SOCIAL SECURITY SYSTEM

(1)

SOCIAL SECURITY SYSTEM

IN TURKEY

(2)

The Institutional Structure Under the

Old S t

Old System

SSK Bağ-Kur Retirement Fund MoF and MoH Public

Bodies

Old Age Old Age Old Age

Invalidity Invalidity Invalidity Survivorship Survivorship Survivorship Occ. Disease

Work Accident

The agricultural employed are not covered

Maternity Maternity no Maternity Maternity Maternity –no

cash benefit

(through health care system)

Maternity

(no contribution is made by the insured – health care costs)

Maternity for civil servants

(no contribution is (

made by the insured)

Health Care Health Care Health Care for

pensioners Non-Contributory Payment

Health Care for civil servants Payment

(3)

Legal Basis (1)

•

The Constitution of the Republic of Turkey

•

The Constitution of the Republic of Turkey

Article No 60: Everyone has the right to social security.

y

g

y

The state shall take the necessary measures and establish the

organization for the provision of social security.

•

Social Security Institution Law No: 5502

•

Social Insurance and Universal Health Insurance

•

Social Insurance and Universal Health Insurance

(4)

C

t ib t

S

t

Legal Basis (2)

•

Contributory System:

• Social Insurance and Universal Health Insurance Law No:5510 (as of 1st October 2008)

• Law on Unemployment Insurance No. 4447.

• Obsolete Laws of which articles are still in effect

• Social Insurance Law No:506 and Social Insurance Law For Agricultural Employees No. 2925 • Social Insurance Law No: 1479 for the Craftsmen and Artisans and Other Self Employers • Law on Retirement Fund No. 5434 (for civil servants)

•

Non Contributory System:

•

Non Contributory System:

• Law on payment of pension to the old aged persons (65 years old and over) who are destitute No. 2022

• Law on Social Assistance and Solidarity Fund No 3294 • Law on Social Assistance and Solidarity Fund No. 3294

• General Directorate for Social Services and Child Protection Law No. 2828 • Law on issuance of Green Cards for the citizens who are incapable to pay for

Health Care Services No 3816 Health Care Services No. 3816

(5)

Social Security Schemes

Old Age,

Invalidity,

Survivorship,

Work Accident and occupational diseases,

Health Care,

Unemployment (Executed by Iskur),

(6)

Premium Rates

C t ib ti Contributio C t ib ti

INSURANCE Type _{by Employees}Contribution Co n by u o

Employers TOTAL

Contribution by Government

Invalidity, old age, _9% _11% _20% survivorship 9% 11% 20%

Gov.

Contribution in the amount of Short Term Insurance

the amount of 1/4* Total contributions actually collected Branches (employment injuries,

occupational diseases, sickness, maternity) - 1% -6,5 % _6,5%1% -y annually. Universal Health Insurance 5% 7,50% 12,50% Unemployment 1% 2% 3% 1% TOTALO 14%4% %19,5 - %25, 33,5% -_39%_39%

(7)

Old Age

Scope Employed self employed civil servants

Scope Employed, self employed, civil servants

Conditions Age : 65

(gradually increasing from 58 for woman and 60 for man as of 2036)

Contribution period : contributory period of 9000 days for civil servants and self employed; 7200 days for

workers

(8)

Invalidity

Scope Employed self employed civil servants

Scope Employed, self employed, civil servants

Conditions minimum 60% loss of working capacity or earning capacity after entry into the insurance system.

Contribution period: Minimum 10 years of insured employment and 1800 premimum days.

10 years of insured employment is not sought for those who need constant care by others.

For the self employed, no premium debts including UHI premiums

* Reduction is made for the disabled persons which are not entitled to Invalidity Pension

Benefits Invalidity pension

(9)

Survivorship

Personal Scope Widow/ers children and parents of the employed self

Personal Scope Widow/ers, children and parents of the employed, self employed, civil servants

Conditions

Contribution period: 1800 days of contribution for Contribution period: 1800 days of contribution for workers, civil servants and self employed. Survivors of workers can apply for pension if the deceased had been insured for 5 years and had 900 days of premium y y p

payment excepting the service debt periods.

Benefits Old age pension, lump sum payment, marriage payment and funeral payment.

(10)

Health Care

Personal Scope Turkish citizens residing in Turkey,

l d k d f d b d f

Persons employed in Turkey and transferred to abroad for business and their dependants,

Refugees and stateless persons,

Foreigners residing in Turkey and not covered by insurance Foreigners residing in Turkey and not covered by insurance according to the Legislation of another country

Conditions Contribution: Minimum 30 contributory period of days the

scheme in preceding year and not having contribution related dept t th I tit ti i di 60 d

to the Institution in preceding 60 days Exemptions From Conditions:

Children under 18

Delivery of urgent health services Delivery of urgent health services Treatment of communicable diseases Work Accidents and occupational diseases

Protective health services to prevent addiction to harmful substances (such as smoking etc.)

(such as smoking etc.) Maternity

The persons in the need of medical care from another person In case of disaster, war and lock – out

(11)

PAYG system

Large deficits

- arrears

-

informality

low

active/passive

ratio in spite of

f

bl d

h

favourable demography

- early pension age

(12)

Statistical Data for Turkish Social

Security System

1. Population Covered by Social Security

Schemes

(13)

Population Covered by SSI

POPULATION COVERED BY

Ğ

EMEKLİ

POPULATION COVERED BY SSI'S (December 2008) (Thousand People)

SSK

(employed)

BAĞ-KUR

(self employed)

EMEKLİ

SANDIĞI

(civil servants)

TOTAL

1-ACTIVES

9.767.017

3.260.719 2.464.206

15.491.942

2 PASSIVES

4 625 719

1 795 063 1 605 589

2-PASSIVES

4.625.719

1.795.063 1.605.589

8.026.371

3-DEPENDENTS

18.259.259 9.377.960 5.263.145

32 900 364

32.900.364

TOTAL

32.651.995 14.433.742 9.332.940 56.418.677

Active/Passive Ratio

(14)

Financial Structure

SSI BUDGET (Million €)

2008 2009 BUDGET 2010 BUDGET 2011 BUDGET

Revenues

29 629

37 161

42 098

45 622

Revenues

29.629

37.161

42.098

45.622

Premium Revenues

24.029

26.236

29.828

32.360

Other

5 600

10 925

12 270

13 262

Other

5.600

10.925

12.270

13.262

Expenditures

41.039

46.578

52.255

57.880

Pension Payments

y

26.052

30.367

34.293

38.133

Health Expenditures

11.166

12.142

13.564

15.044

Other

3.822

4.070

4.397

4.702

Deficit

-11.411

-9.418

-10.157

-12.257

Budget Transfers

15.426

20.568

22.939

26.234

1 € = 2.27 TL