Accounting Procedures in Automatic Participation System and an Analysis of Teachers' Perspective on the System

Private Pension System which firstly comes into our lives and virtually began to register members on October 27,2003 has achieved a high growth since 2003. The system has had the biggest change since January 1,2017. On this date, 45 years old citizen of the Republic of Turkey in the public or private sector input into the system automatically performing employees. Thus, the Automatic Participation System (OKS) started. The reactions of the participants have been highly below the average. Leaving the system has happened in both the public and private sector. Although initially not enough, as time went on, serious increases occured in both savings and participants in the system through reforms. This system is a case of Private Pension practice. The purpose is to evaluate the funds (contributions) and make payments to the individual in a way to benefit from retirement. The funds provided here should be recorded regularly by the accounting department of the system and the funds evaluated with expert financiers should also be protected by keeping track of them. If registration procedures are not followed systematically deficits that will occur in time will make the system uncontrollable and the expected benefits will not occur. In the study, functioning, financing and financial highlights for evaluation and accounting practices of Private Pension System were mentioned and the perspectives of teachers who constitute an important population in our country were evaluated with a field research. In the study, the reasons of leaving the system have been determined and suitable solutions have been proposed. Since participants were not informed about the system before, they involved in the process without having information about funds. Therefore, the participants who were unaware of the interest -free funds left the system considering that their savings were used in interest-fund. Although state subsidy has been reacted positively by the participants, excluding the inflation rate from the process caused falling short of the expectations of persons. Automatic participation of the participants without getting their opinions has also disturbed them. At the end of the study, it has been determined that demographical characteristics such as age, marital status and gender have no significant relationship with membership to the system. It has been revealed that state subsidy, tax advantage, second pension choice, support for economising, having the opportunity of receiving savings collectively have a significant relationship with membership to the system.

Keywords

Private Pension System, Accounting Practices, State Subsidy, Social Security, Automatic Participation