With the Regulation Amending the Regulation on Individual Pension System published in the Official Gazette dated 28.03.2023, certain amendments have been made to the Regulation on Individual Pension System ("Regulation"). These amendments will enter into force 6 months after the date of publication (i.e. 28.09.2023).
In this newsletter, we will only focus on the amendments on the Regulation with regard to employers. The amendments in concern are as follows:
- With the addition made to paragraph 3 of Article 18 titled
"Entitlement period and entitled accumulation"
of the Regulation, "consent of the
employer" has been added to circumstances* in which
the participant is entitled to contributions paid by the employer
on his/her own behalf and account and all of their returns without
waiting for the completion of the entitlement period.
*(i) termination of employment by the employer in this entity, except for just cause, or (ii) the participant's resignation from his/her job for just cause in accordance with Labor Law dated 22/5/2003 and No. 4857, or (iii) the participant's resignation from his/her job for compelling reasons such as disability, or (iv) termination of the employer group pension agreement by the participant , except in case of transfer of employer, or (iv) declaration of bankruptcy or concordat.
- Paragraph 1 of Article 26/C titled "Transfer of receivables" added to the Regulation, which includes regulations on the transfer of receivables to banks, states that employer group pension agreements cannot be transferred.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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