The Change and Transformation of Social Insurance System of Turkey

Abstract

Turkish social insurance system based on the contributory principle finds its basis in the Ottoman era. During classical period of Ottoman Empire, similar practices of old age pension, survivors'benefit, disability and employment injury benefits were seen in Jannissaries and Guilds. After Tanzimat, the insurance protection for the civil servants was provided by pension funds. The fund application for each public institution, was continued until the codification of Law on Retirement Fund No.5434. The unification of different social security schemes was realized by the foundation of this Fund. After WW2, in Turkey it can be seen the foundation of modern social insurance system. Until 1983, all of the working class protected under the social insurance system. However, the presentation of different regimes for each sectors, gave harm to social justice and the investment failure of insurance funds in profitable investments caused decreasement of funds. With the frequently application premium amnesties and the removing of the age limit to be a prerequisite of a pension the national insurance model, that constitued newly, faced with the danger of collapse. The contribution of social security reforms that made in 1999 and 2008, will be seen in medium and long term.