31.10.2025 09:40
According to the Presidential Program for 2026 published in the Official Gazette, the Automatic Enrollment System is being transformed into a second-tier retirement model that will include employer contributions. In the implementation, which will be launched under the name Complementary Retirement System, a 3% deduction will be made from employees' salaries. The TES, which all employees will be required to join, will come into effect in 2026.
The 2026 annual program was published in the official gazette's supplementary issue. According to the annual program, a Complementary Pension System will be established, which will transform the Automatic Enrollment System (AES) into a second-tier retirement system that includes employer contributions. The opinions of relevant public and private sector stakeholders will be collected regarding the Complementary Pension System model created by the Insurance and Private Pension Regulation and Supervision Authority (IPPRSA).
TO BE IMPLEMENTED IN 2026
While the 2026 Presidential Annual Program includes plans regarding budget management, it was announced that the 'Complementary Pension System' (CPS), which has caused discussions in the public, will also be implemented in 2026.
3% DEDUCTION FROM SALARIES ON THE WAY
The relevant regulation foresees the mandatory participation of millions of employees, unlike the Individual Pension System (IPS) that has been in place for years, and a 3% deduction will be made from net salaries each month under this regulation.
In addition to the deduction from the employee, an additional contribution payment of 1% will be collected from the employer. The collected premium will receive a 30% support from the state, and this amount will be managed in the citizens' retirement pool for use in the coming years.
WHAT IS CPS?
The CPS was designed as a system aimed at compensating for income loss in retirement and increasing household savings. According to the Medium-Term Program (MTP), the Automatic Enrollment System (AES) will be transformed into a second-tier retirement system with the contributions of employers, establishing the CPS. Accordingly, participants in the AES will be granted access to the retirement funds included in the Individual Pension System (IPS), and an increase in fund amounts and participant numbers will be achieved.
MANDATORY TO STAY IN THE SYSTEM FOR 10 YEARS
All private sector employees will be included in the system planned to start in the second half of 2026. All employees within the scope will be included in the mixed CPS, and then those who wish can transition to the voluntary CPS. Employees will be required to stay in the system for at least 10 years. With the implementation of the CPS, the rights of all employees regarding severance pay for the previous period will be preserved in the same way. The rights related to severance pay for the employee's working periods before this date will be secured, and a transition to the mixed CPS will be made.
WAYS TO WITHDRAW PARTIALLY AND COMPLETELY
Participants who have not yet reached the age of 60 may, upon request, receive a one-time payment of up to 10% of the accumulated amount in their individual pension account for each of the reasons such as marriage, being unemployed for a one-time basis, first home acquisition, and serious illness, without exceeding 20% of the partial withdrawal rate in cases of multiple benefits.
Complete withdrawal from this system, which does not have a right of withdrawal or separation, will occur at the end of the retirement period, upon the employee's death, or in cases of disability. When the employee retires, they will exit the system when the monthly payment period allocated to them ends.
WHAT ARE THE RETIREMENT CONDITIONS?
The CPS was designed as a second-tier retirement system. Therefore, it differentiates from the first pillar retirement system under the Social Security Institution (SSI). When the employee reaches retirement age, they will retire from SSI and will also receive their second pension payment under the CPS when they turn 60. The individual can receive both pension payments simultaneously without any deductions or proportional reductions.
The retirement age for the complementary pension has been set at 60, but there is no duration requirement to retire. Since the contributions paid on behalf of the employee are in the individual's fund account, every employee will have the right to the accumulated amount in their account when they reach retirement age. In other words, whether someone has worked for 5 years or 30 years, they will receive payment from the accumulated amount in their individual fund account when they turn 60.