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Turkey Boosts Incentives for Private Pension Contributions

Turkey’s parliament passed a draft law allowing the government to make contributions to private pension plans.

The measure, which also widens tax breaks for pensions, needs the approval of President Abdullah Gul before becoming law. It stipulates that the government will match 25 percent of contributions to pension plans that pay in full only on retirement, according to the state-run Anatolia news agency.

The government’s contributions will be withdrawn if a client cancels membership before three years, Anatolia said. The law also exempts all pension contributors from the 15 percent withholding tax on financial gains. Previously, only savers who contributed for at least 10 years were exempt.

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