New era in BES! Application requirements have been announced – Last Minute Economic News

Insurance and Private Pension Regulation and Supervision Agency (SEDDK) published the circular in which it determined the application principles for the partial payment application that it will put into effect on July 1.

With the application, participants will be able to receive up to 50 percent of the amount accumulated in their accounts in cases of marriage, house purchase and natural disaster, without leaving the system and losing their rights.

Participants who want to benefit from this application will be able to apply to the pension company they have a contract with, within the scope of the situation determined by SEDDK. Pension companies will control the applications of the participants through the infrastructure provided by the Pension Monitoring Center.

YOU MUST NOT RECEIVE PAYMENT BEFORE

In order to apply, participants must not have received partial payment before in the specified cases. While people with more than one private pension contract are given the right to apply only once, those who have previously received partial payment, except in case of a natural disaster, will be required to have at least 5 years from the previous partial payment date to the new application date.

Participants who apply for partial payment for the first time will be checked if they have been in the system for at least 5 years.

In addition to the duration requirement, SEDDK also determined some criteria for contribution payments. Those who have previously received partial payment, excluding natural disasters, must have paid a contribution of at least five times the monthly minimum wage from the previous partial payment date or participants who will use this right for the first time, from the contract effective date to the deadline.

???????It will be determined that there is no pledge, lien or transfer of receivables agreement in the individual pension contract. The acceptance or rejection result of the partial payment application will be notified to the participant via electronic communication tools within three business days from the date the request form reaches the company.

Participants can apply simultaneously with the requested documents or with documents showing that they got married or bought a house up to 2 months before the application date. Participants whose applications are approved and receive payment will be obliged to complete the application process by submitting the relevant documents to the company within 2 months after receiving payment.

As a document, a copy of the title deed document containing the verification code produced by the web title provided by the General Directorate of Land Registry and Cadastre will be submitted for the purchase of a house. In case of marriage, a civil registry sample produced with the e-Government system and containing a verification code will be submitted, and in case of a natural disaster, the document announced by SEDDK following the occurrence of the natural disaster will be submitted.

PARTIAL PAYMENT AMOUNT CAN BE DETERMINED UP TO 50 PERCENT

Transactions and calculations regarding partial payment will be made based on the number of fund shares in the participant’s account on the application date. Fund purchase instructions pending on the application date, contribution and state contribution amounts that have not yet been transferred to the participant’s account will not be taken into account.

The participant who has more than one type of fund share in his account will be instructed to sell fund shares from each fund type in proportion to the partial payment amount to his total savings. If there are ongoing processes regarding fund distribution changes or deductions in the account where the fund sales order will be given, these processes will be waited to be completed first. If the participants submit the document after the application, they will not be able to change the fund distribution until the partial payment process is completed, which is a maximum of two months.

Partial payment amounts will be paid to the participant’s account on the first business day following the day when all fund shares are converted into cash at the latest. If the documents are submitted after the application, the state contribution payment will be completed on the first business day following the day the fund shares are converted into cash at the latest.

If the amount converted into cash cannot be paid within 10 business days for any reason and if partial payment cannot be made, the application will be deemed not made. The amount will be directed to investment within two business days in accordance with the participant’s current fund distribution preference.

Participants can set the partial payment amount as 50 percent in the application form, or request a smaller amount. In applications made for housing purchases and marriage, if partial payment does not occur or the required documents are not submitted within 2 months, the right to partial payment will be deemed to have been used and 30 percent of the paid amount will be deducted from the state contribution account.

During the application, participants will sign a commitment stating that they will not leave their private pension contract for 3 years. The start date of this undertaking will be the partial payment date and the end date will be calculated by adding 3 years to this date. If the participant terminates the contract within the 3-year commitment period, other than retirement, death or disability, the state contribution amount received within the scope of partial payment will be collected with interest.

The circular also included the deadlines for document submission in cases of house purchase or marriage and examples given in cases where documents are not submitted.