2009
2009
Progress Report 2009
[email protected] Electronic version of this document and reference data of selected statistics are available at
www.egm.org.tr/bes2009gr.htm
Contents
Foreword
7
1 Leaving a Year Behind
8
1.1 Developments in the World Economy
10
1.2 Developments in the Turkish Economy
11
1.3 Magnitudes Regarding Social Security in Turkey
13
2 Individual Pension System Data
16
2.1 General Overview
18
2.2 Contracts
20
2.3 Participants
26
2.4 Contributions
32
2.5 Pensioners
40
2.6 Intermediaries and e-BEAS
44
2.7 Pension Plans
48
3 Pension Mutual Funds
50
3.1 Worldwide Pension Funds
52
3.2 Pension Mutual Funds and Securities Mutual Funds in Turkey
53
3.3 Asset Allocation of Fund Groups
55
3.4 Total Net Asset Values and Average Returns of Fund Groups
57
3.5 Returns of Pension Mutual Funds
60
3.6 Risk Analysis of Pension Mutual Funds
64
3.7 Management Fees of Pension Mutual Funds
67
3.8 Pension Mutual Funds Data
68
4 Realizations in 2009, Sectoral Expectations for 2010
72
4.1 Realizations in 2009
74
4.2 Sectoral Expectations for 2010
75
5 Activities and Publications in the Individual Pension System
78
5.1 Amendments in the Legal Framework
80
5.2 Sectoral Activities
81
5.3 International Publications on Private Pension Systems
81
6 Selected Topics in the Individual Pension System
82
6.1 Analysis of Projected Accumulation and Withdrawal in Retirement
84
6.2 Selected Results of Surveys Conducted at PMC Contact Center
87
Tables and Charts
Yearly Growth in the World Economy 10 Fluctuations in the Consumer Price Index 11 Returns of Investment Instruments in 2009 12 Change in the number of Insured compared to
Last Year 13
Selected Unemployment Insurance Statistics 14 Development of Number of Contracts and
Amount of Contributions 18 Comparison of Total Invested Amount and
Accumulations 18
Development of Pension Funds of Participants
(TL) 19
Distribution of Contributions according to
Contracts’ Establishment Reason (TL) 19 Distribution of Payments 20 Distribution of Contracts in Force and
Terminated 20
Distribution of Contracts and Accumulations
according to Contract Types 20 Distribution of Contracts according to Regions 21
Vesting Years 21
Distribution of Contracts according to Payment
Period 21
Distribution of Terminated Contracts according
to Reason (Number) 22
Distribution of Contracts in Force and
Terminated 22
Distribution of Accumulations according to
Contracts’ Age (TL) 23
Distribution of Contracts according to Contracts’
Age 23
Termination Ratio of Contracts according to the Month of Enforcement (%) 24 Distribution of Contracts Terminated Voluntarily according to their Age at Termination 24
Distribution of Contracts Transferred to Another
Pension Company 25
Usage of Account Merging Right (Number) 25 Distribution of Participants according to Gender
and Ages 26
Gender and Education Distribution 26 Participants’ Fund Group Preferences according
to Age Groups (%) 27
Participants’ Fund Preferences per Fund Group
(Number) 27
Participants’ Fund Preferences according to
Contract Types per Fund Group 28 Accumulations of Participants according to Ages
(TL) 28
Participants’ Average Monthly Regular Contribution Planning to be Paid according to
Age Groups 29
Ratio of Participants to the Population according
to Provinces (%) 29
Distribution of Participants according to Regions
and Age Groups (%) 30
Distribution of Participants and Accumulations according to Income Levels (%) 30 Distribution of Participants according to Number of Contracts Owned (%) 31 Distribution of Participants according to Contract
Types (%) 31
Distribution of Contributions according to
Distribution Channel (%) 32 Distribution of Contributions according to
Distribution Channel and Payment Period (%) 32 Cumulative Change in Contributions According to Contribution Type (TL Million) 33 Average Monthly Regular Contribution according to Geographical Regions 33 Average Monthly Regular Contribution according
Average Monthly Regular Contribution according to Distribution Channel 34 Distribution of Contributions according to
Average Monthly Regular Contribution Intervals
(TL) 35
Distribution of Contributions according to
Payment Instrument (%) 35 Change in Average Annual Regular Contribution
(TL) 36
Change in Administrative Expenses Fee Ratio
(%) 36
Cumulative Change in Fees According to Fee
Types 37
Cumulative Amount of Withholding Tax 38 Change in Contributions Paid for Contracts in Force according to Years 38 Distribution of Contracts according to Payment
Ability (%) 39
Change in Number of Retired Participants 40 Development of Participants according to Date
they can Retire 40
Retirement in IPS 41
Ratio of Participants Staying in the System After
Retirement 41
Contributions and Net Returns of Retired
Participants (TL) 42
Retired Participants according to Withdrawal
Amount 42
Distribution of Retired Participants according to Time Spent in the Individual Pension System 43 Contracts according to Distribution Channel 44 Ratio of Contracts and Contributions according to Distribution Channel (%) 44 Ratio of Contracts and Contributions according to Age Groups of Intermediaries (%) 45 Ratio of Contracts and Terminated Contracts according to Age Groups of Intermediaries (%) 45
Distribution of e-BEAS Takers according to
Distribution Channel 46
Distribution of e-BEAS Takers and Success Rate according to Age Groups 46 Distribution of e-BEAS Takers’ Grades according to Distribution Channel (%) 47 The Progress of e-BEAS Takers’ Success Ratio 47
Pension Plans 48
Pension Funds’ Nominal Investment Rate of
Return in Selected OECD Countries 52 Yearly Variation of Pension Fund Assetsin OECD
Countries (2008/2007) 52
Consolidated Data of Mutual Funds as of
December 31, 2009 53
Growth of Pension Mutual Funds 53 Net Asset Value of Pension Mutual Funds
according to Fund Groups and their Growth
Rate in 2009 54
Average Term in Pension Mutual Funds and
Securities Mutual Funds 54 Consolidated Asset Allocation of Pension Mutual
Funds (%) 55
Variation of Pension Mutual Funds Portfolio
Allocation according to Previous Year 55 Asset Allocation of Flexible Funds (%) 56 Asset Allocation of Pension Mutual Funds in
2009 according to Founder (%) 56 Total Net Asset Values and Average Returns of
Fund Groups 57
Change of Net Asset Values of Fund Groups by
Years (2004-2009) 57
Change of Average Returns of Fund Groups in
2009 58
Change of Average Returns of Fund Groups from the Beginning of the Individual Pension
System 58
Net Asset Values of Pension Mutual Funds
Pension Mutual Funds that Outperformed their Benchmarks (Except Flexible Funds) 60 Data of Flexible Pension Mutual Funds 61 Returns of Pension Mutual Funds in 2009
according to Fund Groups and Founders 62 Returns of Funds and their Benchmarks in 2009 62 Net Asset Values of Pension Mutual Funds
according to Founder 63
Net Asset Values of Pension Mutual Funds according to Founder and their Growth Rate in
2009 63
Top 20 Pension Mutual Funds according to their
Sharpe Ratios 64
Pension Mutual Funds with Positive Alpha
Coefficient (Except International Funds) 65 Market Indexes Used for Fund Groups 66 Mean and Standard Deviation of Riskfree Daily
Returns 66
Development of Average Monthly Fund Management Fee Ratios according to Fund
Groups 67
Pension Mutual Funds Data 68 Periods of Accumulation and Programmed
Withdrawal 85
Alternatives in the Decumulation Phase 86
Causes of Withdrawals 87
Expectations in Entering the Individual Pension
System 88
Withdrawn Participants Consider Re-entrance 88 Usage of Tax Advantage for Withdrawn
Foreword
Completing its sixth year in 2009, the individual pension system has been in a rapid growth trend despite the recent financial crisis which also has affected our country. During this period when the savings have gained greater importance, the high growth rate achieved in this voluntary system and the total fund amount raised within the system exceeding TL 9 billion is notably important.
When 2009 year-end data of the individual pension system is compared to that of the preceding year, we note that the total fund value grew by 42% to TL 9 billion, annual contributions increased approximately by 29%, and total participants of the companies rose by 14% to 1 million 988 thousand. Furthermore, during this period, number of the active pension companies reached thirteen, with one more company being licensed. It is noteworthy that these results were achieved in spite of the financial crisis and the relative increase in the early withdrawals from the system. It should be noted that the marked increase in early withdrawals in 2009 was principally due to the global financial crisis and associated financial needs. On the other hand, the number of retirements from the system reached 1,907 as of the end of 2009.
It is targeted that the rapid growth of the system would go on in the upcoming years with a decrease in the percentage, and that the proportion of total fund value to gross domestic product, which is currently 1%, would rise to 10% in the 20th year of the system, i.e. year 2023.
For defined contribution systems such as individual pensions, major factors that affect pension savings may include contribution payment level, payment period and deductions from the system as well as investment performance. According to 2008 year-end and 2009 second quarterly data, Turkey achieved the highest nominal returns in private pension funds among the OECD countries. Besides the transparent and flexible structure of the individual pension system, this achievement is affected by the fact that participants largely opted for investments in fixed-return instruments. However, significant drops in interest rates and substantial transformation of the investment environment suggest that the forthcoming period would demand alternative investment instruments to achieve higher returns performance and the system should be linked with the real economy. In this connection, actions have been initiated to offer alternative investment instruments to participants by diversifying the investment funds available within the system.
On the other side, tax incentives offered by the public play an extremely important role in the improvement of systems such as individual pensions. While various nationwide sectoral polls manifest that the tax incentive offered at the time of contribution payments has been used more recently, they show that still two-thirds of participants do not make use of the incentive. It is essentially important to remind and advise participants of this incentive at every stage so that the participants avail themselves
of the opportunities offered to them, early withdrawals could be lowered, and a faster growth of the system is assured. Additionally, one of the most important factors of a healthy growth of the system is the high share of employer-contributed schemes. In this respect, I hope that plans put off due to the global crisis would be brought into effect in 2010, and a remarkable increase in contributions made by employers for their employees be accomplished.
As to the improvement of the legal framework, certain actions have been taken to provide a more effective functioning of the individual pension system in 2009. Within this framework, the Individual Pension Intermediaries Regulation was revised to enhance the standards applicable to the activities of individual pensions intermediaries. Furthermore, regulations were made regarding the e-plan system that allows for pension plans to be stored in electronic media, and probable accumulation charts presented to participants.
During 2010, which shows us that effects of the global crisis have started to settle down in the world and our country, and holds prospects of a certain level of improvement in economic activities, our Undersecretariat will continue its efforts to assure the growth and improvement of the individual pension system in conjunction with the stakeholders in the public and private sector.
By the way, I would like to thank everyone who has contributed to the Individual Pension System Progress Report 2009, which I am sure is regarded with interest and appreciation.
İbrahim Halil ÇANAKCI The Undersecretary of Treasury Republic of Turkey
Prime Ministry
The Undersecretariat of Treasury
For the system to
soar, tax incentive
must be reminded to
the participants on all
occasions.
Year Behind
Year Behind
Leaving a
Year Behind
Leaving a
Year Behind
1
1.1
Developments in the World
Economy
1.2
Developments in the Turkish
Economy
1.3
Magnitudes
Regarding
Social Security in
Turkey
for developing countries declined to 0.1% in developed countries and 5.2% in developing countries in 2009. Rates were 2.7% in the US, -1.7% in Japan, and 0.3% in Euro zone. IMF upped their 2010 inflation expectation to 1.3% for developed countries, and 6.2% for developing countries.
The economic crisis affecting the whole world and the consequent contraction of the worldwide trade volume brought about a decrease in employment and an increase in unemployment rates. Unemployment rate of 5.8% in the US in 2008 is expected to be 9.3% in 2009, while it is predicted to rise from 7.6% to 9.9% in the Euro Zone, and up to 5.4% from 4.0% in Japan. As for 2010, it is forecast that unemployment rates in these countries will further go up, and be as high as 10.1% in the US, 11.7% in the Euro zone, and 6.1% in Japan.
Oil prices, showing an upward trend in the second half of 2009
due to the economic recovery, rose up to USD 77.6 at the end of 2009, from USD 39 as of the end of 2008.
The negative outlook of the 2009 economic indicators and the slow recovery of markets caused central banks of some of the developing countries, namely, the US, Europe, United Kingdom and Japan, to avoid a change in interest rates. The FED kept interest rates at 0.25%, European Central Bank at 1%, Bank of England at 0.5% and Bank of Japan at 0.1%.
Breaking out in 2008 and having its effects felt all over the world, the global economic crisis persisted also in 2009, despite a reduction in its impact due to a number of extraordinary monetary and fiscal policy measures taken by the countries. Injection of liquidity into markets by Central Banks led to an accelerated economic recovery and a positive development of expectations particularly in developing countries.
While the economic stagnancy experienced at a global scale has resulted in shrinkage of the global economy, developed countries felt it more severely, but the recuperation was also quicker. Although most countries tended to grow towards the end of 2009, it is estimated that the global economy, having shrunk by 0.8%, will grow by 3.9% in 2010, with the prediction that developed countries will have relatively lower growth rates, as opposed to developing countries foreseen to display a faster growth curve.
In parallel with the shrinkage of the global economy, world trade volume declined by 12.3% in 2009. Despite the economic improvements in developing countries, the weaker growth trend in developed countries reduced the volume of exports to these countries. World trade volume is expected to grow by 5.8% in 2010.
2008 inflation rates of 3.4% for developed countries and 9.2%
Developments in the World
Economy
1.1
Yearly Growth in the World Economy
-1 0 1 2 3 4 5 6 2007 2008 2009 2010-EXPECTATION
Gaining momentum and affecting the whole world adversely during 2008, the global economic crisis continued its effects in 2009, though at a reduced level. While increasing public expenditures contributed to growth, the declining private sector investment demand led to both a rise in unemployment rates and shrinkage of growth. Growing by 0.9% in 2008, Turkish economy contracted by 14.5% in the first quarter of 2009, 7.7% in the second, 2.9% in the third quarter and grew by 6% in the fourth quarter, which totals to an annual shrinking of 4.7%. While State Planning Organization estimates a 3.5% growth rate for 2010, the World Bank’s estimate is a lower 3.3%. (State Planning Organization Main Economic Indicators, World Bank Global Economic Prospects 2010)
Inflation rate targeted as 7.5% for 2009 started rising in January 2009, and tax adjustments made in the third quarter in order to achieve public fiscal balance caused domestic demand to rise and consumer durables prices to decline. Consequently, the inflation rate was 5.93% for consumer prices index, and 6.53% for producer prices index as of the end of 2009. Targeted inflation rate was announced as 6.9% (consumer price index) for 2010. (State Planning Organization, 2010 Annual Program, TCMB Inflation Report 2010-1)
2009 budget expenditure was TL 267 billion, and budget revenues were TL 215 billion. 2009 central government budget deficit reached TL 52 billion by a rise of 199.5% from the preceding year. (Ministry of Finance, Central Government Budget Report)
Developments in the Turkish
Economy
1.2
In 2009, exports were down to USD 102.2 billion by a decline of 22.6% from 2008, while imports were USD 140.8 billion by a decline of 30.3%. During the same period, foreign trade deficit dropped from USD 69.9 billion down to USD 38.6 billion by a decline of 44.8%. Export/import ratio was 72.6% in 2009. Current account balance deficit decreased from USD 41.9 billion in 2008 to USD 13.9 billion in January–December 2009. (Turkstat, Foreign Trade Statistics, December 2009)
Stock of domestic public debt increased from TL 274.8 billion at the end of 2008 to TL 330 billion in 2009. As of the end of 2009, TL 315.9 billion of the stock of domestic public debt consisted of bonds, and TL 14 billion consisted of bills. Average maturity period, which was 31.9 months as of the end of 2008, went up to 35.3 months at the end of 2009. In December, the compound interest rate generated in discounted Treasury auctions in TL was 9%, while average compound interest rate for discounted public debt in TL was 11.6% in 2009. (Undersecretariat of Treasury, 2009 Domestic Public Debt Statistics)
Net inflow of direct international investments in 2009 decreased to USD 7.6 billion by a decline of 58.4% from the preceding year. During this period, USD 1,6 billion of direct inflow of international investments originated from electricity, gas and water sector, and USD 1,6 billion from the manufacturing industry sector. (Undersecretariat of Treasury, Bulletin of Direct International Investments Data January 2010)
Fluctuations in the Consumer Price Index (%)
6.53 5.53 5.08 5.27 5.33 5.39 5.73 5.24 6.13 7.89 7.73 9.50 0 2 4 6 8 10 12 14 January February M ar ch
April May June July
August Sept ember October No vember December 2007 2008 2009 Ratio (%) Source: Turkstat
Returns of Investment Instruments in 2009
-20 0 20 40 60 80 100 Return (% ) ISE-100 IndexKYD Eurobond Bond Indexes EUR-TL KYD Whole Bond Index (TL) KYD Type B Fund Index
01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009 Residents’ total portfolio as of November 2009 reached TL 605,4
billion by a rise of 13.2% from the preceding year. 47.6% of this portfolio was composed of TL deposits, and 22.9% was composed of foreign currency deposits. During the same period, non-residents’ portfolio total was USD 79.5 billion. 60.5% of non-residents’ portfolio total, which increased by 58% from the 2008 year-end, consists of investments in stocks. (State Planning Organization, Developments in Financial Markets December 2009)
During late 2009, the Monetary Policy Board decelerated their interest rate discounts due to improvements in global risk perceptions and normalization trend in financial markets. Central Bank reduced borrowing interest rate from 15% in 2008 year-end to 6.5% in November 2009. (TCMB, Inflation Report 2010-1)
It is planned that the moderate economic recovery seen during late 2009 and flexible budgetary practices intended to relieve
effects of the crisis be continued along with macroeconomic policies and targets to be implemented in 2010. It is forecast that employment level would rise to 21.3 million persons, subject to growth of investments through cooperation of public and private sectors, but the unemployment rate would rise up to 14.6% from 14% in 2009. Tax load, inclusive of social security liabilities, calculated proportioning tax and other financial obligations to GDP is expected to rise from 24% to 26.2% in 2010, and central government budget is expected to yield an approximate deficit of TL 50 billion. The expectation that exports would be around USD 107.5 billion, and imports would rise up to USD 153.0, with a greater increase than imports, will cause foreign trade balance to yield a deficit in 2010. (State Planning Organization, Medium-Term Program 2010-2012)
Magnitudes Regarding Social
Security in Turkey
1.3
Source: SSI Statistics
Change in the number of Insured compared to Last Year
-18 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 Months Change (% ) 4/a 4/b 4/c 01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009
Monthly change in the number of compulsorily insured during 2009 is as follows. Effects of the crisis on global economy, which were especially
felt severely in the first 9 months of 2009 in our country, added to the long standing imbalances in macro data regarding social security.
While the imbalances often had structural roots in the past, importance of actuarial and financial aspects grew due to the shrinking economy and rising unemployment rates in this period. Due to the declining number of the insured and the drop in collection of premiums, social security premium revenues decreased, as a consequence of which social security deficits reached some TL 28.7 billion, and transfers from the budget TL 52.6 billion. Last year, these figures were TL 25.9 billion and TL 35.0 billion, respectively.
By the end of 2009, population of Turkey was 72,561,312, population under social security coverage was 58,348,616, total number of active insured persons was 15,143,220 and number of passive insured persons was 8,488,985. 64% of the active insured are subject to 4/a (formerly SSK), 21% to 4/b (formerly BAG-KUR), and 15% to 4/c (formerly the Pension Fund for Civil Servants). 58% of the passive insured are subject to 4/a, 23% to 4/b, and 19% to 4/c. The active insured decreased by 0.8% as compared to the previous year-end, and the passive insured increased by 5.4%.
The proportion of the population under the coverage of social
security to the total population reduced to 80% from 83.6. While the active/passive ratio, calculated by dividing number of active insured persons by the number of retired persons, was 1.90 in 2008, it further declined to 1.78 in 2009.
Total premium revenues of the Social Security Institution in 2009 were TL 54.6 billion, including restructuring. During this period, TL 38.1 billion was collected from those covered by 4/a, TL 5.1 billion from 4/b, and TL 11.5 billion from 4/c. On the other hand, a pensions payout of TL 67.4 billion was made under the Social Security Institution (SSI). Pension payout of TL 38.4 billion was made to the retired under the coverage of 4/a, TL 10.8 billion to the retired under 4/b, and TL 18.3 billion to the retired under 4/c.
Another indicator of the economic crisis has been the compensations made from the unemployment insurance. Applications for unemployment insurance, which were at high levels by April, started to decline to a certain extent as from May. Beneficiaries of the unemployment insurance raised to its highest level of 317 thousand 766 in April, and gradually dropped thereafter.
As of the end of 2009, assets of the Unemployment Insurance Fund reached TL 42.1 billion. Recorded as TL 38.4 billion at the end of 2008, the fund achieved an annual growth of 9.6%. At the same time, under the provisional article 6 of the Law No. 4447,
TL 1.3 billion was transferred from the fund to the Treasury’s budget for investments under Southeastern Anatolia Project retrospectively for 2008, and TL 4.1 billion was transferred for 2009.
As part of measures to reduce unemployment, an adjustment was made to the provisions of Article 50 by the Law No. 5921, which provides that insurance premiums of those beneficiaries of unemployment benefits who are recruited under the
principles laid down by the Law should be covered partially by the unemployment fund for unclaimed unemployment periods. This implementation took effect on October 1, 2009.
Moreover, the same law provides that employer’s shares of insurance premiums’ (calculated taking the lower limit of earnings as basis for premiums) of those who were recruited and had been actively working in addition to the insured reported in premium and service documents of April 2009 shall be covered from the unemployment insurance fund for six months, except
for the insured recorded in premium and service documents submitted to SGK within the three-month period preceding the date of recruitment by December 31, 2009.
Article 3 of the Law empowers the Undersecretariat of Treasury to cover part of insurance premiums, up to a hundred percent of employer’s shares, for employment to be achieved subject to investments encouraged under resolutions on public assistance in investments. Council of Ministers has been authorised to
adjust the duration of implementation, coverage ratio and scope of the amount to be covered by the Treasury, based on the sector, size and location of the investment. The Council of Ministers, in their resolution no. 2009/15199, decided that for large-scale investments as well as investments supported on regional basis, employer’s share of insurance premiums to be paid for employees employed additionally shall be covered by the Treasury for 2 to 7 years depending on the region of investments.
Law No. 5838 of February 18, 2009 extended the duration foreseen for short-time working from 3 to 6 months, exclusively for applications made for short-time working in 2008 and 2009, raised the short-time working allowance by 50%, and provides that payments made as short working payments shall not be deducted from the duration of unemployment allowance determined at the beginning.
Source: Compiled from Unemployment Insurance Fund Bulletins.
Selected Unemployment Insurance Statistics
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Number of Peopl e 0 20 40 60 80 100 120 TL M illi on People Claiming
Unemployment Insurance People Receiving RegularUnemployment Insurance Benefits Amount of Unemployment Insurance Benefits Paid
Pension
System Data
Pension
Individual
Pension
System Data
Individual
Pension
System Data
2
2.1
General Overview
2.2
Contracts
2.3
Participants
2.4
Contributions
2.5
Pensioners
2.6
Intermediares and e-BEAS
2.7
Pension Plans
General Overview
2.1
2009 Year-end
Participants
1,987,940
Funds (mio €)
4,211
Intermediaries
15,666
Pension Companies
13
Development of Number of Contracts and Amount of Contributions
G1
Total amount of invested contributions and total accumulations in 2009 are compared. Amount of contributions invested (TL 6,869,992,691) until December 31, 2009 reached TL 9,097,436,467 (Return rate should be interpreted together with
Comparison of Total Invested Amount and Accumulations
G2
the internal rate of return on investments. Direct comparison with other investment instruments may not give accurate results.)
As of the end of 2009, 2,203,886 contracts are in force. The number of participants has grown around 14% with respect to last year, approaching 2 million. Accumulated funds have grown by 43%, exceeding € 4.2 billion, and number of pension companies reached 13 with Deniz Emeklilik ve Hayat A.Ş. commencing this year. Moreover, number of retirees increased rapidly and around € 29 million has been paid as pensions. 1,900,000 2,000,000 2,100,000 2,200,000 2,300,000 2,400,000 01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009 Number 5,250 5,500 5,750 6,000 6,250 6,500 6,750 7,000 7,250 TL Mil lion Number of Contracts
Total Amount of Contributions (TL Million)
5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009 TL M illion
Total Invested Amount (TL) Accumulations of Participants (TL)
Distribution of Contributions according to
Contracts’ Establishment Reason (TL)
G4
Transfer of Accumulations in Life Insurance to the Individual Pension System Transfer of Accumulations in Provident Funds to the Individual Pension System* 343,954,157 4.8% 12,635,368 0.2%
New Entry to the System
6,745,418,037 95.0%
As of 2009 year-end, distribution of total amount of contributions for the contracts in force is analyzed according to establishment reason of the contracts.
5 percent of the contributions entered the system through “Transfer of Accumulations in Life Insurance to the Individual Pension System”. While TL 280,195,361 of this amount was transferred at establishment of a new contract, the remaining amount is transferred to existing pension contracts. * These include funds from associations, foundations, provident funds and other organizations with retirement provisions. Development of “Total Amount of Funds” invested by the
pension companies, in 2009. Funds controlled by Deniz Emeklilik ve Hayat A.Ş. (TL 11,874,815), Ergoİsviçre Emeklilik
Development of Pension Funds of Participants (TL)
0 200 400 600 800 1,000 1,200 1,400 1,800 1,600 2,000 01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009 Total Fund Amount of Parti cipants (TL M illi on)
Aegon Emeklilik ve Hayat A.Ş. Allianz Hayat ve Emeklilik A.Ş. Anadolu Hayat Emeklilik A.Ş. Avivasa Emeklilik ve Hayat A.Ş. Deniz Emeklilik ve Hayat A.Ş. Ergoİsviçre Emeklilik ve Hayat A.Ş. Finans Emeklilik ve Hayat A.Ş. Fortis Emeklilik ve Hayat A.Ş. Garanti Emeklilik ve Hayat A.Ş. Groupama Emeklilik A.Ş. Ing Emeklilik A.Ş. Vakıf Emeklilik A.Ş. Yapı Kredi Emeklilik A.Ş.
G3
ve Hayat A.Ş. (TL 14,042,704) and Finans Emeklilik ve Hayat A.Ş. (TL 16,942,825) can not be followed in the graph due to the small amounts.
Contracts
2.2
Distribution of contracts that are in force as of 2009 year-end are shown in the following graphs, according to their various properties.
Distribution of Contracts and Accumulations according to
Contract Types
Group Individual Contracts 414,066 18.8% Noncontributory Group Contracts 72,554 3.3% Individual Pension Contracts 1,717,266 77.9% Group Individual Contracts 1,694,358,329 18.6% Noncontributory Group Contracts 324,057,260 3.6% Individual Pension Contracts 7,079,020,877 77.8%Distribution of contracts in force according to their types as of 2009 year-end.
Distribution of the total amount of accumulations for contracts in force according to contract types as of 2009 year-end.
G8-9
Distribution of Payments (TL)
Entrance Fee (Paid) 76,526,863 1.1% Administrative Expenses Fee 232,014,870 3.2% Total Amount of Contributions Invested 6,869,992,691 95.7%Until the end of 2009, TL 6,869,992,691 has been invested after deduction of TL 232,014,870 for administrative expenses fee from TL 7,102,007,561, the total amount collected from contracts in force. Apart from contributions, an amount of TL 76,526,863 was paid as entrance fee for contracts in force.
Distribution of Payments
Distribution of Contracts in Force and Terminated
G6-7
Terminated TL 3,100,726,271 30% In Force TL 7,102,007,561 70%
The total contribution amount of TL 10,202,733,832 for all the contracts written as of 2009 year-end are analyzed in terms of enforcement.
Terminated 1,124,528 34% In Force 2,203,886 66%
All contracts written as of 2009 year-end are classified as in force and terminated.
Approximately 3.5% of the participants save by
means of their employees. Of the TL 324 million
accumulation, 40% enjoy immediate vesting.
27% of participants are entitled to the employer
contributions in 5 years.
Vesting Years
G11
As of 2009 year-end, noncontributory group contracts in force are analyzed according to their vesting years (waiting period for deserving the total amount of contributions paid by sponsor companies and their profit).
5 years 27.4% 2 years 0.5% 3 years 23.6% 4 years 7.3% Immediate Vesting 40.1% 1 year 1.0%
Yenisi
Yazı rengi
Quarterly 80,365 4% Semiannual 20,062 1% Annual 69,982 3% Monthly 2,033,477 92%Distribution of contracts in force as of 2009 year-end are analyzed according to “Payment Period”.
Distribution of Contracts
according to Payment Period
G12
Distribution of contracts in force as of 2009 year-end is analyzed according to “Regions”. The data about “Regions” for the contracts are gathered according to the provinces where
Distribution of Contracts according to Regions
G10
the participants reside. 9,746 contracts with participants living abroad are not shown on the graph.
Rat io (% ) 50 40 30 20 10 0 Ratio of Contracts
as of 2009 Year-end (%) Ratio of Total Amount of Contributionsas of 2009 Year-end (%)
Marmara Central
Anatolia Aegean MediterraneanThe Black SeaThe SoutheastAnatolia AnatoliaEast
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2004 2005 2006 2007 2008 2009 Nu mber of Contr acts Terminated In Force
Distribution of Contracts in Force and Terminated
G14
All contracts that came in force in the corresponding year are analyzed according to status of being in force or terminated, as of 2009 year-end. Terminations include cancellations by company, death/disability, transfer of pension account to another pension company, merging of contracts, retirement and voluntary opt outs.
Distribution of Terminated Contracts according to
Reason (Number)
Opt Outs
Transfer of Pension Account to another Pension Company
948,640 118,779 10.56% Consolidation of Contracts 20,294 1.80% 84.36% Cancellation by Company 30,747 2.73% Death/Disability 4,039 0.36% Retirement 2,029 0.18%
G13
Distribution of 1,124,528 terminated contracts out of3,328,414 that were written until the end of 2009, according to “Termination Reasons”.
The ratio of terminated contracts to the written contracts is 33.8 percent. 4.2 percent of this ratio is “Transfer of Pension Account to Another Pension Company” and “Consolidation of Contracts”, 0.9 percent is “Cancellation by Company”, 0.2 is other involuntary reasons (retirement, death, disability). The termination ratio of voluntary opt outs of contracts entered the system with new contract establishment is 28.5 percent.
Distribution of Accumulations according to Contracts’ Age (TL)
0 500 1,000 1,500 2,000 2,500 Less Than1 Year 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years
Elapsed Time in the Individual Pension System
Ac cumula tions of P articipants ( TL Mi llion)
G15
As of 2009 year-end, distribution of total accumulations (TL 9,097,436,467) for the contracts in force is analyzed according to the completed age of the contracts.
As of 2009 year-end, contracts in force is analyzed according to their completed age in the system. Average age of the contracts in force as of 2009 year-end is calculated to be 1.8 years.
Distribution of Contracts according to Contracts’ Age
G16
0 100,000 200,000 300,000 400,000 500,000 600,000 Less Than
1 Year 1 Year 2 YearsElapsed Time in IPS3 Years 4 Years 5 Years 6 Years
Number of Contr
Number of contracts entered the system in the specified month with a new contract establishment and the ratio of voluntary withdrawals as of 2009 year-end.
Distribution of contracts, entered the system with a new contract establishment and terminated voluntarily, according to their age at termination, as of 2009 year-end. Age of the contract shows
Distribution of Contracts Terminated Voluntarily
according to their Age at Termination
G18
Termination Ratio of Contracts according to the
Month of Enforcement (%)
G17
the number of full months from the date of coming in force until termination. 0 10 20 30 40 50 60 10.2003 12.2003 02.2004 04.2004 06.2004 08.2004 10.2004 12.2004 02.2005 .200504 06.2005 08.2005 10.2005 12.2005 02.2006 04.2006 06.2006 08.2006 10.2006 12.2006 02.2007 04.2007 06.2007 08.2007 10.2007 12.2007 02.2008 04.2008 06.2008 08.2008 10.2008 12.2008 02.2009 04.2009 06.2009 08.2009 10.2009 12.2009 Month Termin ation R atio (%) 0 10 20 30 40 50 60 70 Number o f Contr acts Enter ed the S ystem ( Thousand)
Termination Ratio (%) Number of Contracts
0 5 10 15 20 25 30 35 40 45 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72
Age of Contract at Termination (Months)
Number of Contr
acts (
Distribution of merged contracts in the same or different companies is analyzed as of 2009 year-end, according to the date they merged.
Usage of Account Merging Right (Number)
0 500 1,000 1,500 2,000 2,500 3,000 Nu mber of Contr acts Same Company Different Company 08.2008 09.2008 10.2008 11.2008 12.2008 01.2009 02.2009 03.2009 .200904 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 12.2009 Date of Merge
G20
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 [0-1) [1-2.5) [2.5-5) [5-7.5) [7.5-10) [10-15) [15-20) [20-25) [25-50) [50-100) [100-250) [250 +)Transfer Amount Interval (TL Thousand)
Number of Cont
racts T
ransf
err
ed
Distribution of Contracts Transferred to Another Pension Company
G19
The right to transfer the contract to another
company after one year, has been used ca. 114
thousand times since the commencement of the
system.
Participants
2.3
Distribution of Participants according to Gender and Ages
Yaş 0 100 Population (Thousand) Age 100 200 200 300 300 400 400 500 500 600 600 700 700 56 54 52 50 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18
Male Population Outside of IPS Male Population Within IPS
Female Population Outside of IPS Female Population Within IPS
Distribution of participants of contracts in force in the population as of 2009 year-end, according to their “Gender” and “Ages”. Population of Turkey is taken from the results of Address Based Population Registration System, year 2009. The penetration
G21
Gender and Education Distribution
Distribution of participants of contracts in force as of 2009 year-end according to their “Gyear-ender”.
Distribution of participants of the contracts in force as of 2009 year-end according to their “Level of Education”.
G22-23
Female 790,505 40% Male 1,197,435 60% Other-Undefined 32.5% Master's Degree 2.4% Vocational Schools-Associate Degree 0.5% University-Bachelor's Degree 26.9% High School23.6% Primary-Secondary School 14.0%rate of IPS to the 18-56 age general population is 4.73 percent. Average age of population within IPS is 36.0 in female and 36.4 in male participants.
Participants’ Fund Group Preferences according to Age Groups (%)
Distribution of the accumulations (TL 9,097,436,467) for the contracts in force, analyzed in terms of “Participants’ Age Groups” and “Fund Groups” as of 2009 year-end.
G24
Participants’ Fund Preferences per Fund Group (Number)
Participants’ fund preferences are shown based on the fund groups. On average, 2.45 fund types were bought per contract. As of December 31, 2009 flexible fund group has 24 percent stocks, 56 percent gov’t bonds and bills and 13 percent reverse
G25
0 25 0, 00 0 50 0, 00 0 75 0, 00 0 1, 00 0, 00 0 1, 25 0, 00 0 1, 50 0, 00 0 1, 75 0, 00 0 2, 00 0, 00 0 2, 25 0, 00 0 International Gov't Bonds and Bills (FX) Stocks Balanced Flexible Liquid Gov't Bonds and Bills (TL)Number of Contracts 0 25 50 75 100 25 and under Age 25-34 Age 35-44 Age 45-55 56 and over Particip ants' Age Gr oups Ratio (%)
Gov't Bonds and Bills (TL) Stocks
Liquid Gov't Bonds and Bills (FX)
International Flexible
Balanced
repo in its portfolio. Balanced fund group has 31 percent stocks, 54 percent gov’t bonds and bills and 8 percent reverse repo in its portfolio.
Accumulations of Participants according to Ages (TL)
Accumulation amounts of participants in contracts that are still in force as of 2009 year-end are analyzed according to participants’ age. 0 2,000 4,000 6,000 8,000 10,000 12,000 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 Age of Participant Ac cumulation Amount ( TL) Average amount of Accumulations First and Third Quarters and Median Accumulations
G27
Participants’ fund preferences according to contract typesare shown based on the fund groups. As of 2009 year-end accumulations amount of noncontributory group contracts is TL 324 million, group individual group contracts is TL 1,694 million
Participants’ Fund Preferences according to
Contract Types per Fund Group
G26
0 25 50 75 100 Individual Pension Contracts Group Individual Contracts Noncontributory Group Contracts Type of Contr act Ratio (%)
Gov't Bonds and Bills (TL) Liquid Flexible Balanced
Stocks Gov't Bonds and Bills (FX) International
and individual pension contracts is TL 7,079 million. On average, in noncontributory group contracts 2.96, in group individual group contracts 2.37 and in individual pension contracts 2.48 fund groups were bought per contract.
Ratio of number of participants of contracts in force as of 2009 year-end to the general population between ages 18-56 in their home city is depicted in the map.
As of 2009 year-end, the average monthly regular contributions planning to be paid for contracts in force are analyzed in terms of “Participants’ Age Groups”. The average monthly regular contribution planning to be paid for contracts in force as of 2009
0 50 100 150 200 250 Av er age Mont hly R egu la r Contribu tion ( TL)
25 and under Age 25-34 Age 35-44 Age 45-55 56 and over
Participants’ Average Monthly Regular Contribution
Planning to be Paid according to Age Groups
G28
Ratio of Participants to the Population according to Provinces (%)
Samsun Giresun Gümüşhane Trabzon Rize Artvin Ardahan Kars Erzurum Erzincan Tunceli Elazığ Malatya Adıyaman Şanlıurfa Bingöl Muş Ağrı Van Bitlis Şırnak Hakkari Siirt Batman Diyarbakır Mardin Iğdır Bayburt Ordu Tokat Sivas Yozgat Kırşehir Nevşehir Kayseri Kahramanmaraş Niğde Aksaray Osmaniye Gaziantep Kilis Adana Hatay Konya Karaman Antalya Mersin Ankara Kırıkkale Bolu Düzce Sakarya Bilecik Eskişehir Kütahya Balıkesir Manisa İzmir Aydın Muğla Denizli Uşak Afyon Isparta Burdur Bursa Yalova Sinop Kastamonu Bartın Karabük Zonguldak İstanbul Kırkareli Edirne Çanakkale Çankırı Çorum Amasya Kocaeli Tekirdağ 3.01 - 5.00% 2.01 - 3.00% 1.01 - 2.00% 0.00 - 1.00% 5.01 - 9.50%
G29
year-end is TL 137 and average monthly regular contribution paid in 2009 is TL 148. The area of the bubble is proportional to number of contracts in force as of 2009 year-end.Distribution of Participants according to Regions
and Age Groups (%)
0 25 50 75 100
Marmara Central Anatolia Aegean The Mediterranean The Black Sea Southeast Anatolia East Anatolia Ratio of Participants (%) 25 and under Age 25-34 Age 35-44 Age 45-55 56 and over
G30
Distribution of participants of contracts in force are analyzed according to “Regions” and “Age Groups” as of 2009 year-end. The data about “Regions” are gathered according to the
provinces where the participants reside. 9,605 participants who are living abroad are not shown on the graph.
Distribution of Participants and Accumulations
according to Income Levels (%)
59.0% 2.2% 6GMW < Income ≤ 10GMW 9.9% 10GMW < Income 13.2% 2GMW < Income ≤ 3GMW 3GMW < Income ≤ 6GMW GMW < Income ≤ 2GMW Income ≤ GMW 0.1% 15.6% 60.1% 3.9% 6GMW < Income ≤ 10GMW 9.8% 10GMW < Income 5.4% 2GMW < Income ≤ 3GMW 3GMW < Income ≤ 6GMW GMW < Income ≤ 2GMW Income ≤ AGMW 0.9% 19.9% GMW = Monthly Gross Minimum Wage
G31-32
Distribution of participants of contracts in force according to their “Level of Income” as of 2009 year-end.
Distribution of fund amount of contracts in force according to “Participants Level of Income” as of 2009 year-end.
Analysis includes data of 18.9 percent of the participants whose income data are available. “Income” indicates the “Net Income” declared by the participant at the signing of the contract.
Distribution of Participants according to Number of
Contracts Owned (%)
1 Contract 84.2% 3 or More Contracts 3.4% 2 Contracts 12.4%G33
Distribution of participants according to number of contracts they hold as of 2009 year-end. 84.2 percent of participants have only one contract in the system, while 12.4 percent have two contracts and 3.4 percent have at least three contracts.Distribution of Participants according to Contract Types (%)
% 0,31 15.89% 78.27% 1.80% 0.08% 3.04% 0.60% Individual Pension
Contracts Group IndividualContracts
Noncontributory Group Contracts
0.31%
Distribution of participants according to type of contracts they own as of 2009 year-end. Areas of intersection refer to participants who have more than one type of contract. 78.3 percent of participants have only individual pension contracts, while participants with only group individual contract is 15.9 percent and participants with only noncontributory group contracts are 0.6 percent. 0.31 percent of participants have all three types of contracts. 83 percent (3.35%/4.04%) of participants with noncontributory group contracts also have group individual contracts, while 15 percent (0.60%/4.04%) have only noncontributory group contracts.
G34
83% of the employees saving through employer
plans also save in their group individual contracts.
Contributions
2.4
Distribution of Contributions according to Distribution Channel (%)
0 10 20 30 40 50 60 70 80 90 100 2004 2005 2006 2007 2008 2009
Total Amount of Contributions (%)
Individual Direct Sales Corporate Sales Agent Bank Other
G35
Distribution of the total amount of contributions (TL 10,202,733,832) paid to companies as of 2009 year-end in terms of “Distribution Channel” is comparatively analyzed
according to the contribution payment year. “Others” include “Call Center” and “Broker” channels.
Distribution of Contributions according to Distribution Channel
and Payment Period (%)
G36
Distribution of the total amount of contributions (TL 7,102,007,561) for the contracts in force as of 2009 year-end in terms of “Payment Period”, in the detail of “Distribution
Channel”. “Others” include “Call Center” and “Broker” channels. Contracts with monthly payment period are providing 82 percent of all contributions.
100
0 25 50 75
Individual Direct Sales Corporate Sales Agent
Bank Other
Contributions (%)
Cumulative Change in Contributions According to
Contribution Type (TL Million)
G37
Average Monthly Regular Contribution according to
Geographical Regions
G38
The average monthly regular contributions paid for the contracts in force according to “Regions” are analyzed as of 2009 year-end and compared to the previous year. The data about “Regions” for the contracts are established according to the provinces where the participants reside. The average monthly
regular contribution paid for contracts in force as of 2009 year-end is observed to be TL 148 in 2009 and TL 133 in 2008. In addition to the ones analyzed, there are 9,746 contracts with participants living abroad.
0 20 40 60 80 100 120 140 160 180 Av er age Mont hly R egular Contribution P aid ( TL) 0 5 10 15 20 25 30 35 40 45 50 Ratio of Contr acts as of 2009 Y ear -end (%) Average Monthly
Regular Contribution Paid (TL) in 2008
Average Monthly
Regular Contribution Paid (TL) in 2009
Ratio of Contracts as of 2009 Year-end (%)
Marmara Central
Anatolia Aegean MediterraneanThe Black SeaThe SoutheastAnatolia AnatoliaEast
Region
Additional Contribution Initial Contribution (Transfer of Accumulations from Outer Systems*)
Initial Contribution
(New Entry to System) Regular Contribution
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Amount ( TL Mi llion) Month 10 .2 00 3 12 .2 00 3 03 .2 00 4 06 .2 00 4 09 .2 00 4 12 .2 00 4 03 .2 00 5 06 .2 00 5 09 .2 00 5 12 .2 00 5 03 .2 00 6 06 .2 00 6 09 .2 00 6 12 .2 00 6 03 .2 00 7 06 .2 00 7 09 .2 00 7 12 .2 00 7 03 .2 00 8 06 .2 00 8 09 .2 00 8 12 .2 00 8 03 .2 00 9 06 .2 00 9 09 .2 00 9 12 .2 00 9
Distribution of contributions paid to system are analyzed according to “Contribution Type” as of 2009 year-end.
* Transfer of accumulations from outer systems includes transfer of accumulations in life insurance and in provident funds to the individual pension system. Provident funds include funds from associations, foundations and other organizations with retirement provisions.
Average Monthly Regular Contribution according to Payment Period
G39
Average Monthly Regular Contribution according to
Distribution Channel
The average monthly regular contributions paid for the contracts in force according to “Payment Period” are analyzed as of 2009 year-end. An analysis of the current payment periods of contracts as of 2009 year-end indicates that 92 percent preferred monthly, 4 percent preferred quarterly, 1
The average monthly regular contributions paid for the contracts in force according to “Distribution Channel” are analyzed as of 2009 year-end. “Others” include “Call Center” and “Broker” channels. For “Individual Direct Sales” contracts that are in
percent preferred semiannual and 3 percent preferred annual payment periods. The average monthly regular contribution paid for contracts that preferred monthly payment period and in force as of 2009 year-end is observed to be TL 141 in 2009 and TL 129 in 2008.
force as of 2009 year-end, which account for 64 percent of all contributions, average monthly regular contribution paid is observed to be TL 150 in 2009 and TL 135 in 2008. 0 50 100 150 200 250 300
Monthly Quarterly Semiannual Annual
Payment Period Av er ag e M on th ly R eg ul ar C on tr ib ut io n ( TL
) Average Monthly Regular
Contribution Paid (TL) in 2008 Average Monthly RegularContribution Paid (TL) in 2009
0 30 60 90 120 150 180 Individual Direct
Sales CorporateSales Agent Bank Other
Av er age Mont hly R egular Contribution P aid in 2009 ( TL) 0 10 20 30 40 50 60 70 Ratio of Cont ributions a s of 2009 Y ear -end (%) Average Monthly Regular Contribution Paid in 2009 (TL) Ratio of Contributions as of 2009 Year-end (%)
G40
Distribution of Contributions according to Average Monthly
Regular Contribution Intervals (TL)
G41
0.01 - 50.00 386,919,644 5.4% 250.01+ 2,081,410,265 29.3% 150.01 - 250.00 1,501,644,172 21.1% 50.01 - 100.00 1,246,816,485 17.6% 100.01 - 150.00 1,885,216,995 26.5%
Distribution of Contributions according to Payment Instrument (%)
G42
Distribution of the total amount of contributions paid in 2009 for the contracts in force as of 2009 year-end in terms of “Payment Instrument”. Analysis includes data of 97.7 percent of the contributions paid in 2009 whose “Payment Instrument” data are available. Cheque/Postal Cheque contributions are not shown on the graph because the amount is too small.
Bank Transfer/ Cash 21% Credit Card 54% Automatic Payment 25%
Distribution of paid contributions of contracts in force (TL 7,102,007,561) is analyzed according to contracts’ prevailing “Average Monthly Regular Contribution Interval” planning to be paid as of 2009 year-end.
Change in Administrative Expenses Fee Ratio (%)
G44
Change in Average Annual Regular Contribution (TL)
G43
2004 Average contribution escalated by mid-year inflation rates.
A ver age An nual R egular Contributi on (TL) 2004 2005 2006 2007 2008 2009 0 200 400 600 800 1,000 1,200
Ratio of Administrative Expenses Fee
in the Related Month (%) Ratio of Cumulative AdministrativeExpenses Fee (%)
Fee/Nontr ansf err ed P ayments (%) Month 6.0 5.5 5.0 4.5 4.0 3.5 3.0 12 .2 00 3 04 .2 00 4 08 .2 00 4 12 .2 00 4 04 .2 00 5 08 .2 00 5 12 .2 00 5 04 .2 00 6 08 .2 00 6 12 .2 00 6 04 .2 00 7 08 .2 00 7 12 .2 00 7 04 .2 00 8 08 .2 00 8 12 .2 00 8 04 .2 00 9 08 .2 00 9 12 .2 00 9
Annual regular contributions paid by participants for contracts that are in force as of corresponding year-end.
The graph shows the administrative expenses fee for contracts, deducted off all the payments except the transferred amounts as of 2009 year-end. Ratio of cumulative administrative expenses fee is calculated as 3.99 percent as of 2009 year-end.
Cumulative Change in Fees According to Fee Types
G45
0 200 400 600 800 1,000 1,200 Month Amount ( TL Mi llion) 10 .2 00 3 12 .2 00 3 03 .2 00 4 06 .2 00 4 09 .2 00 4 12 .2 00 4 03 .2 00 5 06 .2 00 5 09 .2 00 5 12 .2 00 5 03 .2 00 6 06 .2 00 6 09 .2 00 6 12 .2 00 6 03 .2 00 7 06 .2 00 7 09 .2 00 7 12 .2 00 7 03 .2 00 8 06 .2 00 8 09 .2 00 8 12 .2 00 8 03 .2 00 9 06 .2 00 9 09 .2 00 9 12 .2 00 9Administrative Expenses Fee Entrance Fee (Paid at Termination) Entrance Fee (Paid at Entrance) Fund Management Fee Administrative Expenses Fee
41% 8% 20% 30% 1% 38% 14% 34% 12% 1% 42% 32% 12% 14% 1% 38% 35% 16% 10% 1%
Distribution of fees (TL 1,082,518,489) deducted from contracts are analyzed according to “Fee Type” as of 2009 year-end. “Other fees”, which amount to TL 533,991 as of December 31st,
2009, are not shown on the graph. The pie charts illustrate cumulative distribution of fee types as of year-ends.
Cumulative Amount of Withholding Tax
G46
0 50 100 150 200 250 300 350 400 12.2003 03.2004 06.2004 09.2004 12.2004 03.2005 06.2005 09.2005 12.2005 03.2006 06.2006 09.2006 12.2006 03.2007 06.2007 09.2007 12.2007 03.2008 06.2008 09.2008 12.2008 03.2009 06.2009 09.2009 12.2009 Month Amount of Wi thhol di ng Tax (TL Mil lion)Cumulative change in amount of withholding tax of voluntarily opted out contracts are analyzed, as of 2009 year-end.
Change in Contributions Paid for Contracts in Force
according to Years
G47
0 500 1,000 1,500 2,000 2,500 3,000 2004 2005 2006 2007 2008 2009 Total Amount of Contri buti ons (TL M illi on)Total amount of contributions for the relevant year escalated by mid-year inflation rates to 2009.
Total amount of contributions paid for contracts that are in force as of 2009 year-end are analyzed according to payment years. Contributions paid during the years are escalated by mid-year inflation rates until 2009.
Participants, that entered the system in or before October, 2009 and preferred monthly payment period, paid at least one months’ regular payment but skipped at least three months’ contrubution and are still in the system are analyzed according
Distribution of Contracts according to Payment Ability (%)
G48
0 5 10 15 20 25 30 35 40 45 50 [0,6) [6,12) [12,18) [18,24) [24,30) [30,36) [36,42) [42,48) [48,54) [54,60) [60,66) [66,72) [72,78) Average Age of the Contract (Month)
Av
er
age R
atio (%)
to contracts’ age. While calculating the payment ability, period (months) from the last contribution to December 31st, 2009, were taken into consideration.
2.5
Pensioners
Development of Participants according to Date they can Retire
G50
Development of “Number of Retired Participants” as of 2009 year-end. Retired participants include participants, who used retirement right but preferred to stay in the system after retirement and took programmed withdrawal together with the participants who opted out the system as retired and took a lump sum payment.
Participants of contracts in force as of 2009 year-end, who were eligible for retirement but not retired yet and who will be eligible until the end of 2019 are analyzed, according to date they can retire.
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Number of Parti cipants El igi bl e for R eti remen t 03.2010 09.2010 03.2011 09.2011 03.2012 09.2012 03.2013 09.2013 03.2014 09.2014 03.2015 09.2015 03.2016 09.2016 03.2017 09.2017 03.2018 09.2018 03.2019 09.2019 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Total Number Eli gi bl e
Eligible for Retirement in the
Related Month Total Number Eligible (Cumulative)
Change in Number of Retired Participants
G49
12.2009 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 09.2007 10.2007 11.2007 12.2007 01.2008 02.2008 03.2008 04.2008 05.2008 06.2008 07.2008 08.2008 09.2008 10.2008 11.2008 12.2008 01.2009 02.2009 03.2009 04.2009 05.2009 06.2009 07.2009 08.2009 09.2009 10.2009 11.2009 Number of Retir ed P arti ci pants
Retirement in IPS
Until 31.12.2009, 1,909 participants have exercised their right of retirement and
are entitled to access their accumulation as programmed or lump sum withdrawal.
These participants comprise approximately 56% of all entitled to retirement. 44%
of participants entitled to retirement chose not to exercise their right and they
continue to save in the individual pension system.
As set by the regulation, retirement from the individual pension system requires
turning the age of 56 and having contributed in the system for 10 years. The first
retirees comprise individuals, who transferred their funds from life insurance or
provident funds, associations, foundations or other organizations with retirement
provisions.
Contributions either transferred from outside systems or paid in the individual
pension system total to TL 46.5 million, and within the approximately 3-year period
these contributions stayed in the system, they have appreciated 35% after-tax,
totaling to TL 62.9 million.
When pension payments to individuals are considered, mean accumulation is
approximately TL 33,000 and the median around TL 21,500, while 75% of pensioners
received TL 15,600 or more.
0 1 2 3 4 5 6 7 8 9 10 Date of Payment Amount ( TL Mi llion) 0 10 20 30 40 50 60 70 80 90 100 Amount (TL Thousand)Total Amount Paid to Retired First and Third Quarters and Median of Amount Paid to Retired
10.2007 12.2007 02.2008 04.2008 06.2008 08.2008 10.2008 12.2008 02.2009 04.2009 06.2009 08.2009 10.2009 12.2009
Ratio of Participants Staying in the System After Retirement
Distribution of participants of contracts in force as of 2009 year-end according to the “Usage of Retirement Right”. Retired participants include participants, who used retirement right but preferred to stay in the system after retirement and took programmed withdrawal together with the participants who opted out the system as retired and took a lump sum payment.
G52
Staying in the System after Eligibility 44% Exercised their Retirement Option 56%G51
Retired Participants according to Withdrawal Amount
Distribution of retired as of 2009 year-end according to the “Total Amount Paid to Retired”. Retired participants include participants, who used retirement right but preferred to stay in
G54
Total Amounts
Paid to Retired (TL) Number ofRetired Participants
0 2 4 6 8 10 12 14 16 18 20 [0,25) [25,50) [50,75) [75,100) [100,250) [250,1,020]
Retirement Payment Intervals (TL Thousand)
Tot al Amou nt P aid t o R et ired (TL Mi llion) 0 200 400 600 800 1,000 1,200 Number of R et ired P art icipa nts
the system after retirement and took programmed withdrawals together with the participants who opted out the system as retired and took a lump sum payment.
Contributions and Net Returns of Retired Participants (TL)
Contributions and net amount of return of participants, who have opted out from the system as retired as of 2009 year-end, are analyzed. Of the participants who are qualified for retirement,
G53
0 10 20 30 40 50 60 2007 2008 2009 Year of Retirement Amount ( TL Mi llion)Net Amount of Return
from the System Total ContributionsPaid
56 retired in 2007, 312 retired in 2008 and 1,539 retired in 2009 and took their accumulations.
Distribution of retired participants, who have opted out of the individual pension system (IPS) or prefered to stay in the system and took programmed withdrawals, according to time spent in the individual pension system. Even if the participant has transferred accumulations in life insurance or provident funds
Distribution of Retired Participants according to
Time Spent in the Individual Pension System
G55
0 100 200 300 400 500 600 700 800 900 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 M o n th in IP S Number of Participants
to the system and has fulfilled the conditions for retirement, she must also stay in the system for at least 36 months. The calculation of this period starts from the date of the first transfer. Provident funds include funds from associations, foundations and other organizations with retirement provisions.
Intermediaries and e-BEAS
2.6
To be licensed as an individual pension intermediary, candidates need to take and pass the Individual Pension Intermediaries’ Exam (e-BEAS), which examines the candidates’ professional knowledge and skills. It is executed as multiple choice, carried out electronically over the internet. Each candidate is asked a unique and randomly selected set of 100 questions taken out of a question pool that is periodically updated according to legislative and economic changes. Candidates need to have 65
or more correct answers to pass the exam. As prescribed in the regulation about Individual Pension Intermediaries dated August 29, 2009, candidates answer questions in the following topics: Basic Business and Economics, Social Security System, Finance and Financial Instruments, Legislation of General and Life Insurance, Knowledge of Fundamental Human Relations and Marketing, Legislation of Individual Pension System and Relevant Tax Laws.
Ratio of Contracts and Contributions according to
Distribution Channel (%)
Ratio of “Intermediaries”, “Contracts” and “Contributions” for contracts in force according to “Distribution Channel” as of 2009 year-end. “Others” include “Call Center” and “Broker” channels.
G57
0 10 20 30 40 50 60 70 IndividualDirect Sales CorporateSales
Agent Bank Others
Ratio (%)
Ratio of Intermediaries (%) Ratio of Contracts (%) Ratio of Contributions (%)
Contracts according to Distribution Channel
Ratio of 2,203,886 contracts in force according to “Distribution Channel” as of 2009 year-end. “Others” include “Call Center” and “Broker” channels.
G56
Others 23,079 1.0% Bank 371,516 16.9% Agent 227,231 10.3%Individual Direct Sales
1,426,952 64.7%
Corporate Sales
155,108 7.0%
0 10 20 30 40 50
Age 21-25 Age 26-30 Age 31-35 Age 36-40 Age 41-50 51 and over
Intermediaries' Age Groups
Rat io of C ontr acts (%) 0 5 10 15 20 25 30 35 40 Termin at ion R atio of Contr acts (%) Ratio of
Contracts (%) Termination Ratio ofContracts (%)
Ratio of Contracts and Terminated Contracts according to
Age Groups of Intermediaries (%)
G59
Analysis of “Ratio of Contracts” that are still in force, and “Terminated Contracts” according to “Age Groups of Intermediaries” as of 2009 year-end.
Ratio of Contracts and Contributions according to
Age Groups of Intermediaries (%)
G58
Ratio of “Intermediaries”, “Contracts” and “Contributions” for contracts in force according to “Intermediaries’ Age Groups” as of 2009 year-end. 50 40 30 20 10 0 R a ti o (% )
Intermediaries’ Age Groups
Age 21-25 Age 26-30 Age 31-35 Age 36-40 Age 41-50 51 and over
0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 Number Number of
Candidates Number ofSuccessful Candidates
Age 21-25 20 and
under Age 26-30 Age 31-35 Age 36-40 51 and over
Intermediaries' Age Groups
Age 41-50
Distribution of e-BEAS Takers and Success Rate
according to Age Groups
G61
44,702 e-BEAS takers and 26,470 successful ones until the end of 2009, have been analyzed according to “Age Groups” during exam date. 0 2,500 5,000 7,500 10,000 12,500 2004 2005 2006 2007 2008 2009 Number of Candi dates
e-BEAS Taking Year Individual Direct
Sales Agent Bank Independent Applications Other
Distribution of e-BEAS Takers according to Distribution Channel
G60
Analysis of 44,702 candidates who took e-BEAS until the end of 2009 according to “Distribution Channel”. “Others” include “Corporate Sales”, “Call Center” and “Broker” channels.
50 55 60 65 70 75 80 85 90 09.2004 12.2004 03.2005 06.2005 09.2005 12.2005 03.2006 06.2006 09.2006 12.2006 03.2007 06.2007 09.2007 12.2007 03.2008 06.2008 09.2008 12.2008 03.2009 06.2009 09.2009 12.2009 Month R ati o of Suc cess (%) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Number of Candi dates
Ratio of Success (%) Number of Candidates
The Progress of e-BEAS Takers’ Success Ratio
The progress of cumulative success ratio of e-BEAS takers until the end of 2009 has been analyzed. Cumulative success ratio is observed to be 59.21 percent as of 2009 year-end.
0 2 4 6 8 10 12 14 16 18 0-39 40-49 50-59 60-64 65-69 70-79 80-89 90-100 Grade Interval R ati o of e-BEA S Tak ers (% ) Individual
Direct Sales Agent Bank
Distribution of e-BEAS Takers’ Grades according to
Distribution Channel (%)
A group of 41,900 e-BEAS takers whose Distribution Channel was Individual Direct Sales, Agent or Bank during exam date were analyzed according to “Grade Intervals”. Beside these
G62
G63
channels, 2,802 candidates from other distribution channels received an average grade of 62 on e-BEAS.Pension Plans
2.7
Company Name Plan No Plan Name Total Contributions (TL) Number of Contracts Company Name Plan No Plan Name Total Contributions (TL) Number of Contracts
Aegon Emeklilik ve Ha
yat A.Ş.
2 Individual Pension Plan - 2 10,650,380 11,865
Gar
anti Emeklilik v
e Ha
yat A.Ş.
1 Regular Investment Pension Plan 84,797,016 22,190
3 Small and Medium Size Enterprises Group Pension Plan 3,903,312 10,893 4 Balanced Professional Investment Pension Plan 37,920,865 5,152
19 Individual Security Pension Plan 24,689,563 23,470 7 Group Pension Plan
