Turkey president ratifies IMF-backed pension reform

Turkey's President Abdullah Gul ratified late on Wednesday an International Monetary Fund-backed pension reform that gradually raises the retirement age to 65.

Turkey president ratifies IMF-backed pension reform
The reform was published in the country's Official Gazette on Thursday. The law was a condition for the IMF Executive Board to approve Turkey's final loan tranche under a stand-by accord that expires on Saturday.

The law raises the retirement age gradually to reform a costly system which has been viewed as unsustainable because it encourages early retirement.

Under the overhaul of the system, the retirement age will gradually be raised to 65 from the current 48 years for men and 44 years for women. Retirement at 65 will only come into effect after 2036.

The reform, strongly opposed by trade unions, will go into effect from October, rather than August as previously planned.

The amendment, proposed by ruling AK Party deputies, cited the time required to prepare the infrastructure for the reformed system as the reason for the delay in implementation.


Reuters
Last Mod: 08 Mayıs 2008, 17:15
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