Paying mandatory private pension contributions (BES) became compulsory in our country starting in 2017, with steps for automatic enrollment continuing through 2019. Originally designed as a voluntary system to help individuals accumulate savings for a more comfortable retirement, BES was later made mandatory by regulatory changes. The system collects and manages contributions so participants can receive either a lump-sum payment or monthly pension income upon retirement. The government also provides an incentive for participants in the form of a contribution subsidy, set at 25%.
BES aims to help people build a supplementary retirement income by saving a portion of their earnings during working life. Although it complements the social security system, BES operates as a private pension plan that supplements retirement income through individual savings and investment management.
What Is BES?
BES stands for the Individual Pension System (Bireysel Emeklilik Sistemi). It enables active workers to set aside part of their earnings to increase financial security in retirement. As a private pension scheme, BES functions as a complementary element to the public social security system, providing an additional income source after retirement.
If a participant remains in the BES system for at least 10 years, they may become eligible to retire at age 56. When eligibility for retirement is reached within the BES system, participants have three payout options:
- The participant can take their accumulated savings as a single lump-sum payment,
- They can choose a repayment plan and receive monthly pension payments,
- Or they can combine the two options—taking part as a lump sum and part as a scheduled monthly payment.
What Is the Mandatory BES System and Who Is Covered?
Following a regulation effective from 01.01.2017, BES—previously voluntary—became mandatory. Citizens of the Republic of Turkey under age 45 who work in the public or private sector are included in the mandatory BES scheme. Although eligible individuals are automatically enrolled, they retain the right to opt out within two months of enrollment.
If the opt-out (cancellation) right is exercised within that period, no financial loss occurs and the paid contributions are refunded within 10 business days. If an enrolled person does not use the cancellation right within two months, they cannot cancel within the next three years. Even if the opt-out right is later exercised, the participant will not be eligible to receive the government contribution subsidy that was paid on their behalf.
How to Check Mandatory BES Enrollment?
BES enrollment and related details can be queried online through the e-Government (E-Devlet) portal. The typical steps for this query are:
- Visit the relevant e-Government page for querying state contribution usage and limits (via the e-Government portal).
- Click the “Verify My Identity Now” option on the page to proceed.
- Complete identity verification using one of the available methods: e-Government password, mobile signature, electronic signature, Turkish ID card, or internet banking authentication.
- After successful authentication, you can view detailed information about your mandatory BES account and state contribution usage.
When Was Automatic BES Implemented and Was It Applied in 2019?
The regulations making BES mandatory began to be enforced in 2017, and the automatic enrollment process applied in stages based on employer size. The schedule for companies transitioning to the automatic BES system was as follows:
- Companies with 1,000 or more employees transitioned to automatic BES as of 1 January 2017.
- Companies with 250 to 999 employees joined on 1 April 2017.
- Companies with 100 to 249 employees joined on 1 July 2017.
- Companies with 50 to 99 employees transitioned on 1 January 2019.
- Companies with 10 to 49 employees joined on 1 July 2019.
- Companies with 5 to 9 employees were scheduled to transition on 1 January 2019.
How Much Is Deducted from Salaries for BES?
In the automatic BES system, enrollment occurs through the employer and contributions are calculated on the basis of the employee’s insurable earnings. A deduction equal to 3% of the insurable earnings is made for BES contributions. This 3% represents the minimum contribution; participants who wish to contribute more may do so, as there is no statutory upper limit on voluntary additional payments. The government adds a 25% contribution incentive on the amount of premiums paid by the participant if they remain in the system.
In 2019, BES deductions ranged from a minimum of 53 TL to a maximum of 340 TL. Examples:
- A person with a monthly insurable wage of 3,000 TL would have a BES deduction of 90 TL.
- A person with a monthly insurable wage of 4,500 TL would have a BES deduction of 135 TL.
- A person with a monthly insurable wage of 5,000 TL would have a BES deduction of 150 TL.
What Will a BES Participant’s Savings Look Like?
For a minimum-wage earner, the BES deduction is 53 TL per month, resulting in annual savings of 636 TL. With the 25% government contribution added, that total reaches 795 TL. Additionally, the government provides a one-time initial incentive of 1,000 TL for first-time entrants, bringing the first-year total to 1,795 TL.
If a person has a BES deduction of 100 TL per month, they will save 1,200 TL per year. Adding a 300 TL government contribution and the one-time 1,000 TL initial incentive yields 2,500 TL of savings in the first year. If a participant remains in BES for 10 years and retires at age 56, a person contributing the equivalent of 100 TL per month would accumulate roughly 16,000 TL over 10 years. This figure is a baseline; changes to the minimum wage and additional voluntary contributions can increase the total accumulated amount over time.
When Is the Government Contribution Reduced or Lost?
The government’s 25% contribution is reduced or lost under certain circumstances. These rules are:
- If a participant exercises the right to opt out within the first three years after joining, they forfeit any government contribution benefit.
- If the participant opts out during years 3 to 6, they are entitled to only 15% of the government contribution.
- If the participant opts out during years 6 to 10, they are entitled to 35% of the government contribution.
- If the participant remains in the plan for more than 10 years but opts out before turning 56, they are entitled to 60% of the government contribution.
- If the participant remains in the BES system for more than 10 years and reaches age 56, they are entitled to 100% of the government contribution.