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Announcement Regarding Arrangements on the Individual Pension System

İdare ve Vergi Hukuku - 27-09-2023

“Regulation on Partial Withdrawals in the Individual Pension System” (the “Regulation”) has been published in the Offical Gazette dated 26 September 2023 and numbered 32321 by the Insurance and Private Pension Regulation and Supervision Institution (the “Institution”).

 

The relevant Regulation has introduced the opportunity for participants who have had an individual retirement account opened in their name and on their behalf by the company under the pension contract to make partial withdrawals in situations such as education, marriage, home purchase, or natural disasters.

 

According to the Regulation, participants, provided that the right to make partial withdrawals has not been used for at least 5 (five) years, may apply for partial withdrawals within the scope of the contract by paying at least 5 (five) times the gross monthly minimum wage amount valid on the application date.

 

The Institution has set a condition that participants must commit not to terminate the contracts subject to partial withdrawal through the exit process within 3 (three) years from the date of partial withdrawal, except for retirement, death, or disability cases. It has also been specified that this right can only be used once.

 

With this Regulation, the procedures and principles to be followed for applications related to these regulations are also outlined. In addition, deductions to be made in case participants do not fulfill their commitments have been explained.

 

The relevenat Regulation has entered the force on the date of its publication, effective as of  26 September 2023, and you may find the detailed provisions in the Official Gazette.