As every year, retirees are once again receiving increases under the 2017 SGK pension raise framework. For 2017, raise rates are applied across the 4/a, 4/b and 4/c categories according to pre-established conditions. These increases are tied closely to the inflation rate projected for the period. If actual inflation exceeds the pre-set raise rate, retirees are paid an additional inflation difference. This article explains the periods when pension raises are applied and then details the 2017 pension increase rates with numerical examples.
Application Periods for Pension Raise Rates
- Retirees under 4/a are those who retired under the SSK system. For 4/a pensioners, raise rates are calculated based on inflation from the previous period and are applied twice a year, in January and July.
- Retirees under 4/b are those who retired under Bağkur. As with 4/a pensioners, 4/b increases are determined using the prior period’s inflation and are applied every January and July.
- Retirees under 4/c are those who retired from the Civil Servants’ Pension Fund (Emekli Sandığı). Unlike other groups, their raise rates are set through collective bargaining agreements and are likewise applied in January and July each year.
How Much Will Each Retiree Receive?
Using 2017 as the reference year, pension amounts can be estimated approximately as follows.
- For 4/a retirees (SSK), 2017 pension amounts were roughly calculated between 900 and 1,100 TL.
- For 4/b retirees (Bağkur), pensions for agricultural workers and farmers were estimated around 800 to 900 TL, while non-agricultural Bağkur retirees were estimated around 900 to 1,000 TL.
- For 4/c retirees (Civil Servants’ Pension Fund), the minimum pension for civil servants was estimated at about 1,900 TL.
Finally, regarding the question of when pension difference payments will be made: for 4/a, 4/b and 4/c retirees any adjustments that become definitive in January or July are applied for the remainder of the year. Based on 2017 figures, the July increases were finalized as of July 3. In that adjustment, 4/a and 4/b retirees began receiving a 5.89% raise. 4/c retirees received a raise composed of the 4% agreed increase plus an inflation adjustment of 2.89%, for a total increase of 6.89%.