What Is the Private Pension System (BES)?
The private pension system, known in Turkish as Bireysel Emeklilik Sistemi (BES), is a long-term, voluntary savings scheme, supported by a state contribution, in which regular contributions paid during a person's working life are invested in pension mutual funds. Its purpose is to build, on top of the mandatory social security system (SGK), a complementary pool of savings and income for retirement. The participant pays regular contributions, these amounts are directed into the funds in the chosen pension plan, and they accumulate over time. The system is voluntary: a person can set the contribution amount, pause payments, or terminate the contract.
How the system works and who the parties are
BES has three distinct core parties:
- Pension company: the institution that draws up the pension contract, collects contributions and runs the plan.
- Portfolio manager: the portfolio management company that manages the pension funds' assets; fund management is subject to the SPK's Communiqué III-55.1.
- Custodian: the institution where the fund assets are safekept on the participant's behalf (Takasbank).
The participant signs a pension contract, chooses within the plan which pension mutual funds the contribution is invested in, and can change that choice over time. The funds are priced daily on a unit share value just like an ordinary fund; their returns depend on market conditions and are not guaranteed.
State contribution and vesting
A structural element of the system is the state contribution: the state adds an extra amount equal to 20% of the contribution the participant pays. This applies up to an upper limit set each year; because that limit changes from year to year, it is not stated here. The state contribution is tracked in an account separate from the participant's own savings and is also invested.
Entitlement to the state contribution vests gradually: the longer the participant stays in the system, the higher the share of the state contribution and its returns they become entitled to (on a schedule that rises at certain year thresholds), reaching the full amount once the right to retire is earned. The right to retire is obtained by meeting two conditions together: staying in the system at least 10 years and reaching age 56.
Automatic enrolment (OKS)
BES also has a workplace-based form: the Automatic Enrolment System (OKS). Here employees are automatically enrolled through their employers and a set share is deducted from their wages as a contribution. The employee has a right to withdraw (cayma): they may leave the system within the period allowed after being notified of their enrolment. OKS also carries the state contribution and the contributions are again invested in pension mutual funds; in this respect OKS is a workplace-based variant of voluntary BES.
How BES funds differ from ordinary funds
Pension mutual funds work on the same logic as the ordinary mutual funds traded on TEFAS: the concepts of unit share, portfolio, expense ratio and management fee all apply here too. But they differ in two basic ways: they sit inside a pension plan and they are subject to their own tax regime. For these two reasons this site treats BES funds as a separate category.
The most notable difference on the tax side is withholding (stopaj). Unlike the flat withholding regime of ordinary funds, in BES the withholding is taken only from the gain (irat) portion of the savings — not from the principal — and the rate varies in tiers by how long you stayed in the system and how you exit:
| Way of exiting | Withholding on the gain |
|---|---|
| Leaving after less than 10 years | 15% |
| 10 years+, leaving without earning the right to retire | 10% |
| Leaving having earned the right to retire (or due to death/disability) | 5% |
As the table shows, the lowest — and therefore, for the participant, the most advantageous — tier is leaving after having earned the right to retire. This tiered structure is part of the system's design to encourage long-term saving. Whether or not to join BES is a personal choice; this page explains how the system works and does not give advice.
Frequently asked questions
how much is the state contribution in bes?
The state adds a contribution equal to 20% of what the participant pays. This applies up to an upper limit set each year; because that limit is updated regularly, stating a fixed amount would be misleading. The state contribution is tracked in an account separate from the person's own savings.
when do you earn the right to retire in bes?
The right to retire is earned by meeting two conditions together: staying in the system at least 10 years and reaching age 56. Once earned, the participant becomes entitled to the full state contribution and the withholding applied at exit drops to the lowest tier.
how much withholding do i pay if i leave bes early?
Withholding is taken only from the gain portion of the savings and varies by time in the system. Structurally: 15% for leaving before 10 years, 10% for leaving after 10 years without earning the right to retire, and 5% for leaving having earned that right. No withholding is taken from the principal.
what is the difference between bes funds and ordinary mutual funds?
Pension mutual funds also work on the logic of unit share, portfolio and expense ratio; but they sit inside a pension plan and are subject to their own tax regime. Because of these two differences, BES funds are treated as a separate category.
In short
BES is a long-term, voluntary savings system, supported by a state contribution, in which regular contributions are invested in pension mutual funds; it also has a workplace-based automatic enrolment (OKS) form. The state contribution is structurally 20% of the contribution, and the right to retire is earned by staying in the system at least 10 years and reaching age 56. BES funds differ from ordinary funds both in sitting inside a plan and in the tiered withholding taken from the gain; this page explains the system and does not advise on joining.