“Has there been any regulation for those with tax records but without Bağ-Kur registration?” This question concerns many workers who have entered the labor market. In this article, we explain the current situation and recent developments on this issue.
Is There a Supreme Court Decision on Retroactive Bağ-Kur Registration?
There is no general practice of retroactive Bağ-Kur registration. People who were Bağ-Kur eligible but did not register between 4 October 2000 and 1 October 2008 are not being retroactively charged by the SGK (Social Security Institution) based solely on earlier chamber, tax or registry records. In other words, because courts have not confirmed Bağ-Kur registration for periods before 1 October 2008, those who were not registered cannot claim Bağ-Kur service days for those earlier periods.
Does the Omnibus Law Include Retroactive Bağ-Kur Registration?
The omnibus law (torba yasa) included provisions addressing people who have tax records but lack Bağ-Kur registration. This change affects roughly 1.2 million potential Bağ-Kur contributors and created retirement opportunities for about 500,000 debtors. Previously, those who did not pay Bağ-Kur contributions up to 2008 could not benefit from Bağ-Kur. With a provision later added to the omnibus law, people who can claim back periods from 2000 and earlier may be able to purchase those periods and become Bağ-Kur contributors. Individuals who had registrations dating back to 1982 but lacked Bağ-Kur records may now be able to re-record and buy service time.
For those with pre-2000 tax records but without Bağ-Kur registration, the law allows Bağ-Kur registration based on those tax records, enabling eligibility for retirement. A registered Bağ-Kur individual will see a debt calculated; if that debt, once paid, provides sufficient qualifying period for retirement, the state may offer a bank loan solution to help the person retire. Because pension amounts increase with the amount of recognized contribution history, registering earlier periods can raise the eventual monthly pension.
To ease payment of restructured contribution debts under the omnibus law, the Social Security Institution signed a cooperation protocol with Ziraat Bank. Employers and Bağ-Kur contributors with SGK contribution debt can apply to restructure their debts under the law. If applications are submitted by 2 May 2011, all eligible debtors can benefit from restructuring. The law also provided an additional option for Bağ-Kur debtors who were unable to retire: they could use a bank loan and accept monthly deductions from their future pension (not exceeding 3/2 of the monthly pension payment) for up to five years to achieve retirement eligibility.
What About Those Who Previously Had Tax Liability but No Bağ-Kur Registration?
Under the law covering people with tax records but no Bağ-Kur registration, applicants must contact SGK Provincial Directorates or the Central Directorate to have their debts calculated. This determines how much they need to pay to qualify for retirement. With the debt calculation document, they can apply at Ziraat Bank branches to convert those debts into a loan.
As of 30 April 2015, Bağ-Kur contributors who had arrears exceeding 12 months and who already paid those arrears in full cannot reclaim those payments. Those who paid in installments or are still paying can opt to cancel installments and have the debt cleared. If no payment has been made at all, Bağ-Kur will erase those debts entirely within three months — by 31 July 2015. For example, if you have ten years of Bağ-Kur debt and do not wish to pay it, previously that debt could also block retirement under SSK or the Civil Servants’ Pension Fund (Emekli Sandığı). Under the new restructuring this obstacle can be removed. If you do not want to wait until the July deadline, you can submit a written petition and make payments to benefit from the law earlier.
Continuing the example: suppose you have ten years of Bağ-Kur debt but you only need three years of that period to qualify for retirement under SSK, Bağ-Kur or Emekli Sandığı. With the help of an expert, you can calculate the amount corresponding to the required months and pay only for those three years to achieve the needed service time.
If you wonder what happens to previously paid contributions, the months for which you paid will count as service time. If you no longer hold active Bağ-Kur coverage or do not need it, current monthly Bağ-Kur obligations will not accrue once you stop active coverage. If you have already restructured and paid Bağ-Kur debts under the omnibus law, you may also request debt deletion: submitting a petition to void the restructuring is sufficient to have the existing restructured debt removed.
One frequently asked question is whether service time can be restored and repurchased after debts are deleted. While you can repurchase service periods, you cannot pay only for the exact number of days needed at retirement if you previously canceled service records—this may lead to a larger debt when restoring service. If you do not initiate payment or application within three months, the system will automatically remove eligible debts, so it is important to obtain your Bağ-Kur account statement and file an application for restructuring under Law No. 6183 or for public debt restructuring under Law No. 6552 if installment plans are available. If you have irregular payments, you can reapply and submit a hardship form to have the restructuring revoked. Before asking to delete debt, obtain a reliable retirement analysis. If you already have retirement insurance under SSK or Emekli Sandığı, it may be advisable to delete Bağ-Kur debts and cancel those service days; but if you need Bağ-Kur days for retirement, paying the debt is usually the better option.
The proposal to allow purchasing days before October 2008 for those with tax records but no Bağ-Kur registration has been brought to the legislature. If enacted, this rule would allow many craftsmen and tradespeople to buy service days for periods before October 2008 and become eligible for retirement. For those with tax registration up to 4 October 2000 but without Bağ-Kur registration, the change would begin their insurance rights from that date forward. If implemented, this regulation could enable a large number of people to retire through debt restructuring and period purchase.