: In order to increase national saving, the private pension reform was introduced in
June 2012 by Law Number 6327 and the legal changes that came in to force on 1 January
2013. The new system has a state contribution matching of 25 % of contributor premiums
built it and is limited to the annual gross minimum wage. Moreover, the maximum
administrative and fund management fees of private pension funds were reduced with the
reform. The tax deduction for employers was increased from 10% to 15% of the employee
salary. In the public pension scheme, fair adjustment in pension amounts was implemented in
January 2013. With the new pension adjustment system, pension amounts for pensioners who
retired in different years were aligned and nearly 1.7 million pensioners' pension amounts
were increased. Additionally, the definition of invalidity was extended in August 2013 (the
means-tested old-age pension scheme threshold was increased and the means-testing rules
were changed in 2013 with Law Number 6495.) This means that more poor elderly and
disabled citizens who have no social security can achieve a minimum income more easily.
The Social Assistance Law was changed with Law Number 6353. Due to this reform, social
security contributors can benefit from social assistance, provided that their household income
per capita is below the poverty threshold. A new means-tested survivor’s pension programme
was launched for survivors in 2012.