (4/a) covered by Law No. 5510 are eligible for a lump-sum payment.
- Survivors of an insured person who died while working under Bağ-Kur (4/b) covered by Law No. 5510 are eligible for a lump-sum payment.
- Survivors of a person who began working for the first time under SSK (4/a) according to Law No. 5510 and then died are eligible for a lump-sum payment.
Limit on Lump-Sum Payments Following a Death
As noted above, the government pays a lump-sum to beneficiaries based on the deceased insured person’s paid contributions. The amount of this lump-sum cannot exceed the total lump-sum that could be paid to the insured person. To ensure this limit is not exceeded, the paid amount to beneficiaries may be reduced. Beneficiaries do not have the right to object to such reductions required to comply with the legal limit.
How the Lump-Sum Amount Is Calculated
Calculating the lump-sum payment after a death is another important aspect. According to Law No. 5510, if the person was insured under SSK or the Civil Servants’ Pension Fund, the lump-sum is calculated based on the contributions reported in their name. For those under Bağ-Kur, the calculation uses the paid premiums for disability, old-age, and death insurance in proportion. The amounts of these contributions for each year are updated with the annual coefficients applicable from the year the contribution was paid until the time of the request, and the lump-sum is paid accordingly.
Applying for a Death Lump-Sum Payment
Survivors who are entitled to receive a lump-sum payment due to the insured’s death must apply to the relevant institutions. Eligible persons can submit their application with a “request for allocation and declaration” form to the provincial directorates responsible for their place of residence. The application must include required documentation; examples of information and documents relevant to the application for a death lump-sum include the following:
- Student certificate for male children who are still in education: children under 18 are excluded; if in secondary education, they must be under 20; if in higher education, they must be under 25. The student document must be obtained from the school.
- A medical report from an authorized healthcare institution confirming disability for children with disabilities.
After review of the submitted documents and verification by the competent authorities, lump-sum payments are made to those found eligible.