Attention, those who want to leave BES: Warning of cuts exceeding 14 thousand TL from an expert

The course of the number of participants in the Private Pension System (BES) has been a matter of curiosity since the week of September 18, when some investment funds traded on the Türkiye Electronic Fund Distribution Platform (TEFAS) were liquidated.

According to the information shared by BES Expert Zeynep Candan Aktaş, based on Pension Monitoring Center (EGM) data, the number of participants in voluntary BES increased, despite the claims that there was a massive outflow from BES after the fund liquidations.

While there were 10 million 362 thousand 432 people in the system in the week of September 18, this number increased to 10 million 378 thousand 210 in the week of October 2.

Thus, a net 15 thousand 778 people were added to BES in approximately two weeks.

WHAT INTERRUPTIONS Await THOSE WHO EXIT BES?

Aktaş also gave information about the deduction and state contribution rights that participants who intend to leave the system may face.

According to the information shared, those who leave the system before completing three years may face entrance fee and management expense deductions that can exceed 14 thousand TL. While previous deductions are deducted from this amount, the participant cannot benefit from the state contribution and a 15 percent withholding tax is deducted from the returns.

THOSE WHO COMPLETE THREE YEARS CAN RECEIVE 15 PERCENT OF THE STATE CONTRIBUTION

According to Aktaş, entrance fees and management expenses can be deducted from those who complete three years in the system.

While these participants are entitled to 15 percent of the state contribution, 15 percent withholding tax is deducted from their returns.

It was stated that there is no entry fee or management expense deduction for participants who have completed five years, and refunds can be calculated for some previous deductions.

While this group is entitled to 15 percent of the state contribution, 15 percent withholding tax is applied on the returns.

STATE CONTRIBUTION RIGHT INCREASES TO 35 PERCENT IN SIX YEARS

It was stated that there is no entry fee or management expense deduction for participants who have completed six years in the system.

While these participants are entitled to 35 percent of the state contribution, they can receive a refund of the deduction. A 15 percent withholding tax is applied on the returns.

THE RATE IS CHANGING FOR THOSE WHO COMPLETE 10 YEARS

Participants who have completed 10 years in the system but are under the age of 56 are entitled to 60 percent of the state contribution.

In this group, entrance fees and management expenses are not deducted, but a refund can be received. Withholding tax on returns drops to 10 percent.

FULL STATE CONTRIBUTION TO THOSE WHO COMPLETE THE 10 YEAR AND 56 AGE REQUIREMENTS

Participants who complete both the 10-year and 56-year age requirement in BES are entitled to receive the full state contribution.

While there is no entry fee or management expense deduction for these participants, a refund of the deduction may also be possible. Withholding tax on returns is calculated as 5 percent.