Transfer arrangements for BES receivables to banks

The regulation that allows all or part of the individual retirement system receivables to be transferred to banks has been published in the Official Gazette. The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has made a regulation that allows all or part of the receivables, excluding the state contribution originating from individual retirement (BES) contracts, to be transferred to banks. According to the regulation on the amendment of the regulation on the individual retirement system published in the Official Gazette, participants will be able to transfer all or part of their receivables, excluding the state contribution originating from BES contracts, to banks through a receivable transfer agreement, excluding agreements subject to any administrative and judicial demand such as precautions, seizures, bankruptcy, lien and similar measures regarding fund shares. Within this scope, the receivable transfer agreement will be terminated after the bank notifies the company through the retirement monitoring center that the amount subject to the receivable transfer agreement has been collected or the relevant credit debt has been closed. The bank may request to collect the remaining debt from the transferred receivable 30 days after the credit debt becomes due. In this case, the remaining debt amount will be paid to the bank by deducting it from the cash amount to be paid to the participant upon termination of the retirement contract. The application will come into effect after 6 months.