Glossary of Terms

Audit involving technical analysis based on insurance risks and statistics that control the appropriateness of the company's premium, reserve and profit share calculations made at the end of each year for the pension and insurance companies in relation to pension and insurance activities.

Participant who wishes to transfer their savings to another pension company, leave the system or retire will request a document from the current pension company, containing the details of the participant's entry date, transfer amount as of the date of arrangement, duration, etc. This document must be sent to the participant by the pension companies within ten working days following their accounting period.

A science that includes all of the calculation and forecasting methods for pricing and risk analysis related to insurance, long-term investments and pensions, requiring a very strong mathematical and statistical infrastructure that emerged in England in 1792 with the first implementation of life insurance.

A person who calculates provisions and investment returns, prepares all types of tariffs, tables and technical principles, makes technical and financial forecasts, determines possible risks, provides advice on measures designed to prevent their negative effects on actuarial science, investment, statistical, mathematical, financing and demographic issues using various scientific theories, and is registered in the Register maintained for the actuaries at the Ministry.

It is the management charge collected from the participant's accumulation during the period of non-payment, when there is no payment into the relevant account within three months of the due date.

Payments made by the participant or the sponsoring organization in excess of the regular contribution amount specified in the pension contract.

An agent is a person who has the right to mediate or act as a party on behalf of that business in contracts involving a business operation on a continuous basis, in a specific location or territory, based on a contract, without having a legal position in relation to the business, such as a commercial agent, commercial agent, sales officer or an employee of the business.

The total amount in the participant's individual pension account, representing contributions and returns excluding the state contributions and related revenues.

Annuity refers to the regular payments that begin immediately or after a certain period to be paid to the insured, policy owner or with certain conditions to the beneficiaries, for their lifetime or for a certain period, in return for lump-sum or periodic premiums paid, provided the insured is alive.

See "Annuity".

Annuity refers to the regular payments that begin immediately or after a certain period to be paid to the insured, policy owner or with certain conditions to the beneficiaries, for their lifetime or for a certain period, in return for lump-sum or periodic premiums paid, provided the insured is alive.

The ratio of the amount invested in the asset types by the portfolio managers to the total net asset of the fund.

The value derived by the valuation of the capital market instruments, money market instruments and transactions, futures and options, cash, precious metals, lease certificates, foreign exchange, deposits and other assets and transactions deemed appropriate by the Capital Markets Board in the fund, in accordance with the principles set forth in the Board Regulations and in the portfolio management contracts.

Index or indices used to objectively identify the target to be achieved by applying the portfolio management strategies and measuring the performance of the portfolio thus enabling the analyst to compare the performance of the portfolio.

The person or persons designated by the participant, whose identities are indicated in the contract to whom the payments are made in the event of the participant's death while the pension contract is in progress, without prejudice to the provisions of the Civil Code. (If the beneficiary has not been assigned in a contract or the assignment has been canceled afterwards, the beneficiaries are the legal inheritors of the participant. The participant may change the beneficiary during the term of the contract or cancel the process of assigning the beneficiary. The beneficiary is not a party to the pension contract.)

A regulatory public institution with administrative and financial autonomy that independently exercises its authority to ensure that the capital market operates in trust, openness and determination, and protects the rights and benefits of the depositors, that is, the investors.

Trainings organized by the Pension Monitoring Center to ensure the continuity of professional competence, knowledge and skills of licensed individual pension intermediaries.

In case the participant who has more than one contract wishes to use his / her pension right, the process of combining all contracts in a single account in order to be able to retire with the accounts related to the other contracts in the same or different company that he / she preferred the contract for which he / she has won the pension right.

The amount paid to the company for investment according to the pension contract.

The event of non-payment of contributions with respect to a pension agreement into a designated account within three months of its due date.

The Capital Markets Board approved custodian company that holds the assets in the pension mutual fund portfolio in safekeeping.

The amount of deductions determined to not exceed the fixed costs paid by the pension company to the Pension Monitoring Center with regard to the individual pension account, which can be deducted from the participant's individual pension account in the case of a period of non-payment in excess of one year.

A model based on the accumulations calculated on the basis of actuarial principles and estimated rates of return so that the aggregate accumulation to provide this retirement salary can be reached after the initial determination of the retirement pension to be received.

A model based on the accumulation of savings obtained as a result of the allocation of contributions by persons for a certain period and / or by law in a retirement account, not based on actuarial calculations, back to the account holders at the end of the period, either in a lump-sum or monthly.

Preparing a pension contract through the company's website, call center, or a call center authorized by the company, the website of the company authorized by the company, or other methods deemed appropriate by the Agency, without meeting face to face. 

Individuals, institutions and structures (banks, individual direct sales, corporate sales, agencies, brokers, call centers, the internet) that enable individual pension products to reach participant candidates.

The data issued by the companies to the Pension Monitoring Center to ensure the monitoring of the activities of the companies on a daily basis, their auditing, the consolidation of the transactions, the custody of the participant information, the informing of the public and the participants and the production of statistical output and the carrying out of functions.

A fee requested from the relevant participant or the sponsor organization at the time of participant's initial entry into the individual pension system, or at the time the participant enters into a pension contract with another company.

The form designed to provide information to the participant or the sponsor organization on the operations of the individual pension system, the contents of which is designated by the Ministry of Treasury and Finance.

An Electronic Plan Identification System established within the Pension Monitoring Center for the purpose of tracking retirement plans in an electronic environment.

Transfer of the authority to undertake operations with regard to the fund by the contributors to the founder in accordance with the fund by-laws and the duty of the founding company to manage the fund in accordance with the contract (by-laws) protecting the rights of the contributors.

The funding mix that the participant prefers from the funds offered under the pension plan and their distribution therein.

A connecting contract between the participant and the pension company, the custodian and the portfolio manager, regulating the management of the fund portfolio in accordance with the principles of fiduciary ownership and its management in accordance with the attorney agreement, containing the general terms of the transaction.

Provisions relating to fund administrative fees incurred to defray costs related to fund administrative fees including deductions not exceeding the maximum rates specified on a fund group basis, indicated in the Fund Bylaw.

A pension contract drawn up in connection with a group pension plan to which the pension company and the participant are the parties.

Technical principles that determine the application method of the pension group contract and the noncontributory group contract.

An advisory committee dedicated to setting policies on the individual pension system, recommending measures to be taken to implement these policies, and advising on legislative arrangements.

The multiple-choice examination conducted by the Pension Monitoring Center used to measure the professional knowledge and skills. Individuals who have the required qualifications in individual pension intermediaries may apply.

A real person who acts as an intermediary or as a party on behalf of the pension company for the pension contracts that pension companies offer to participants or to the sponsoring organization.

A document issued to demonstrate the adequacy of professional knowledge for individuals who have been successful in the Individual Pension Intermediaries Exam (e-BEAS) and who possess the other necessary qualifications for individual retirement intermediaries.

The Individual Pension System (IPS) is a individual pension system that provides an income to maintain living standards during retirement through the long-term investment of the savings people accrue during their active careers.

The account that holds the contributions paid for and on behalf of the participant pursuant to the pension contract, and all returns accruing for the participant from these contributions.

Payments of the participant or the sponsoring organization over the amount of the regular contribution stipulated in the contract, at the stage which the pension contract enters into force or in the course of the plan change, and which is to be paid for entry into the plan.

Istanbul Settlement and Custody Bank Inc.

A retirement option where all or some of the accumulations can be paid-out to the participants.

Total value derived by adding cash and fund receivables to the pension mutual funds portfolio value and subtracting the fund liabilities.

A pension contract signed between a sponsoring organization and the company for the benefit of the participant, based on an employment relationship in which the contributions are paid by the sponsoring organization in the name of the participant.

A license granted to legally established companies to set up a pension business and start their activities.

The real person whom an individual pension account is opened for and on behalf of pursuant to the pension contract.

Tools and methods (credit card, money order, cash, check, postal check, automatic payment order) used to remit the contribution shares to the company account.

Frequency of contribution payment (monthly, quarterly, semi-annual, annual).

The company established in accordance with the Individual Pension Savings and Investment System Law No. 4632 and licensed in the retirement branch established by this Law to operate in the individual pension system.

The pension contract that sets forth the procedures and principles on the opening of an individual pension account with the pension company, contribution payments to the account, investments of paid contributions to preferred funds, and payment of proceeds saved in the account to the beneficiaries, as well as the parties' other rights and obligations within this scope.

The form signed by parties other than the pension company and the individual pension intermediary, containing information on the pension plan, the funds offered as part of the plan, deductions, the contribution amounts, the parties to the pension contract, and the participant's investment preferences.

The total of the assets from the contributions acquired by the pension company and monitored in the individual pension accounts on behalf of the participants in accordance with the Pension Contract, for the management of the fund with respect to risk diversification and the principles of fiduciary property

The pension plan contains information on the funds offered to the participant by the pension company in the plan, contributions to be paid by the participant, entrance fees, administrative expense fees and fund expense fee total, additional administrative fees in the case of contribution holidays and on related calculations and other technical principles on the implementation of the pension contract.

The principles, procedures and all of the precedents relating to payments made by associations, foundations, pension funds, professional associations or other commercial companies that have made a made a commitment to their members or employees with respect to retirement or to their beneficiaries in the event of retirement, early separation, death or disability.

The loss of all or part of the insured's earning power at the end of a treatment due to an occupational accident or occupational disease.

The person who pays contribution on behalf of the participant.

A joint stock company that has obtained a certificate of authority from the Capital Markets Board by fulfilling the requirements specified in the capital market legislation specifically to undertake individual portfolio management activities.

A contract between the company and the portfolio manager, that is required to be approved by the Capital Markets Board, which contains the principles regarding the portfolio management service.

The portfolio management company that has obtained the portfolio management license from the Capital Markets Board and deemed qualified by the Board.

Retirement option offered by the pension company taking into account the participant's age, accumulation amount, other income and expenses, and the preferences for the payment period, payment amount and payback period in which the participant may withdraw his/her accumulation without leaving the system.

The monetary aggregate calculated by using the return ratios determined by the Ministry of Treasury and Finance, which does not contain a return commitment, and is solely of a predictive nature, is expected to be reached in a certain period with contributions by the participants or the sponsoring institution.

Based on the calendar year, the fee charged by the Capital Markets Board calculated at three one-hundred-thousandths of the net asset value of the fund on the last business day of each quarter and deposited in the special account of the Capital Market Board within ten days of the quarter end. In the event that the fund publicly offers its fund shares during the related calculation period, the fund is calculated taking into account the proportion of the number of days the fund shares are offered for sale to the number of days in the relevant quarter.

The amount committed by the participant or the sponsoring organization to pay on the dates indicated on the offer form, in accordance with the pension contract.

The form containing certain information on the portfolio, investment and management of pension mutual funds which must be kept available so that those who want to receive information about the fund can reach it at all times.

The form signed by parties other than the pension company and the individual pension intermediary, containing information on the pension plan, the funds offered as part of the plan, deductions, the contribution amounts, the parties to the pension contract, and the participant's investment preferences.

The form containing the financial projections and the retirement options of the participant, including remaining in the system, and the annuity plan, also combining all other retirement contracts, if any, and stipulating the requirement that the participant must also retire from all these other contracts.

Buying a security at the opening value of the transaction and selling it back at the closing value (purchase of the securities with the promise of resale).

The participant's right to withdraw from the contract within 2 months after signing the Pension Proposal Form or the approval of the proposal in the case of a distant sale.

An institution established for the purpose of realizing a social security system based on social insurance principles, effective, fair, easily accessible, from actuarial and financial aspects sustainable, with contemporary standards, that will secure individuals in terms of social insurance and general health insurance.

A legal person that pays contributions on behalf of the participant according to the noncontributory group contract.

The fund in which the accumulations of participants who have not proclaimed their fund distribution preferences is employed and portfolio parameters of which are determined by the Ministry.

The amount paid by the government to the participant's pension account, at the rate of 30% of the contributions paid on behalf of the participant to the individual pension account, excluding those paid by the employer. 

The total amount transferred to the fund after deduction of administrative expense fees from the contributions paid in accordance with the pension contract.

A form containing information such as deductions, benefits, etc. sent by the pension company to the participant or the relevant sponsoring entity requesting the account statement for transfer purposes.

A form signed by the participant or the relevant sponsoring organization requesting transfer of the contractual accumulation to another pension company and forwarded to the pension company to make the transfer.

In the noncontributory group contracts, transfer of the accumulations earned by the employee under the vesting program to individual or group individual contracts of the employee.

It is the value derived by dividing the net asset value of the pension mutual fund by the number of shares in circulation.

Vesting period is the period of time stated in the noncontributory group contract for the participant to become vested for the contributions paid by the sponsor organization and for all the returns thereon.

Income tax deduction made to the extent stipulated by the law from the returns at the stage that participants leave the system.

A form signed by the participant or sponsor organization and sent to the company, requesting a withdrawal.