Private Pensions Via Foreign Exchange To Expats

Private Pensions Via Foreign Exchange To Expats

  The bag law, which is on the agenda of Parliament and envisages changes in some laws, will also introduce new regulation in the private pension system (BES). If the bill becomes law, Turkish citizens living abroad will be able to enter the BES with foreign exchange, save money and benefit from all the facilities offered by the system. In the current practice, our citizens living abroad could enter the BES, but they had to make their monthly or annual contributions to the system in TL. Although most expatriates show interest in BES, they do not enter due to TL payments; ‘let me pay in foreign exchange, when my retirement comes, I will take my savings in foreign exchange’ he said. That's what the new law allows. INTERESTING 6.5 MILLION PEOPLE To the foreign currency BES, only; Blue Card holders may enter with persons who do not reside in Turkey. Since the change will mainly cover citizens living in Europe, the payments will be in euro. When you meet the conditions and retire from the system, your savings will be taken in euro. Someone will ask, "How many people does the new regulation concern?" We have about 6.5 million citizens abroad. Nearly 5.5 million of them are located in Europe, more than 2 million of them live in Germany and nearly 1.5 million live in France and the Netherlands. STATE CONTRIBUTION WITH EXCHANGE The state contributes as much as 25 percent of the contribution it pays to everyone who enters the system. The state will also contribute to expatriates, but this contribution will be in foreign exchange, not TL. The contribution will not be 25 percent. "The president is authorized to reduce this rate to 10 percent for contributions made in foreign currency”. It is understood from this that the state will contribute in foreign currency in the implementation of the BES, and the amount of the contribution will be less than 25 percent.