Are you seeking a prosperous, comfortable retirement? PPI Automatic Participation is the perfect product for making your dreams of a happy retirement come true.
About PPI Automatic Participation
PPI Automatic Participation enables those under the age of 45 who work in the public or private sector to be included in the Private Pension System
How to Get PPI Automatic Participation?
In order to apply for PPI Automatic Participation, one must meet certain criteria. Below is a list of circumstances that make it possible for a person to apply for this system:
- Besides citizens of the Republic of Türkiye, persons within the scope of Article 28 of the Turkish Citizenship Law No. 5901 and under the age of 45 as of January 1st, 2017, are covered by automatic participation.
- Employees under the coverage of Social Security Institution (4/a) can apply for this system.
- Civil servants under the coverage of the Republic of Türkiye Retirement Chest (4/c) are within the scope of automatic participation.
- Artisans, business owners, and freelance workers covered by Bağ-Kur (4/b) cannot apply for PPI Automatic Participation.
Details on PPI Automatic Participation
PPI Automatic Participation offers various advantages and features that provide an easy retirement process. Following is a list of the critical details you must know about the system:
- You can enjoy a 30% state contribution in the PPI Auto-Enrolment application.
- Once you enter the system, you will receive a one-time additional contribution of 1,000 TRY.
- You have the right to withdraw within the first two months after joining the system.
- Besides the right of withdrawal, you can also have the right to suspend the contribution payment in cases determined by the Undersecretariat of Treasury.
- When you are eligible for retirement, you will receive an additional 5% contribution to your savings.
- The standard contribution rate payment corresponds to 3% of your premium-based earnings. You can increase the contribution rate to reach a higher pension accumulation.
- The Council of Ministers has the right to change the rate of contribution.
- If you choose to receive the savings in your account as a regular income under an annuity for at least 10 years, you can receive an additional state contribution corresponding to 5% of your savings.
Channels to Apply for PPI Automatic Participation
You can request your employer to carry out the application process. Your employer must apply on your behalf for PPI Automatic Participation.
Frequently Asked Questions About PPI Automatic Participation
What will happen to the account opened in the pension company if the employee changes their workplace?
If an employee changes their workplace, their pension still belongs to them. Therefore, their savings and the pensionable service in the system are moved to the new workplace.
Can I opt out of the PPI Automatic Participation after my right of withdrawal expires? Will there be any restrictions or expense deductions in this case?
You can opt out of the PPI Automatic Participation after your right of withdrawal expires. In this case, income tax is deducted from the amount corresponding to the investment return you have obtained, depending on the time spent in the system.
Will the pension companies charge an entrance fee or management expense deduction?
No, companies do not charge any fee other than fund operating expenses.
Will employees' contributions be protected in case of foreclosure or bankruptcy?
In such cases, the contribution share is considered a privileged debt in favor of the employee.
Will the employer pay contributions?
Employers do not need to make contribution payments within PPI Automatic Participation.
Do employees who already have an account in the system need to open a new one?
Yes. Employees who have participated in the system individually in previous years and are eligible for PPI Automatic Participation must open a new account.
What will happen to the account opened in the pension company if the employee changes their workplace?
If an employee changes their workplace, their pension still belongs to them. Therefore, their savings and the pensionable service in the system are moved to the new workplace.