An amending regulation that will affect private pension schemes’ administrative practices was recently published in the Official Gazette. 

Highlights

• Scheme participants can now change their investment fund allocation choices up to 12 times per year, up from six.
  
• From July 2021, participants can buy or sell all private pension system funds via the “Private Pension Fund Trading Platform (BEFAS),” enabling the comparison of funds’ investment performance and expanded access to different portfolios.
  
• Companies can use secure electronic communication tools, permanent data storage arrangements and digital channels as a way to access information and documents, such as detailed contract proposals and provisions. Participants also can submit electronic requests to join or leave the personal private pension system.
  
• The age to enter the pension system has changed. Parents can now enroll children younger than 18 years of age in a private pension fund.
  
• Associations, foundations and legal entities that already contribute to pension plans in Turkey or abroad will have until 31 Dec 2023 to transfer those funds to the new pension system, allowing employees to evaluate the performance of pension funds.

Related resources

Non-Mercer resource

• Regulation on amending the Private Pension System (Turkish) (Official Gazette, 25 May 2021)

Mercer Law & Policy resources

• Turkey: Date to re-enroll in auto-enrollment pension postponed (Mercer, 3 Nov 2020)