Turkey: Selected Issues
IMF Staff Country Reports, February 3, 2017
Source details
- Canonical URL
- Turkey: Selected Issues
Other formats
Bibliographic details
- Published: February 3, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475574289.002
Summary and purpose
- Examines the new private pension automatic enrollment provisions in Turkey.
- Compares the newly enacted automatic enrollment provisions to the current voluntary private pension system.
- Highlights advantages of automatic enrollment and identifies weaknesses that risk endangering the reform in the long term.
Key findings
- The newly enacted automatic enrollment provisions have several advantages relative to the current voluntary private pension system.
- The hybrid input-output model for the reform is incomplete without:
- The establishment of a public procurement board.
- Periodic auctioning of pension services.
- Employers are unlikely to be more skilled than individuals in choosing pension plans for their workers.
Risks and weaknesses
- Several weaknesses in the design of the automatic enrollment provisions could endanger the reform in the long term.
- The absence of a procurement board and periodic auctions undermines the completeness of the hybrid input-output model.
IMF staff recommendations
- Complete the hybrid input-output model along the lines recommended by the World Bank by:
- Establishing a procurement board for pension services for undecided participants.
- Introducing periodic auctioning of pension services to complement the procurement board.
Content in this bundle
- Country Report