Mandatory Private Pension System
The Private Pension System (BES), developed for the retirement periods of insured employees, is a mandatory application for all employees under 45 years of age. This system, also known as automatic enrollment, came into effect on January 1, 2017, and automatically included employees in this system. You can get information about the details of the system from online websites.
How Does the System Work?
The BES, which mandatorily includes employees in the system, is carried out through the employer. The employer is responsible for paying the BES deduction made in the name of the employee included in the system each month to the relevant insurance company. Employees do not need to make active payments. The employer, who deducts 3 percent under the name BES from the salary of the employees included in the system, ensures that the insured accumulates savings for their retirement by paying this to the insurance company.
Can Optional BES and Mandatory BES Continue Simultaneously?
One of the most frequently asked questions by those who are mandatorily included in the Private Pension System, called automatic enrollment, is whether optional BES payments and mandatory BES can continue at the same time. Some employees may have made private BES payments. In this case, those who have an existing BES account can continue both if they wish. Or they can exercise their right to cancel the mandatory BES. However, they must remain in the system for 2 months to cancel the mandatory one. One of the issues that those in this situation should pay attention to is that when they cancel their existing BES, their previous payments will also be canceled. For this reason, employees need to get information from online websites.
