Statutory schemes of social security (Directive 79/7)

• Author: Kadriye Bakirci
• Pages: 75-86

75

7Statutory schemes of social security (Directive 79/7)

7.1General (legal) context

7.1.1Surveys and reports onthe practical difficulties linked to statutory schemes ofsocial

security (Directive 79/7)

In2006, the social security system inTurkey underwent a substantial reform. Four key

strategic objectives were at its origin: the introduction of a new social insurance system

merging three social insurance systems into one; the introduction ofa general health

insurance system; and the institutional transformation and introduction ofnon-

contributory payments.

In2006, the Social Insurance and General Health Insurance Act establishing the Social

Security Institution merged the three main institutions in charge of social insurance and

brought the 59–atthat time – existing pension schemes under one administrative

umbrella.

The Social Insurance and General Health Insurance Act was enforced gradually between 1

January 2008 and 1 October 2008: some parts took effect on 1 January 2008, others on

30 April 2008 and on 1 July 2008, and the main provisions entered into force on 1 October

2008.

It should be noted however that several earlier acts (or provisions thereof) have remained

in force, inparallel with the Social Insurance and General Health Insurance Act, such as

the Social Insurance Act,221 the Social Insurance forAgricultural Employees Act,222the

Social Insurance for Craftsmen, Artisans and other Self-employed Persons Act,223 and the

Retirement Fund Act (for civil servants).224

7.1.2Other relevant issues

In addition tothe public and compulsory (statutory) Turkish social security system, private

health and life insurance, and automatic enrolment in a private pension system is

available.

Private Health and Life Insurance:

Although state social security covers healthcare services, some Turkish people and most

of the foreign employers and employees choose to have additional private cover due to

shorter waiting lists and foreign-language speaking staff in private hospitals. Some

employers chose to provide private health and life insurance for their employee asbenefit

in kind.

Auto-Enrolment Private Pension:

Theamended Private Pension Savings and Investment System Act225 introduced

compulsoryautomatic enrolment ofworkers ina personal private pension scheme by

employers that issupplementary to the existing state pension plans. Under the act, all

publicly and privately employed wage and salary earners (covered under Articles 4/a and

221 Social Insurance ActNo. 506 (Social Sigortalar Kanunu) Official Journal 29, 30,31.7.1964.

222 Social Insurance Act for Agricultural Employees No. 2925 (TarımİşçileriSigortaları Kanunu) Official Journal

20.10.1983.

223 Social Insurance for Craftsmen, Artisans and other Self-employed Persons Act No. 1479 (Esnaf ve

Sanatkarlar veDiğerBağımsızÇalışanlar Sosyal Sigortalar Kurumu Kanunu),Official Journal14.9.1971.

224 Retirement Fund Act No. 5434 (Emekli Sandığı Kanunu) Official Journal 17.6.1949.

225 Amended Private Pension Savings and Investment System Act (Bireysel Emeklilik Tasarruf veYatırım

Sistemi Kanunu), No. 4632, Official Journal 7.4.2001, No. 24366. (Amended bythe Act No. 6740, which

was published intheOfficial Journalon25.8.2016).