a)     Retirement upon the demand of the contributor

b)     Involuntary retirement

c)      Retirement due to age limit

d)     Retirement due to disability

RETIREMENT UPON THE DEMAND OF THE CONTRIBUTOR

            Until 08 Sept.1999, male contributors who had completed 25 and female contributors who had completed 20 years of service were entitled to retirement regardless of their age. With the enactment of the Law no: 4447 known as the “Social Security Reform”, it was foreseen that female contributors who started working after 08 Sept.1999 would be entitled to retirement after they complete the age of 58 and 25 years of service and male contributors after 60 years of age and 25 years of service. Those female contributors who had completed 20 years of service and male contributors who had completed 25 years of service as of 08. Sept. 1999 would retire whenever they want regardless of their age. Those contributors who had not  completed the periods of service (20 or 25 years) would be entitled to retirement on the condition that they fulfil the age limits set for the transition period.

            Yet, some parts of the provisional article 205 added to the Pension Fund Law by Law No. 4447 (provisions related to the conditions of entitlement to pension and provisions related to the transition period) and the provisional article 206 were annulled by the decision of the Constitutional Court dated 23 Feb. 2001 No.E.1999-42, K. 2001-41. Provisional Article 205 was rearranged by Law No: 4759 dated 23 June 2002 and as a result, the transitional period in retirement was arranged as explained below:

As of the date of this Law (08 Sept.1999 when Law 4447 was put into effect) ;

Those female contributors who completed 20, and those male contributors who completed 25 actual service years, are paid pension upon their request.

If the female and male contributors complete the following ages respectively and female contributors complete 20, and male contributors complete 25 actual service years, they are paid pension upon their request.

a)          For those contributors whose remaining retirement service period to be completed is equal to or less than 2 full years, 38 years of age for women, 43 years of age for men,

                   As of 23.05.2002,

b)          For those contributors who have completed the retirement service period and those whose remaining retirement service period to be completed is equal to or less than 2 years, 40 years of age for women, 44 for men,

c)          For those female contributors whose remaining retirement service period to be completed is more than 2 full years, equal to or less than 3 full years 41 years of age; for male contributors with a remaining retirement service period of more than 2 full years and equal to or less than 3 years 6 months; 45 years of age.

d)          For those female contributors whose remaining retirement service period to be completed is more than 3 full years and equal to or less than 4 full years, 42 years of age; for male contributors with a remaining retirement service period of more than 2 years 6 months and equal to or less than 5 full years; 46 years of age.

e)          For those female contributors whose remaining retirement service period to be completed is more than 4 full years and equal to or less than 5 full years, 43 years of age; for male contributors with a remaining retirement service period of more than 5 years and equal to or less than 6 years 6 months; 47 years of age.

f)            For those female contributors whose remaining retirement service period to be completed is more than 5 full years and equal to or less than 6 full years, 44 years of age; for male contributors with a remaining retirement service period of more than 6 years 6 months and equal to or less than 8 full years; 48 years of age.

g)          For those female contributors whose remaining retirement service period to be completed is more than 6 full years and equal to or less than 7 full years, 45 years of age; for male contributors with a remaining retirement service period of more than 8 years and equal to or less than 9 years 6 months; 49 years of age.

h)          For those female contributors whose remaining retirement service period to be completed is more than 7 full years and equal to or less than 8 full years, 46 years of age; for male contributors with a remaining retirement service period of more than 9 years 6 months and equal to or less than 11 full years; 50 years of age.

i)            For those female contributors whose remaining retirement service period to be completed is more than 8 full years and equal to or less than 9 full years, 47 years of age; for male contributors with a remaining retirement service period of more than 11 years and equal to or less than 12 years 6 months , 51 years of age.

j)             For those female contributors whose remaining retirement service period to be completed is more than 9 full years and equal to or less than 10 full years, 48 years of age; for male contributors with a remaining retirement service period of more than 12 years 6 months and equal to or less than 14 full years , 52 years of age.

k)          For those female contributors whose remaining retirement service period to be completed is more than 10 full years and equal to or less than 11 full years, 49 years of age; for male contributors with a remaining retirement service period of more than 14 years and equal to or less than 15 years 6 months, 53 years of age.

l)             For those female contributors whose remaining retirement service period to be completed is more than 11 full years and equal to or less than 12 full years, 50 years of age; for male contributors with a remaining retirement service period of more than 15 years 6 months and equal to or less than 17 full years, 54 years of age.

m)        For those female contributors whose remaining retirement service period to be completed is more than 12 full years and equal to or less than 13 full years, 51 years of age; for male contributors with a remaining retirement service period of more than 17 years and equal to or less than 18 years 6 months, 55 years of age.

n)          For those female contributors whose remaining retirement service period to be completed is more than 13 full years and equal to or less than 14 full years, 52 years of age; for male contributors with a remaining retirement service period of more than 18 years 6 months and equal to or less than 20 full years, 56 years of age.

o)          For those female contributors whose remaining retirement service period to be completed is more than 14 full years and equal to or less than 15 full years, 53 years of age; for male contributors with a remaining retirement service period of more than 20 full years and equal to or less than 21 years 6 months, 57 years of age.

p)          For those female contributors whose remaining retirement service period to be completed is more than 15 full years and equal to or less than 16 full years, 54 years of age; for male contributors with a remaining retirement service period of more than 21 years 6 months and equal to or less than 22 full years, 58 years of age.

r)        For those female contributors whose remaining retirement service period to be completed is more than 16 full years and equal to or less than 17 full years, 55 years of age

Those who are covered by article 39 (e) and (f) are paid pension, if they have completed 25 actual service years and the ages above.

            The increments to the actual service periods of those contributors covered by article 32 are discounted from the age limits set forth in this article.

            Accordingly, in order for the contributors to be entitled to retirement, female contributors must have completed 20 and male contributors 25 years of service and must have reached the age limits counted above with respect to their years of service as of 23 May 2002.

            On the other hand, those who have completed 20-25 years of service after the enforcement of the law and who have resigned before they reached the age limits indicated in the transition period, can apply for retirement after they fulfil the age requirement on the condition that they do not work subject to other social insurance institutions.

COMPULSORY RETIREMENT

Those employees who have completed 30 years of service can be retired by their institutions regardless of their request.

Those persons who have been compulsorily retired by their institutions due to the age limit are entitled to pension if they have 15 years of service.

Persons who have been compulsorily retired due to immorality, inadequacy or misconduct must have 25 years of service or must be 61 years of age in order to be entitled to pension. If not, they receive lumpsum payment.

RETIREMENT DUE TO AGE LIMIT

Contributors are retired regardless of their request when they complete certain age limits.

The general age limit is the completion of the age of 61. There are certain exceptions to the age limit.

Note: The Constitutional Court decided on a stay of execution with the article 40 of the Pension Fund Law amended by Law 4919 with regards to the age limit for compulsory retirement. Consequently, the age limit for compulsory retirement is 65.

RETIREMENT DUE TO DISABILITY

Contributors who are unable to work due to bodily injuries or incurable diseases are retired due to their disability.

There are three kinds of disability:

a)        Ordinary disability

b)        Occupational disability

c)        War disability

Ordinary Disability

The contributors must have completed at least 10 years of service in order to be entitled to ordinary disability pension. To those whose service period is less than ten years, a lumpsum payment is made.

As an exception to this rule, ordinary disabled contributors who have five years of service and who cannot continue their lives without the help of another person are alloacted pension calculated for 15 years of service.

Occupational disability

If disability;

a)   Originates from the tasks assigned to the contributor during the performance of his work;

b)   Originates from the performance of tasks assigned to the contributor by organizations other than his/her own organization

c)   For the purpose of protecting the benefits of the organization, when doing a certain work, it happens due to this work in hand (provided the purpose mentioned is accepted by the organization concerned);

ç)  Originates from an accident in one of the following workplaces or an accident which occurres due to the nature of such workplaces or circumstances of the work previously or during or after the work is completed:  in plants, workshops or similar locations;

Such disability will be called “employment disability” and those who have experienced such an accident “employment disabled”.

Employment disabilities. If the origin of disability is:

a)   Using intoxicating drinks and all kinds of similar substances;

b)   Violation of laws, rules or regulations and instructions;

c)   Prohibited acts;

ç)  Suicide attempt;

d)   With the purpose for whatever reason, obtaining interests for himself or for others;

Then, such individuals are subject to the provisions of “Ordinary Disability”.

SURVIVORS’ PENSION

The Article 67 of the Pension Fund Law describes husbands and wives as “widow/er” and mother, father and children as “orphans”

The widow/ers of the deceased retired person and the survivors of contributors with 10 and more years of service, and the orphans of the above mentioned persons who fulfil the conditions cited in the Law are entitled to survivors’ pension.

The orphans of deceased contributors with five years of service are entitled to pension until 18 years old. If such orphans continue their high school and university education they receive survivors pension calculated for 15 years of service until 18 and 25 years of age respectively.

In addition disabled and dependent widow/ers of deceased survivors with 5 years of service are entitled to pension.

Survivors pension can not exceed the amount of pension the contributor would have been receiving if s/he were alive.

DEATH GRANT

Death grant is paid to the person declared by the contributor during his lifetime. If the contributor had not made a declaration, it is paid to his/her spouse. In the absence of a spouse, it is paid to the children. In the absence of children, to the parents, and in the absence of parents, to the siblings. If the payment of the death grant is not possible as explained above, it is paid to those persons who afford the funeral costs and can certify the expenses.

The death grant amount is 651.700.000 TL since 01 Jan. 2003. Yet, if the pension of the deceased (executive compensation, representation compensation and job compensation not included) exceeds that amount, the death grant is calculated on the basis of the monthly pension of the person concerned.

MARRIAGE BONUS

The marriage bonus comprises of the total amount of twelve folds of the last monthly payment made to the widow/er and female orphan at the time of his/her marriage.

MEDICAL AID

As per the provisional Article No. 139 of the Act No. 5434, the Pension Fund for the Civil Servants of Turkey pays medical aid to those entitled to retirement, invalidity and job disability pensions from the Fund and their dependant family members as well as the survivor pensioners in accordance with the Budgetary Implementation Instructions yearly published by the Ministry of Finance.

The medical aid covers 100% of the hospital, operation and treatment and implant charges, 90% of the drug costs, and the spectacle glasses and frames, body organ implants and hearing aids, physical and natural spring treatments and medical travelling charges are also in coverage of medical aid.

WHO BENEFITS FROM THE HEALTH AID

1-          Those who receive, retirement, disability, and survivors pensions from the Fund

2-          a) The spouses

b) unmarried male and female children under the age of 18 (under twenty if they are in high school education, and under twenty-five if they are in university education)

 c) Unmarried and dependent (in destitute) female children.

               d) Disabled and dependent male children regardless of their age

        e) Mothers and fathers of those receiving retirement and disability pension benefit from the health aid.

WHO CAN NOT BENEFIT FROM THE HEALTH AID

-         Those who benefit from health aid provided in the framework of special laws

-         The spouses of those receiving retirement or disability pension from the Fund who are employed/retired under a different social security organisation

-         Survivors who work subject to another social security organisation or receive old age or disability pension from another social security organisation.

THE COVERAGE OF THE HEALTH AID

1.        Hospitalisation, operation and treatment expenses

2.        Dental treatment and prosthesis expenses

3.        Optical lens and frame expenses

4.        Bodily organ and prosthesis expenses

5.        Spa treatment expenses

6.        Hearing aid expenses

7.        Medical travelling charges

8.        Medicine expenses

9.        Medical equipment and materials expenses

HEALTH INSTITUTIONS

Medical examinations and treatments are basically carried out in public health institutions.

Nevertheless, for some examinations and treatments the pensioners can go to private health institutions if those examinations and treatments are not provided in public institutions or if there are delays.

MEDICINE EXPENSES

%10 contribution to the price of pharmaceutical products prescribed and bought from the contracted pharmacies is deducted from the pension. But, medicines used in diseases like tuberculosis, cancer, chronic kidney, mental diseases, organ transplantation which necessitate long-term treatment or medicines used in in-patient treatments are not subject to 10% patient’s contribution.