Many citizens in our country work for a period and, once they meet the required conditions, apply to the relevant institutions to retire; if they qualify, they begin to receive a pension. For retirees, the rates of pension increases, the annual raise amounts, and the deductions from salaries are important. As living standards rise, the need for higher pensions increases proportionally. A large portion of these citizens are covered by Bağ-Kur. Therefore, both the lowest Bağ-Kur pension increase and the highest Bağ-Kur pension increase are significant for Bağ-Kur participants.
The Retirement Fund (Emekli Sandığı) concerns civil servants. The system was designed to secure the social protection of public employees who hold the status of civil servant, ensuring certain rights that cover retirement, disability, and death benefits so that their insurance needs are met.
SSK, known as the Social Insurance Institution, was established to help citizens with low incomes and financial difficulties by simplifying their access to social security. Thanks to this institution, insured individuals can access health services and other benefits during illness and similar situations.
Bağ-Kur provides a system for those who cannot work as formal employees in the public or private sectors and who run individual businesses. It enables them to insure themselves and qualify for retirement benefits. Bağ-Kur also grants access to health services and other needs. Changes in the lowest and highest Bağ-Kur pension increases directly affect these beneficiaries’ payments.
According to statements from the Social Security Institution, pensions are adjusted twice a year—effective in January and July—based on the most recent annual consumer price index for the previous six-month periods.
This year, pensioners across the country—including Bağ-Kur recipients and other insured groups—received three separate increases, which pleased many retirees. The next scheduled increase will take effect in January 2017 and will be added to pension payments at that time. In 2015, increases were applied to selected groups only; starting in 2016, raises were extended to both SSK and Bağ-Kur pensioners. In addition, the increase is applied proportionally to those who will retire during the year.
The third increase to pensions this year was applied in July. Inflation that occurred after January was added to pensions according to the determined calculation methods, establishing the new increased pension amounts. The amount of the lowest Bağ-Kur pension increase was set accordingly.
Now, many people are wondering what the pension increase will be after the inflation rate is announced next January. The Central Bank has published an end-of-year inflation target of 7.5%. If this projection holds, the estimated increase reflected in pension payments after January would be around 3.73%. Based on these figures, one can estimate the lowest Bağ-Kur pension increase. For Bağ-Kur tradespeople, the minimum pension is 1,163 TL, while for Bağ-Kur agricultural retirees the minimum pension is 916 TL.
According to these rates, the minimum pension for workers who retired before 2000 will rise to 1,339.38 TL. For workers who retired after 2000, the current minimum of 770.28 TL would increase to 798.24 TL under this adjustment.
Adjustments to civil servant pensions differ from those for other insured groups. Under provisions determined by collective bargaining agreements, civil servant pensions are scheduled to increase by 3% in January 2017.