Employer Group Pension Plan

Employer Group Participation Pension Plan

Pension plans offered to organizations willing to pay contributions for their employees have more attractive terms than plans offered to individual participants. Depending on criteria such as the number of employees and group participants and the total fund size, special advantages such as low management expenses and entrance fee deductions are provided.

While the PPS provides additional income to the employees during the retirement period, the employer who makes payments on behalf of the employee increases the motivation and loyalty of the employees to the institution. In addition, the employer may deduct the amounts paid on behalf of the employees from the corporate tax base by directly recognizing the payments as expenses, up to 15% of the monthly gross wage of each employee, and up to the annual amount of the annual gross minimum wage.

The entitlement period application means that the employees included in the Personal Pension System with corporate contributions are entitled to the contributions paid by their employers on their behalf after working in that company for a certain period. This period cannot exceed 7 years from the date of the participant’s entry into the group pension agreement.