TESK retirement refers to an arrangement for tradespeople and artisans affiliated with Türkiye Esnaf ve Sanatkarları Konfederasyonu who have met age and insurance duration requirements but cannot retire due to outstanding premium debts. Under this arrangement, eligible persons can clear their premium debts and repay the amount in installments, similar to a loan. Payments are calculated on current values; as of today, the standard monthly installment is 700 TL. Unpaid debts accrue penalties and interest, so those who restore long-accumulated premium debts previously faced totals of around 50–60 thousand TL when calculated at current rates. To help those prevented from retiring by these debts, a lending option has been introduced.
Pension Premium Debts
The number of prospective retirees unable to pay large insurance premium debts has reached significant levels. The TESK tradesman loan targets those groups who frequently struggle to pay: tradespeople, artisans, farmers, and self-employed professionals. Unpaid premiums grow rapidly over time as interest and penalties accumulate. To assist people trying to settle their premium debts—particularly Bağ-Kur members—certain legal rights and options have been provided. For example, even premium debts accumulated over 10–15 years can be settled in a single transaction under this scheme.
Loans at 1.28% Interest
A protocol was signed between the Social Security Institution (SGK) and Ziraat Bank to provide credit to Bağ-Kur members who have acquired the right to retire but cannot do so because of outstanding premiums. This credit is available at a 1.28% interest rate with up to 48 months maturity. The facility is not limited only to those whose issue is premium debt; it also covers people who require debt recognition for periods like military service or maternity leave.
No Blacklist Checks
According to information from Jülide Sarıeroğlu, the Minister of Labor and Social Security, no commissions will be charged on these loans. Installments for those who take this loan to close premium debts will be deducted directly from their pension payments. Applicants will not be subject to background checks related to past credit history; even those on a blacklist can benefit from the TESK tradesman loan.
About Applications
Applications for TESK’s “loan-to-retire” require that applicants meet the age, premium, and insured service duration criteria. Eligible Bağ-Kur members must obtain an official document from the Social Security Institution stating “If the premium debt is paid, the person can retire.” With that document, they apply at a Ziraat Bank branch. The bank will prepare a repayment plan based on the expected pension amount.
Applications for TESK retirement loans do not consider an applicant’s trade registry status, and the initial application period ends on July 31. Turkey Tradesmen and Artisans Confederation President Bendevi Palandöken has stated that this deadline may be extended if necessary.
Who can apply and how are monthly payments calculated? Below are typical monthly premium amounts and common creditable periods for various categories:
- For agricultural (farmer) Bağ-Kur members: Monthly premium payment is 583 TL.
For Bağ-Kur tradespeople and artisans: Monthly premium payment is 700 TL.
- For company shareholders: Monthly premium payment is 700 TL.
For women who gave birth after becoming insured: For one child, the calculated debt is 15,586 TL; for two children, 32,039 TL; for three children, 46,759 TL.
- For military service periods (minimum amounts):
30 days: 649.50 TL; 6 months: at least 3,897 TL; 12 months: 7,794 TL; 18 months: 11,691 TL; 20 months: 12,990 TL.
Military Service and Maternity Credit
Maternity credit for women who wish to turn childbirth periods into insured service starts at about 15,558 TL for one child and rises to approximately 31,176 TL for two children. Men who completed 18 months of military service would face at least 11,691 TL if they choose to buy back the entire period. Most Bağ-Kur members could not afford these lump-sum payments. The protocol between Ziraat Bank and SGK—initially valid for three months—aims to make these retirement options feasible by offering installment-based repayment.
Three-Month Application Window (Extendable)
The TESK retirement application window was announced as a three-month period. However, Bendevi Palandöken noted that the duration can be extended if demand requires. Palandöken emphasized that the protocol will allow tradespeople to clear premium debts, maintain access to health services for themselves and their families, and ultimately retire. SGK President Mehmet Selim Bağlı added that the 1.28% monthly interest rate is well below market levels and that while the protocol is valid for three months, it can be extended twice if there is sufficient demand.
Example Calculation
For example, a Bağ-Kur member who restores five years of frozen service would need to pay at least 42,000 TL. If this amount is financed through a 48-month loan from Ziraat Bank, the monthly installment would be approximately 1,243 TL. The total repayment at the end of the term would be about 59,676 TL. When determining eligibility and repayment capacity, Ziraat Bank will consider the pension amount the applicant is expected to receive, and the monthly installment should be covered by that projected pension.
Currently, the application deadline for TESK’s “loan-to-retire” program is July 31, 2018, but authorities have indicated this period may be extended. Applicants must obtain the “If the premium debt is paid, the person can retire” document from the Social Security Institution and present it at a Ziraat Bank branch to complete their application. Ziraat Bank will then prepare the appropriate repayment plan.