Burganbank mandatory individual pension application lets you retire earlier and grow your savings with state contributions. With the Burganbank Mandatory Individual Pension System Application, you can make payments monthly, quarterly or semi-annually. Burganbank charges an initial entrance fee of 20 TL after the pension contract is signed. If the participant leaves the system or transfers to another pension company within the first five years of the contract, the entrance fee is deducted from their accumulated balance. After the fifth year of the contract is completed, no entrance fee deductions are applied. In addition to monthly savings, a 25% state contribution is added.
How much is the state contribution to the Burganbank Mandatory Individual Pension System?
The state contribution to Burganbank pension is 25% of regular monthly contributions. However, the state contribution is only provided for payments made on a regular basis. The state makes an annual contribution to participants; the yearly gross amount considered for this calculation is up to 25% of the minimum wage. The state contribution is invested alongside participants’ paid contribution shares. If a participant leaves the system before 10 years, a 15% deduction is applied on the returns of the contribution. Other important points include:
- If a participant stays in the system for 10 years but leaves before acquiring retirement rights, a 10% deduction applies on the yields.
- Savings of participants who earned retirement rights but passed away are inherited by their beneficiaries.
- To receive the state contribution, the individual must be older than 18 and younger than 40 at the time of joining.
- Participants cannot retire before completing age 56; they must remain in the system until age 56 is reached.
- In emergencies, deferment of pension payments is possible. However, skipped consecutive payments cause contribution cuts and may result in loss of certain participant rights.
How to join Burganbank Individual Pension System?
To apply for the Burganbank pension system, you must visit a Burganbank branch to complete the application form, which the bank will then evaluate. Other options include:
- Calling Burganbank customer service at 444 1 666 to request entry into the individual pension insurance.
- Applying directly at a branch.
- Choosing an individual pension investment fund where your contribution will be invested.
- Using a flexible system designed for easy retirement planning.
- Participation is automatic for eligible employees but not mandatory; those who wish can opt out.
How to cancel Burganbank Individual Pension?
Cancelling Burganbank pension can be done by any participant. The individual pension system is voluntary and participants may leave within 2 months of joining. If a participant leaves after the initial 2 months but before completing 10 years, the state contribution is subject to deductions. Therefore, it is advised to confirm completion of the 10-year period before leaving. To cancel the pension:
- Submit a cancellation request in person at a Burganbank branch.
- Call Burganbank customer service to request cancellation of the individual pension insurance.
- After leaving the pension, all deposited amounts are returned to the participant’s account; payments made within the last 14 days are refunded.
How to check Burganbank Individual Pension?
Burganbank pension inquiry can be done online. After submitting the Burganbank Mandatory Individual Pension System Application, you can check the application status and total contributions. To do so:
- Access the official government e-services portal with your national ID and e-Government password.
- Log in with your Turkish ID number and e-Government password.
- Navigate to Pension Monitoring Center → Individual Pension System → State Contribution Usage and Limit Information.
- From there you can view Burganbank individual pension details.
How much is the Burganbank mandatory pension deduction?
Burganbank mandatory pension deduction is calculated automatically based on the participant’s salary subject to social security contributions. Deductions are made from the prime-earnings base, generally around 3% of the total prime-earnings amount, but participants can choose higher limits. For 2019, the mandatory individual pension deduction was 53 TL, with a maximum set at 340 TL. For example:
- If monthly prime-earnings are 3,000 TL, the pension deduction would be approximately 90 TL.
- If monthly prime-earnings are 4,000 TL, the pension deduction would be approximately 135 TL.
- If monthly prime-earnings are 5,000 TL or more, the pension deduction would be around 150 TL.
Burganbank Individual Pension Contribution Cuts
Burganbank pension contribution rate is 25% from the state. This contribution can be reduced depending on how long the participant remains in the system. Key cases:
- If a participant leaves the system within 3 years, they are not entitled to receive the paid state contributions.
- Participants who stay between 3 and 6 years are eligible to receive 15% of the state contribution.
- A person who stays in the system for 10 years but exits before turning 56 is entitled to 60% of the state contribution.
- If a participant stays more than 10 years and reaches age 56, they are entitled to the full state contribution.
Is there a right of withdrawal from Burganbank Individual Pension?
To exercise the right of withdrawal from Burganbank pension, the participant must remain in the system for up to 2 months. Process details:
- The participant must notify the bank of their decision to withdraw by phone, fax, email or post.
- Within 5 days of receiving the cancellation request, Burganbank must send the information form and account statement to the participant.
- After the withdrawal form is processed, all paid amounts are returned to the participant’s account. Due amounts are repaid within 20 days.
Advantages of Burganbank Individual Pension Insurance
Burganbank individual pension insurance offers advantages such as earlier retirement and higher pension income. Additional benefits:
- Participants who stay at least 3 years and make regular payments may use the withdrawal right later and are entitled to 15% of the state contribution after 3 years.
- Participants who stay and pay regularly for 6 years are eligible to receive 35% of the state contribution if they decide to leave.
How much is the total investment in Burganbank Individual Pension?
Burganbank total investment depends on state incentives and the time the participant remains in the system. Alongside personal contributions, a 25% state contribution is added to the total savings. To benefit from these incentives, participants generally need to remain in the system for at least 3 years. If a participant leaves before meeting the required periods, they may lose entitlement to the state contribution. After submitting the Burganbank Mandatory Individual Pension System Application, participants are expected to make regular payments and remain in the system, particularly for the 10-year period, to secure full benefits.