SOCIAL SECURITY INSTITUTION LAW Law No Date of Enactment Published in Official Gazette Published on Code : : : : 5502 16/5/2006 Date: 20/5/2006 No : 26173 Group: 5 Volume: 45 Page: PART ONE Purpose, Definitions, Organisation and Responsibilities Purpose and Organisation ARTICLE 1– The purpose of this Law is to regulate the procedures and principles concerning the establishment, organisation, responsibilities, and authorities of Social Security Institution. In order to apply the provisions of this Law and other relevant laws that define responsibilities and authorities of the Institution, Social Security Institution was established as a public entity which is autonomous in administrative and financial terms and subject to the provisions of private law where the provisions of this Law are not applicable. The Institution is an affiliated body of Ministry of Labour and Social Security. The central location of the Institution is in Ankara. The institution is subject to Inspection of the Court of Accounts. Definitions ARTICLE 2– For the purpose of this Law, the following shall mean; a) Ministry: Ministry of Labour and Social Security, b) Minister: Minister of Labour and Social Security, c) Institution: Social Security Institution, ç) General Board: General Board of Social Security Institution, d) Administrative Board: Administrative Board of Social Security Institution, e) Presidency: Presidency of Social Security Institution, f) President: President of Social Security Institution, g) General Directors: General Director of Social Insurances, General Director of Universal Healthcare Insurance, General Director of Non-Contributory Payments, General Director of Service Provision. Purpose and responsibilities of the Institution ARTICLE 3- The main purpose of the Institution is to ensure an efficient, fair, easyto-access, as well as actuarially and financially sustainable social security system based on the fundamental social insurance principles, with modern standards. Responsibilities of the Institution are as follows: a) To implement social security policies considering the national development strategy, policies and annual implementation programmes, and to further develop these policies. b) To inform real and legal entities concerning their rights and responsibilities and to facilitate their use of rights and fulfilment of responsibilities. c) To follow international developments in social security related issues, to cooperate with the European Union and international organisations, to execute the operations with respect to social security agreements to be concluded with foreign countries and to implement international agreements enacted accordingly. 1/29 ç) To ensure coordination and cooperation between public institutions in the field of social security. d) To carry outtasks appointed to the Institution in this Law and in other Laws. PART TWO Bodies of the Institution and their Responsibilities Bodies of the Institution ARTICLE 4- The Institution comprises the following bodies: a) General Board. b) Administrative Board. c) Presidency. The organisational structure of the Institution is demonstrated in annexed table (I). Composition and Responsibilities of the General Board and procedures for its Meetings ARTICLE 5- Under the presidency of the Minister or the person to be assigned by the Minister, the General Board consists of; a) One representative from the Court of Accounts, Ministry of National Defence, Ministry of Interior, Ministry of Finance, Ministry of Health, Ministry of Industry and Commerce, Undersecretariat for State Planning Organisation, Undersecretariat for Treasury and Foreign Trade, Administration for Disabled People, Directorate General of Social Assistance and Solidarity, Directorate General of Turkish Employment Organisation, and a representative of the academic people to be appointed by the Board of Higher Education, b) Two lecturers from the field of Labour Law and / or Social Insurance Law to be appointed by the Minister, c) President, General Directors, President of Strategy Development ,President of Guidance and Inspection, Head of Actuaries and Fund Management Department, ç) 9 representatives appointed by the first three confederations of employers’ organisations with the highest number in proportion to total number of workers working in the enterprises affiliated to member employer’s union d) 9 representatives appointed by the first three confederations of trade unions with the highest number of members in proportion to their number of members, e) 9 representatives appointed by the first three confederations of civil servants’ unions with the highest number of members in proportion to their number of members, f) 9 representatives appointed by the first three organisations among the top professional organisations as established by the law that applies to self-employed people in proportion to their number of members g) 9 representatives appointed by the first three organisations for those who are entitled for (pension) or income from the Institution in proportion to their number of members, h) one representative, each from the top professionalpublic organisations that are not covered under paragraphs (ç), (d), (e) and (f). The responsibilities of the General Board are as follows: a) To provide opinion and recommendations on the social security policies and their implementation. b) To provide an opinion based on the evaluation of the Institutions budget and balance sheets, activity reports, performance programmes, medium and long-term incomeexpenditure balance, the most recent actuarial accounting results with regards to different branches of insurance. 2/29 c) To evaluate the results achieved by the Institution in comparison with the objectives defined in the performance programmes of the Institution and to present an opinion on the performance objectives for the next term / period. ç) To elect the main and reserve (members of the Administrative Board through an election process using the method specified in paragraph five. General Board shall meet once in every three years. Date of the meeting and meeting agenda shall be sent to the relevant institutions and organisations one month prior to the meeting the latest. The quorum of the meting is the absolute majority of the total number of members. If absolute majority cannot be achieved in the first meeting, absolute majority shall not be expected in the second meeting which should be held one month later. General Board could be asked to convene for an extraordinary meeting by the Minister or by one-third of the total number of members. General Board decisions shall be sent to the members within two weeks the latest and these decisions are given priority by the Institution. In the General Board, representatives specified in paragraph (ç) elect the employers’ representative; representatives specified in paragraph (d) elect the employee’s representative; representatives specified in paragraph (e) elect the civil servants’ representative; representatives specified in paragraph (f) elect the representative of the self-employed; representatives specified in paragraph (g) elect the representative of pensioners, for the Administrative Board. For each group one original and one reserve member is elected. Elections are carried out using the secret vote – open count method and final decisions shall be made according to the majority of votes. Elections shall be conducted in accordance with the procedures and principles specified in the regulation to be issued by the Ministry. Secretarial operations of the General Board shall be executed by the Presidency. Expenses related to the work of the General Board shall be covered from the allocation to be included in the budget of the Institution. Procedures and principles concerning the convening and operation of the General Board, appointment of the representatives and other issues shall be regulated according to a Regulation to be issued by the Ministry upon the recommendation of the Institution. Composition and Members of the Administrative Board ARTICLE 6- Administrative Board is a decision making body and holdsthe highest decision, authority and responsibility of the Institution. Administrative Board is composed of 10 members including; a) President, b) A Deputy President appointed in accordance with a joint decree upon the recommendation of the President, c) One representative from the Ministry of Labour and Social Security appointed in accordance with a joint decree upon the recommendation of the Minister of Labour and Social Security, ç) One representative from the Ministry of Finance appointed in accordance with a joint ordinance upon the recommendation of the Minister of Finance, d) One representative from the Undersecretariat of Treasury appointed in accordance with a joint ordinance upon the recommendation of the Minister responsible for the Undersecretariat of Treasury, e) One employer’s representative f) One employee’s representative, g) One civil servant’s representative, h) One member to represent self-employed, ı) One member to represent those with income or wages, 3/29 President also chairs the Administrative Board. In case of absence of the President, the acting President shall preside. In case of absence of the deputy president who is also the member of the Administrative Board, one of the other deputies appointed by the President shall join the Administrative Board. Administrative Board shall convene at least once a week with a minimum of six members. Decisions are made by the majority of members attending to the meeting. In case of equal votes, President’s side is considered as majority. If deemed necessary, Administrative Board could be called for an extraordinary meeting upon the request of the Minister or six members. Membership of Administrative Board, except for the President and Deputy President, is for three years. The membership of those who do not attend three consecutive meetings or a total of six meetings within a year without an valid excuse; those who have lost the conditions to be elected or appointed as a member of the Administrative Board; and those who have been elected but later on proved to be ineligible is terminated automatically. The status of those who do not attend three consecutive meetings or a total of six meetings within a year without and valid excuse is identified according to Administrative Board decision and notified to the Ministry. Those members whose Administrative Board membership expires before their term of duty for any reason shall be replaced by reserve members. In this way, these new members complete the term of duty/tenure of those they have replaced. Members whose term of duty is expired shall hold their position until the new members are appointed or elected. For those appointed members whose Administrative Board Membership expires, a new member is appointed following the same procedures in not later than one month to complete the remaining term of duty. Should those appointed members of the Administrative Board whose duty is expired, apply to their former institution in thirty days, they are appointed to a cadre appropriate to their vested rights within no later than one month by the competent authority provided that they. Their financial rights in relation with their Administrative Board membership remain until the appointment is realised. Except for the President and Deputy President, all other Administrative Board members appointed from other institutions are renounced from their institutions. Those who will be appointed or elected for Administrative Board membership shall comply with the conditions specified in sub-paragraphs (1), (4), (5), (6), and (7) of paragraph (A) in Article 48 of Civil Servants’ Law No. 657. However, for those Administrative Board members who are selected through an election process, conditions specified in paragraph (B) of Article 68 of Civil Servants’ Law No. 657 does not apply. Those members who have been subject to a criminal case for criminal offenses specified in sub-paragraph (5) of paragraph (A) in Article 48 of Civil Servants’ Law No. 657 and considered to have an unfavourable effect when remained in their position may be suspended by the Minister as a precautionary measure. Relevant provisions of Civil Servants’ Law No. 657 shall apply to suspended members. These temporarily available memberships are filled in by reservemembers rather than elected memberswith the condition of not exceeding suspended member’s serving period until the members suspended due to precautionary measures regain their position. For the vacant positions of the appointed members, new members are appointed by the competent authority. Head of the Administrative Board and members who participate in the meetings are paid a monthly salary equal to the amount of payment made to the head of administrative board and members of state economic enterprises, in accordance with Article 34 of Decree Law 399 dated 22/1/1990. Responsibilities of the Administrative Board ARTICLE 7- Responsibilities of the Administrative Board are as follows: 4/29 a) To conclude the Institution budget, revenue-cost tables/statements, transfers within the Institution budget among departments, additional and extraordinary appropriation requests of these departments. b) To evaluate the reports concerning actuarial accounts to be prepared in accordance with the insurance branches of the Institution, to follow the three-monthly/quarterly and annual financial balance, to decide on the necessary measures and to get the actuarial account reports that would be submitted to the General Board audited/inspected/examined by an independent organisation if deemed necessary. c) To decide on the establishment of departments under General Directorates and Strategy Development Presidency, as well as social security centres within the provincial organisation and to submit this decision for the approval of the Minister. ç) To conclude the regulations to be issued by the Institution. d) To decide on any kind of leasing contract, as well as any kind of leasing, sale, procurement, transfer, barter, construction, alienation of immovable property, civil work and other works that has a value more than five hundred thousand New Turkish Liras on the condition that this amount shall be increased every year in accordance with the revaluation rate as defined according to Tax Procedure Law No. 213. e) To define the procedures and principles concerning additional payments, bonuses and overtime premiums to be paid to the Institution staff. f) Should the interest of the Institution be concerned, to decide on the cancellation of rights and claims up to the limit specified in that year’s central administration budget law; to decide on the solution of disputes, except for premiums and claims arising from premiums, through an agreement or arbitration process without a court case or an execution proceeding; and to decide on the solution of court cases or execution proceedings conducted on behalf of or against the Institution through an agreement or arbitration process, on peace, acceptance, renunciation, and utilisation of legal instruments. g) To conclude the performance goals, indicators and programme, as well as service quality standards. h) To identify the minimum amount of obligations/credits that constitutes the basis for the announcement of employers with premium debt. ı) To decide on the realisation of operations related to the collection of Institutions claims, and collection of claims whose accruement and collection responsibility has been given to the Institution in accordance with other laws by obtaining services from public institutions responsible for the collection and monitoring of public revenues, and to submit this decision for Minister’s approval. i) To decide on the employment of lawyers via attorney agreement for the court cases and execution proceedings regarding the Institution, employment of local or domestic experts through service procurement for tasks that require specific qualifications and are of temporary nature, to determine the relevant contract conditions and the fees to be paid to lawyers. j) To carry out other tasks as specified in the laws. Principles and procedures of the Administrative Boards as well as the issues regarding the implementation of Article 6 and 7 of this Law shall be regulated by a regulation to be issued by Administrative Board decision and the approval of the Minister. PART THREE Organisation of the Presidency Organisational structure ARTICLE 8- The organisational structure of the Presidency comprises a central and a provincial organisation. 5/29 Central Organisation MADDE 9- Central organisation of the Presidency is composed of main service units, consultancy units and auxiliary service units. President ARTICLE 10- The President, being the top manager of the Presidency, is responsible for presidential activities and operations of those under his supervision to the Administrative Board. Roles, responsibilities, and authorities of the President are as follows: a) To manage the Institution in accordance with the Constitution, laws, national development plan, annual implementation plans, and policies and strategies defined by the Council of Ministers. b) To develop policy and strategies on topics that fall under the scope of Institution’s responsibility; to define annual goals and objectives accordingly; to define performance criteria; to prepare Presidency budget; to carry out necessary legal and administrative regulatory work; to coordinate, monitor and evaluate implementation in accordance with the goals and performance criteria. c) To inspect activities and operations of the Institution, to review management systems, to supervise the effectiveness of institutional structure and management processes and to improve management. ç) To ensure the implementation of Administrative Board decisions. d) To represent the Institution before the judicial and administrative authorities, as well as legal and real persons. e) To define institutional ethical rules in the frame of principles defined by the Civil Servants Ethical Board, to announce these rules to the personnel and to all parties related to the Institution and to ensure that the personnel act accordingly. f) To decide on any kind of contract regarding leasing, sale, procurement, transfer, barter, construction, alienation of immovable property, civil work and other works that has a value of not more than five hundred thousand New Turkish Liras on the condition that this amount shall be increased every year in accordance with the revaluation rate defined according to Tax Procedure Law No. 213, to approve decisions of the bidding committee, to make recommendations to the Administrative Board for works with a value of more than five hundred thousand New Turkish Liras and to define the limit of expenditure for the central and provincial organisation within its own limits. g) To announce those employers whose premium debt is more than the amount to be specified by the Administrative Board annually and the payment delay exceeds six months to the public in accordance with the rules and principles specified by the regulation. h) To ensure coordination with other institutions and organisations with regard to issues that falls under the scope of activities of the Institution. Deputy Presidents ARTICLE 11- Three deputies are appointed to assist the President to fulfil his responsibilities. These deputies are responsible to the President. PART FOUR Main Service Units Main Service Units ARTICLE 12- Main service units of the Presidency are as follows: a) Directorate General of Social Insurances. 6/29 b) Directorate General of Universal Health. c) Directorate General of Non-Contributory Payments. ç) Directorate General of Service Provision. d) Presidency of Guidance and Inspection. e) Department of Actuaries and Fund Management. Under each Directorate General, maximum 8 departments could be established upon the decision of the Administrative Board. Directorate General of Social Insurances ARTICLE 13- Responsibilities of Directorate General of Social Insurances are; a) To carry out tasks concerning fields other than universal health insurance and noncontributory payments in social security legislation. b) To collect premiums, to prioritise follow up procedures by classifying claims arising from overdue Premium payments and other claims related to premiums according to the period of delay and the amount, to ensure that execution proceedings and administrative proceedings concerning debtors with regard to overdue premiums and other related claims, and relevant court cases are followed up, advocated and advocated at all levels in competent authorities by permanent lawyers or contracted lawyers via attorney agreement. c) To carry out the necessary operations for the collection and pursuance of unemployment insurance premiums in accordance with Law No. 4447 dated 25/8/1999. ç) In cases deemed necessary by the Administrative Board, to carry our the collection of overdue premium payments and other premium related claims and the collection of claims of which the Institution is responsible for collection and monitoring in accordance with other laws, within the frame of protocols to be concluded by procuring services, partially or completely, from public institutions responsible for the collection and monitoring of public revenues. d) To conclude ex-officio the operations of the workplaces, the insured and those under thee scope of universal health insurance that are not registered despite being under the scope; to cooperate with the other public administrations, banks, intermediaries, chambers, stock exchanges, unions and professional organisations, as well as all other real and legal persons regarding the state of being insured and workplace inspections, data exchange and control; to develop, improve and implement projects in order to prevent informal employment. e) To inform the insured, entitled persons and employers concerning their rights and responsibilities arising from social security legislation by all means of communication. f) To follow-up and improve developments and practises related to its field of responsibilities. g) To carry out tasks of similar nature appointed by the President. Directorate General of Universal Health Insurance ARTICLE 14- Responsibilities of Directorate General of Universal Health Insurance are: a) To carry out tasks concerning universal health insurance as specified in the social security legislation. b) To contribute to the determination and efficient implementation of policies on personal protective healthcare services in cooperation with relevant public institutions in order to protect universal health insurance holder and their right holders. c) To inform the universal health insurance holder, their right holders, and employers concerning their rights and responsibilities arising from universal health insurance legislation by all means of communication. 7/29 ç) To follow-up and improve developments and practises related to its field of responsibilities. d) To do tasks of similar nature appointed by the President. Directorate General of Non-Contributory Payments ARTICLE 15- Responsibilities of Directorate General of Non-Contributory Payments are: a) To carry out tasks related to non-contributory payments as specified in social security legislation. b) To make payments as specified in the provisions of Law No. 1005 dated 24/2/1968, Law No. 3292 dated 28/5/1986, Law No. 2330 dated 3/11/1980, Law No. 2629 dated 28/2/1982, Law No. 3160 dated 28/2/1985, Law No. 3713 dated 12/4/1991, Law No. 2913 dated 11/10/1983, Law No. 168 dated 16/12/1960, and Additional Articles 17 and 18 of Village Law No. 442 dated 18/3/1924; compensation and benefit payments which shall be made by Turkish Republic Directorate General of Pension Fund as specified in the tables annexed to the budget laws of the year in concern and in other laws that refer to Law No. 2330 and which were transferred to the Institution by this Law under the condition that the amount is paid by the Treasury, and wages and other payments of privates, noncommissioned officers and civil officers who fall under the scope of these laws.1 c) To follow-up and improve developments and practises related to its field of responsibilities. ç) To do tasks of similar nature appointed by the President. Directorate General of Service Provision ARTICLE 16- Responsibilities of Directorate General of Service Provision are as follows: a) To ensure fulfilment of the continuous service provision by the Institution to realreal and legal persons. b) To define work processes in cooperation with relevant units with the purpose of improving performance concerning service provision; to collect and analyse data about the operations and to improve work processes by sharing this information with relevant units. c) To carry out the procedures and operations related to the establishment and closing of provincial organisational units. ç) To carry out all kinds of information services of the central and provincial organisation of the Institution. d) To develop the social security database, to ensure integration with the data bases of other public institutions, to update the information in the social security data base and to make his information available in a way to increase the efficiency of Institution’s activities. e) To plan, develop, establish, operate and renew necessary software and hardware infrastructure for the Institution, and to take necessary measures to ensure security and sustainability of this infrastructure. f) To follow-up and improve developments and practises related to its field of responsibilities. g) To do tasks of similar nature appointed by the President. 1 The phrase “Payments specified in Additional Articles 17 and 18 of Village Law No. 442 dated 18/3/1924” was included and integrated in the text following the phrase “provisions of Law No. 168” in this paragraph as well as in Article 4 of Law No. 5673 dated 27/5/2007. 8/29 Presidency of Guidance and Inspection ARTICLE 17- Presidency of Guidance and Inspection is responsible for the following guidance and inspection tasks on behalf of the President: a) To inspect the implementation of social security related provisions with an understanding that uses an informative and guiding approach which aims at preventing infringements/irregularities. b) To prevent unregistered employment, to combat social security abuses/corruptions and for this purpose to carry out inspections based on sector analysis and to recommend necessary measures to be taken in relation with these issues. c) To analyse persons obliged to pay premiums in terms of groups and sectors, to prioritise inspection of sectors by categorising sectors in accordance with risk evaluation criteria to be defined annually. ç) To review all records and documents related to their tasks, to request and collect information from the relevant parties. d) To define the minimum workmanship cost necessary for the execution of work. e) To evaluate the results of reports issued by inspectors throughout the year and to provide recommendations concerning the statistical information about the reports, problems encountered in implementation and necessary amendments in the legislation. f) To carry out inspections, investigation, and interrogations concerning administrative, financial, and legal operations of the central and provincial organisation staff of the Institution, and to carry our investigations and interrogations concerning the real and legal persons who have a contractual relationship with the Institution based on the powers granted in the social security legislation. g) To develop methods and techniques for the inspections to be carried out by inspectors, to establish standards and principles, to prepare inspection guides, to take measures to increase the effectiveness and efficiency of inspections and to provide opinion and recommendations accordingly. h) To carry out tasks of similar nature appointed by the President. Department of Actuaries and Fund Management ARTICLE 18- Responsibilities of Actuaries and Fund Management Department are as follows: a) To revaluate the cash and other similar property of the Institution by using financial instruments. b) To make projections based on short-term, mid-term and long-term actuarial principles in terms of population and financing, to compile all kinds of statistical information regarding finance, fund management and actuaries, to evaluate this information and report the results to the relevant units. c) To conclude protocols with banks and other financial institutions so as to ensure that collections and payments are made quickly, safely, and at low-cost. ç) To analyse the relationship between the conditions of using payments that are made from financial resources and the amount of benefits, and to prepare the technical balance sheets. d) To do tasks of similar nature appointed by the President. PART FIVE Consultation Units Consultation Units ARTICLE 19- The consultation units of the Presidency are as follows: 9/29 a) Presidency of Strategy Development. b) Department of Legal Consultancy. c) Department of Media and Public Relations Consultancy. Presidency of Strategy Development ARTICLE 20- Responsibilities of Strategy Development Presidency are as follows: a) To define and develop mid-term and long-term social security goals, strategies and policies of the Institution within the frame of the national development plan, strategies and policies, annual programme, financial objectives stated in Article 33 by the commission and Administrative Board decisions, taking into account the socio-economic data.. b) To develop performance and quality criteria for the subjects that fall under the scope of responsibility of the Institution and to carry out tasks that will be assigned within this scope. c) To collect, analyse and interpret information and data about management of the Institution and improvement of services, as well as performance. ç) To analyse external factors that would affect services with respect to issues that fall under the scope of responsibility of the Institution, to advise on necessary measures to be taken, to make a research on the internal capacity of the Institution, to analyse the effectiveness and sufficiency of services and to carry out general research. d) To carry out tasks appointed to the financial services units as specified in Law on Public Finance Management and Control No. 5018. e) To follow and encourage scientific publications related to the Institution’s fields of work. f) To make a regulative impact analysis for the new arrangements and new units to be established in the Institution. g) To cooperate with the European Union and international organisations and to carry out necessary tasks regarding social security agreements to be concluded with foreign countries concerning social security related subjects in accordance with the provisions of the Law on the Establishment and Roles of the Ministry of Foreign Affairs No. 4009 dated 24/06/1994. h) To carry out tasks of similar nature appointed by the President. A maximum of 4 departments could be established under Strategy Development Presidency by Administrative Board decision. Department of Legal Consultancy ARTICLE 21- Responsibilities of Legal Consultancy Department are as follows: a) To prepare necessary legal offers to ensure that the Institution operates in accordance with the legislation, plans and programmes so as to accomplish its objectives in a more efficient way and to deliver opinion on draft laws, regulations, by-laws, and other legislation and agreements and on other legal issues. b) To take timely legal measures protecting the interests of the Institution and preventing disputes, to assist in the making of agreement and conventions accordingly. c) To represent the Presidency in court cases where the Institution is one of the parties, to ensure that the court cases by the Institution or against the Institution, except for those regarding premiums and premium related issues, and execution proceedings are at all levels pursued, advocated, concluded and coordinated by permanent lawyers or contracted lawyers employed by the Presidency based on an attorney agreement. ç) To deliver opinion on legal issues as requested by the Institution, as well as on the operations that might have legal, financial and penal outcomes. 10/29 d) To analyse the disputes and to deliver opinions and suggestions regarding measures to minimize disputes where the Institution is one of the parties. e) To provide recommendation on the issues specified in paragraph (f) of Article 7. f) To do tasks of similar nature appointed by the President. Department of Media and Public Relations Consultancy ARTICLE 22- Responsibilities of Media and Public Relations Consultancy Department are as follows: a) To plan media and public relations activities and to ensure that these activities are conducted according to the procedures and principles to be specified. b) To take necessary measures to ensure that the applications made in accordance with Law No. 4982 Freedom of Information are concluded quickly, efficiently, and accurately. c) To do tasks of similar nature appointed by the President. PART SIX Auxiliary Service Units Auxiliary Service Units ARTICLE 23- The auxiliary service units of the Institution are as follows: a) Department of Human Resources. b) Department of Support Services. c) (Appended: 31/7/2008-5797/11th Art.) Department of Construction and Real Estate. Department of Human Resources ARTICLE 24- Responsibilities of Human Resources Department are as follows: a) To work on the manpower planning and policy of the institution and to make recommendations. b) To carry out the operations regarding the appointment, transfer, registry, promotion, wages, pension and similar matters pertaining to personnel of the Institution. c) To prepare, implement, and evaluate the training programme for staff trainings. ç) To do tasks of similar nature appointed by the President. Department of Support Services ARTICLE 25- Responsibilities of Support Services Department are as follows: a) (Amended: 31/7/2008-5797/11th Art.) To carry out the procurement of goods and services and to provide administrative and financial services including sale, procurement, leasing, repair and maintenance and archiving with regards to movable property as required by public services. b) (Amended: 31/7/2008-5797/11th Art.) To keep the record of movable property. c) To plan and implement the civil defence and mobilisation services of the institution. ç) To do tasks of similar nature appointed by the President. Department of Constructions and Real Estate ARTICLE 25/A– (Appended: 31/7/2008-5797/5th Art.) Responsibilities of Constructions and Real Estate Department are as follows: a) To carry out all kinds procurement, sales, construction, maintenance, repair, and modification work regarding the immovables. b) To rent, procure, and construct service buildings required by the Institution or to get them constructed; or to get them directly constructed by public institutions and organisations, 11/29 as well as the institution’s subsidiaries within the framework of the protocol, to be covered from the funds allocated form the relevant sections of the budget and/or in Exchange of any fields, lands and buildings that are owned by the Institution. c) To insure, give out for rent, and operate Institution’s real assets and equipment, to monitor, follow up and execute legislative evaluations, technical and economic studies, as well as rantability calculations regarding the operations concerning the transfer of real assets and limited property rights and donation of property to the Institution. d) To carry out the maintenance and repair work for the real estate and fixtures. e) To deliver recommendations regarding the execution, monitoring and control of works and operations regarding the real estate of the Institution’s subsidiariesas well as the necessary measures to be taken. f) To do tasks of similar nature appointed by the President. PART SEVEN Social Security High Advisory Board Composition and duties of Social Security High Advisory Board and procedures for its meeting ARTICLE 26- Under the presidency of the Minister, the Social Security High Advisory Board consists of the President; one representative on the level of at least General Director to be appointed by the Ministry of National Defence, Ministry of Interior, Ministry of Finance, Ministry of Health, Undersecreteriat of State Planning Organisation and Undersecreteriat of Treasury; Director General of Turkish Employment Organisation; Director General of Social Assistance and Solidarity; President of the Administration for Disabled People; one lecturer to be appointed by the Inter-university Board from the labour economy, social security, and/or labour law departments of relevant faculties; Heads of organisations that are represented in the General Board; Heads of Union of Chambers and Commodity Exchanges of Turkey, Turkish Medical Association, Turkish Dental Association, Turkish Pharmacists’ Association, Union of Chambers of Turkish Engineers and Architects, The Union of Certified Public Accountants and Sworn-in Certified Public Accountants of Turkey; and persons or representatives of institutions deemed appropriate by the Minister. Social Security High Advisory Board delivers opinion on social security policies and their implementation. Board convenes annually latest by the end of March in accordance with the date and agenda decided by the President. The secretariat services of the Board shall be providedby the Presidency. Principles and procedures of the operations of the Board shall be regulated in a by-law to be issued. PART EIGHT Provincial Organisation Provincial Organisation ARTICLE 27- The provincial organisation of the Presidency consists of provincial social security directorates in provience and social security centres to be established as affiliated bodies of the provincial social security directorates. A sufficient number of social security centres may be established according to the population, number of insured and number of those with a universal health insurance, number of workplaces, intensity of operations and other criteria to be specified; they might be abolished in a similar manner. Provincial social security directorates and social security centres could be classified in four categories with regard to the administrative work and operations in accordance with the 12/29 criteria specified in paragraph two on the condition that the procedures and principles of their organisation is regulated by a regulation. PART NINE Provisions on Personnel Status, wages, and financial rights of personnel ARTICLE 28- Main and permanent duties required by the services of the institution shall be performed by personnel employed in accordance with Civil Servants Law No. 657. As for the social security aspect for the permanent civil servants of the Institution, provisions of Law of Turkish Republic Retirement Fund No. 5434 shall apply. Civil servants employed in the central and provincial organisation of the Institution, as well as the contracted personnel and the medical doctors who are appointed externally from other institutions to work in medical boards and in the examination of invoice and prescriptions shall receive an additional payment not more than %200 (including the supplementary scale) of the highest level civil servant wages. (Amended second sentence: 8/3/2007-5597/3rd Art.) For personnel employed in cadres of healthcare serviceand supporting healthcare services and those who are appointed as principal or acting personnel in departments that classify as general administrative services, as well as medical doctors, dentists, and pharmacists working actively in the Directorate General of Universal Health Insurance, the ceiling for additional payment is %700. The additional payments are exempt from taxation except for stamp tax. Principles and procedures regarding the additional payment amounts and the payment itself are identified by the Minister based on the request of Administrative Board and the opinion of the Ministry of Finance taking into account criteria such as the unit of employment and work load, place of employment, significance and level of difficulty of the task, personnel class, cadre title, degree, kind of assignment, whether the person is free-lance or not, performance, used days-off and sick-leaves, and disciplinary penalties.1 Qualifiedpersonnel of not more than 50 people might be employed in the Institution to carry out IT services by contract. (Amended second sentence: 8/3/2007-5597/3rd Article) The amount of payment for not more than five of these people selected by the Institution, who will be employed this way may not exceed five times of the ceiling amount of the contract of those employed in accordance with paragraph (B) of Civil Servants Law No. 657 dated 14/7/1965, for the other five the amount may not exceed four times of the ceiling amount, and for the remaining ones the amount may not exceed three times of the ceiling amount and no other payment may be made to these people except for the amount specified in this paragraph. The amount of wages to be paid for this group of personnel and principles and procedures of the contract shall be defined by the Administrative Board based on the opinion of State Personnel Presidency and Ministry of Finance. (Amended last sentence: 8/3/2007-5597/3rd Article) Graduation from the engineering faculty, or from statistics, mathematics, or physics departments of at least four years of instruction of science-literature faculties, and owning a document concerning the programming languages learned during the graduate-level computer courses or a certificate of accomplishment of a computer course certified by one of the 1 Hereby, the phrase “…. contracted personnel” in this paragraph has been amended and integrated in the text as “… contracted personnel, and the medical doctors who are appointed externally from other institutions to work in medical boards and in the examination of invoice and prescriptions” in accordance with Article 3 of Law No. 5597 dated 8/3/2007. 13/29 universities or by the Ministry of National Education is a requirement for those to be employed this way.1 Permanent staff of the Institution with a civil servant status may receive not more than two bonus payments equal to their own wages (including supplementary scale) and not less than minimum wages per year. Performance and disciplinary penalties of personnel shall be taken into account when deciding on bonus payment. For all kinds of tasks that require overtime work, those civil servants and contracted personnel assigned for work more than the regular working hours and who work actively shall be paid and additional payment two times of the amount specified in the central administration budget law of that year on the condition that this overtime payment is not more than 60 hours a month.Overtime work may be performed in accordance to principles and procedures specified by the Administrative Board. In case of force majeure, this period may be increased by 50%. Members of Administrative Board and Institution personnel are considered to be public officers in relation to the Turkish Penal Law No. 5237 and are subject to the provisions of Law No. 4483 on the Prosecution of Civil Servants and other Public Agents, Law No. 3628 on Declaration of Assets, Fighting against Corruption and Bribes, and Law No. 6245 on Travel Allowance. Provisions of Law No. 1389 on Counselling Fees to be awarded to the Attorneys at Law Representing the State at Courts shall apply regarding the distribution of attorney fees collected from the other parties upon judgement in relation with court cases that are concluded in favour of the Institution as well as execution proceedings to legal advisors, lawyers and other personnel actively involved in these proceedings. Principles and proceedings governing the distribution of attorney fees are regulated in a by-law. Cadres and appointment ARTICLE 29- For designation, creation, utilisation, and cancellation of Institution cadres, and for other issues regarding cadres, provisions of Decree-law No. 190 on General Cadre and Procedures, and for appointments, where no provision exists in this Law, the provisions of Law No. 2477 dated 23/6/1981 shall apply. President, Deputy President, General Director, Presidenct of Guidance and Inspection, President of Strategy Development, Head of Actuaries and Fund Management and the first Legal Advisor are appointed by joint decree; Head of Departments under the Directorates and Strategy Development Department, Head of Human Resources, Head of Support Services, Head of Construction and Real Estate and social security provincial directors are appointed by the Administrative Board in accordance with the opinion of the President and remaining personnel is appointed by the President. 2 Graduation from the higher education institutions of at least four years of instruction is sought for in addition to the general conditions set forth in Article 48 of Law 657 on Civil Servants to be appointed to the cadres specified in paragraph two and the cadres including head of departments, social security provincial directors, social security provincial deputy directors and social security centre managers. 1 2 Implementation of this paragraph in 2007 was regulated in accordance with Article 30 of 2007 Central Administration Budget Law issued in the Official Gazette with Multiple No. 26391 dated 29/12/2006; however, the provision regulating the implementation was abolished by Constitutional Court Decision No. E.: 2007/17, K.: 2007/45 dated 5/4/2007. The phrase “Head of Construction and Real Estate Department” was included and integrated in the text following the phrase “Head of Support Services” in this paragraph in accordance with Article 11 of Law No. 5797 dated 31/7/2008. 14/29 Social Security Experts, Inspectors and their Assistants ARTICLE 30- In order to be appointed to the position of assistant experts or assistant inspector in the Institution; in addition to the conditions set forth in article 48 of Law No: 657 on Civil Servants, the following conditions are sought; a) Graduation from the higher education institutions of at least four years of instruction such as faculties of law, political sciences, economics, business administration, economic and administrative sciences, medicine, dentistry and pharmacy; or from departments of social services, health management or health administration, mathematics, statistics, actuary, banking, insurance, business administration engineering, industrial engineering, software engineering, electrics and electronics engineering, computer engineering; or from other domestic and international higher education institutions accredited by the The Council of Higher Education. b) Being successful in the competitive professional examination and the language proficiency test conducted by the Institution. c) To be below the age limit of 30 as of the first day of January in the year of examination. The individuals, who are appointed as assistant experts or assistant inspectors in accordance with paragraph one, shall acquire the right to take the proficiency exam for social security experts in the case of assistant experts; and the proficiency exam for inspectors in the case of assistant inspectors, on the condition of working for three years, having a positive record, and preparing a dissertation on a subject assigned by the Institution.The ones that pass the exam shall assume the title of “Social Security Expert” or “Inspector” on the condition that they are able to present at least a level (C) grade in one of the three languages; English, German, or French, from the Foreign Language Proficiency Examination for Civil Servants The ones that fail in the proficiency exam for social security experts or inspectors shall be subject to the same exam for a second time within the following year. The ones that fail for a second time shall be appointed to another position appropriate for their condition. Those who fail to produce a language certificate despite being successful in the examination of competence for social security experts or inspectors may submit their language certificate within two years following the examination. Those who fail to present the language certificate at the end of this period are appointed to other appropriate cadres. The period of assistantship may not exceed five years excluding the military service or periods of unpaid leave. The procedures and principles concerning recruitment, preparation of dissertation, training, proficiency examinations and other issues regarding the assistant social security experts and assistant inspectors are regulated in by-laws to be issued by the Institution. Social security control officer ARTICLE 31- Social security control officers are employed in the social security provincial directorates to be assigned for detection, inspection and screening operations with regard to implementation of social security legislation. Social security control officers are empowered to investigate the records and documents relevant to their tasks. In order to be appointed as a social security control officer; at least a three year period of employment in the Institution, graduation from the higher education institutions of at least four years of instruction or from a higher education institution abroad which is accredited by the Council of Higher Education; and accomplishment in the proficiency examination are sought for. Performance Management ARTICLE 32- The duration and procedures regarding the completion of basic services addressing legal and real persons whom the Institution is responsible for providing 15/29 services to shall be defined and announced in advance. This period and the procedures are enlisted among the performance criteria of the Institution and personnel. Principles and procedures regarding the development of institutional performance goals into individual goals so as to be adapted to the units of the Institution and be implemented are regulated by means of a regulation to be issued by the Institution. PART TEN Financial Provisions Defining and monitoring of financial objectives of the Institution ARTICLE 33- Institution is responsible for realising annual allocated transfer amounts for the Institution from the central administration budget, separately concerning social insurance, universal health insurance and non-contributory payments, and for achieving financial objectives regarding three year financial projection(s) and long term pensions and universal health insurance.. In order to be implemented in the following year, financial objectives are determined every year not later than October by a Commission comprising Ministry of Finance, Ministry of Health, Undersecretaries of State Planning Organisation and Treasury, presided by the Minister upon the recommendation of Administrative Board. Institution acts as the secretariat of the Commission. Institution is responsible for taking the necessary measures to realise these objectives, to present suggestions on the amendment of the legislation to the Ministry, and to make recommendations on necessary measures regarding issues that o not fall under the scope of its authoritys. Public administrations are obliged to consult the Institution concerning regulations and practices that would affect the realisation of Institutions financial objectives directly. President shall submit, both orally and in writing, a six-monthly/biannual report presenting the measures planned and taken for the realisation of defined goals, as well as the outcomes, and also recommendations from other public administrations and their results to the Council of Ministers, Grand National Assembly Of TurkeyCommission on Health, Family, Labour and Social Affairs and Commission on Planning and Budget. In case the Institution fails to achieve the defined goals within the given period or there is a posibility of failure the Institution shall inform the Ministry in writing about the reasons and necessary measures to be taken foreseen and shall announce it to the public. Revenues and Expenditure of the Institution ARTICLE 34- Revenues of the Institution are as follows: a) Revenues from social insurance and universal health insurance premiums, administrative fines, default penalties and shares. b) State contribution to social insurance and universal health insurance. c) Revenues from movable assets and real estate. ç) Payments made from the central administration budget in return for noncontributory payments. d) Revenues from sales of all kinds of standard forms, magnetic, electronic or smart cards prepared by the Institution, as well as revenues from all kinds of data lines, internet use and similar rental revenues. e) Other transfers to be made from the central administration budget. f) Donations made by real or legal persons directly or by will. g) Revenues obtained from the revaluation of premiums and other revenues. h) Other revenues. Expenditures of the Institution are as follows: 16/29 a) Income, monthly wages and benefits paid to the insured and right holders under the scope of social security. b) Expenses in the scope of universal health insurance. c) Monthly wages, compensation payments and other payments paid to the insured and right holders under the scope of non-contributory payments. ç) General management expenses. d) Interest expenses. e) Service expenses for training, research, and consultancy. f) Other expenses. Acquisition of immovable property and legal status of Institution’s assets ARTICLE 35- The institution may not own any immovable property except for those required with regard to the assigned services, and those received by means of donations. Assets, claims and bank accounts of the Institutions are all considered state property in accordance with Execution and Bankruptcy Law No. 2004 and Procedure Law on Collection of Public Claims No. 6183. Therefore they are priviladged claims. Institution’s rights and claims; including movable and immovable properties, as well as the bank deposits may not be attached for debt and provisions of attachment and bankruptcy of Execution and Bankruptcy Law No. 2004 may not apply. The Institution is exempt from the liability to provide a guarantee for any kind of court cases or execution operations. The Institution is not subject to the State Procurement Law No. 2886. Principles and procedures to be followed in operations that fall under the scope of Law No. 2886 shall be regulated in a regulation to be issued by the Institution. Rate of increase regarding the rent of Institutions immovable property shall be determined according to the current value on the condition that it is not less than the revaluation rate defined annually in accordance with Law. No 213 on Tax Procedures. Tax and fund exemption ARTICLE 36- Although not referred to in relevant laws, immovable properties and real assets of the Institution, relevant procurement and sale procedures, donations and aids made to the Institution, legal proceedings in which the Institution is one of the parties, execution cases and verdicts, all land registry operations regarding the real assets of the Institution, all operations to be done by the Ministry, as well as any written texts and documents to be obtained from or submitted to relevant authorities with respect to such operations and the copies of such documents are exempt from stamp tax and duties; and all kinds of charges and contributions that normally are demanded for any services provided by the municipalities. Miscellaneous financial provisions ARTICLE 37- General administrative costs may not exceed 5% of the total annual revenues of the Institution. It is essential that all revenues of the Institution shall be managed in a way to make the highest income for the Institution in accordance with the principle of risk distribution and prudent management rules. Social security and universal health premiums, unemployment premiums, administrative fines, default penalties, and contribution payments that are not paid in due time shall become Institution’s claims and for the collection of these payments, the articles, other than Article 51, 102, and 106, of Procedure Law on Collection of Public Claims No. 6183 shall apply. 17/29 Expenses related to the non-contributory payments are covered from the central administration budget. It is essential that the other costs be covered from the revenues obtained from the premiums and revaluation of premiums. It is obligatory that the financial costs arising from the legal regulations regarding laws other than social security law, which will increase the Institution’s expenses are covered from the central administration budget. Social security fund, universal health insurance fund and non-contributory payments fund shall not be combined under a single fund and no reallocations or transfers can be made between the separate funds under no circumstances. PART ELEVEN Responsibilities and Authoritys Responsibilities of Managers and Transfer of Authority ARTICLE 38- Managers at all levels of the Institution are responsible to their superiors for executing their tasks in accordance with the legislation, strategic plan and programmes, performance criteria, service quality standards and based on the satisfaction of those using the services of the Institution. Managers at all levels of the Institution may delegate some of their authoritys provided by the condition of specifying the limitations clearly in writing to their subordinates. Delegation of authority shall be notified to the concerned parties by appropriate means. Notification ARTICLE 39- For notifications that shall be made in accordance with this Law, the provisions of Law No. 7201 on Notifications shall apply. PART TWELVE Various Provisions Correspondence, document, information archiving principles ARTICLE 40- All kinds of operations and records of the institution can be kept electronically. Records of the Institution are considered to be basic in the determination and authentication of the operations and electronically kept information. Institution records are considered to be as valid as official documents by legal and administrative authorities. In case of objection to the Institution records, obligation of proving belongs to the objector. It is obligatory to inform the persons whose applications are declined by the Institution about the reasons of declined and the legal rights of these persons about this case must be mentioned. Regulations and Notifications ARTICLE 41- Tasks and authorities of the presidency central and provincial organization, principles and procedures of working; employment, appointment, promotion, transfer, tasks, authorities and responsibilities of the Institution personnel are regulated by the regulations published by the Institution. Regulations which need to be formed according to the Law hereby shall be put into force within a year after the implementation date of the Law at latest. The Institution is authorized to publish notification with the aim of announcing the issues about the implementation of the services that are assaigned by laws. Notifications about the real and legal persons outside the Institution are published in the Official Gazette. 18/29 Added and Modified Provisions ARTICLE 42- a) (This article is about 10/12/2003 dated and 5018 numbered Public Finance Management and Control Law and was entered to its place.) b) (About the 9/1/1985 dated and 3146 numbered Law on the Organization and Functions of Ministry of Labour and Social Security and was entered to its place.) c) (About the 25/6/2003 dated and 4904 numbered Turkish Labour Institution Law and was entered to its place.) d) The statement of “Presidency of Social Insurances Institution Assistant Inspectors and Insurance Assistant Inspectors” was changed into “Social Security Institution Assistant Inspectors” mentioned in the (A/11) numbered paragraph of “Common Provisions” chapter of the 36th article of the 657 numbered Civil Servants Law; and the statements of “Bağ-Kur (Social Security Organization for Artisans and Self-Employed) Assistant Controler” and “Social Insurances Assistant Experts”, “to Bağ-Kur Controler” and “to Social Insurances Expert” of the same paragraph were removed. e) The statement of “Chief Inspector, Inspector and Assistant Inspectors, Insurance Inspector and Insurance Assistant Inspectors of Presidency of Social Insurances Institution” in the (g) sub-paragraph of “A- Special Service Compensation” paragraph of “IICompensations” chapter of the 152nd article entitled “Extra Payments and Compensations” of the Civil Servants Law numbered 657 was changed into Chief Inspector, Inspector and Assistant Inspectors of Social Security Institution”, and the statement of “Social Insurance Expert” and “Bağ-Kur Controlers” in the (i) sub-paragraph were removed. f) The statement of “Presidency of Social Insurances Institution” in the (c) paragraph of “I- General Administration Services Class” chapter of (I) numbered Additional Table of Indicators annexed to 657 numbered Civil Servants Law was removed, the statement of “Social Security Institution President of Guidance and Inspection” was added to (d) paragraph, the statement of “Social Insurances Institution Presidency Inspectors, Insurance Inspectors” in the (g) paragraph was changed into “Social Security Institution Inspectors, Social Security Experts”, the statements of “Bağ-Kur Controlers”, “Social Insurance Experts” and “Social Security Experts” in the (h) paragraph were removed. g) The statement of “Head of Departments Affiliated to the Presidency of Social Insurances Institution” in the chapter entitled “In 2. Jurisdiction Institutions, Affiliated and Related Institutions and Higher Education Institutions” of (II) numbered Additional Table of Indicators annexed to the 657 numbered Civil Servants Law was replaced with the terms of “Social Security Institution Head of Actuary and Fund Management Department, Social Security Institution Headof Human Resources Department, Social Security Institution Headof Support Services Department, Social Security Provincial Director (Ankara, İstanbul, İzmir)”; and the term of “Social Security Provincial Director” was added to the chapter entitled “In 5Jurisdiction Institutions, Affiliated and Related Institutions and Higher Education Institutions”. h) The statement of “Social Security Institution Head of Deparments (auxillary Service Unit) in the (5/c) numbered paragraph of (IV) numbered Table of Authority Compensation annexed to the 657 numbered Civil Servants Law was replaced with the term of “Social Security Institution Department Directors”; the statement of “Presidency Inspectors of of Social Insurances Institution and Insurance Inspectors” was modified as “Inspectors of Social Security Institution”; in (9/a) paragraph the term of “Social Security Provincial Directors (Ankara, İstanbul, İzmir)” was added after the term of “Provincial Directorates of Security” and in (9/b) paragraph the term of “Social Security Province Directors” was added after the term of “Social Security Province Directors (Ankara, İstanbul, İzmir)”. 19/29 Abrogated Provisions ARTICLE 43- a) 9/7/1945 dated and 4792 numbered Social Insurances Institution Law, b) Articles between 1 and 9 and provisional first article of the 16/7/2003 dated and 4947 numbered Social Security Institution Organization Law, c) Articles between 1 and 24 and provisional first article of the 29/7/2003 dated and 4958 numbered Social Insurances Institution Law, d) Articles between 1 and 23 of the 2/9/1971 dated and 1479 numbered Artisans and Craftsmen and Other Self-employed Social Insurances Institution Law, e) Articles between 1 and 3; 6 – 11 and 25 – 29 of the 8/6/1949 dated and 5434 numbered Republic of Turkey Retirement Fund Law, f) In 24/6/1983 dated and 72 numbered Law Provision, (c) paragraph of (2) clause of the 1st article of the Decree, g) (b) paragraph of article 35/A of the Decree in 13/12/1983 dated and 178 numbered Law Provision were removed. Examination of invoices and similar documents APPENDED ARTICLE 1– (Annex: 8/3/2007-5597/4 article) a) Examination through sampling: The invoices arranged by the real and legal persons who provide healthcare servicehealthcare service and by the enterprises belonging to public administration with circulating capital as remuneration and which are sent to the Institution for payment (including the institutions transferred with the 5502 numbered Law) are examined with the 5% – 10% sampling method in a way to obtain general results. As a result of this examination the amount of the payment is determined to be implicated on the invoices of the real and legal persons who provide healthcare servicehealthcare service and the enterprises belonging to public administration with circulating capital and the payment is made according to this. (Amended second clause: 17/4/2008-5754/88 article) From the invoices sent to the Institution by the persons or institutions in the context of the clause above before the date of 1/1/2007, the ones examinations of which have not been completed, shall be examined according to the clause above and recorded as cost and if granted as advance payment, they shall be deducted. The part of the granted advance payments to be reimbursed is transferred to the account of receivables by the Institution. The error rate determined as a result of this examination and the fact that the examination is carried out according to the provisions of this clause is announced to the related person and institutions in writing. The real and legal persons and the enterprises with circulating capital belonging to public administration, which do not accept the invoice examination method through sampling, shall inform the related body about their preference in writing. In case of no notification, the sampling method is accepted to be approved. An advance payment is made in a rate perceived appropriate by the Institution in a way that does not exceed the receivable amount which has not been examined yet in order to be absorbed into the unresolved receivables of the real and legal persons and the enterprises with circulating capital belonging to public administration. No payment is made to the real and legal persons and the enterprises with circulating capital belonging to public administration which bill healthcare service, other than the amount left after the extension of the error rate determined through sampling to all receivables. Doctors and pharmacists out of the institution may be appointed for the examinations and controls to be performed with sampling method. If needed, it can also be performed by the people and independent supervisory institutions subject to the 1/6/1989 dated and 3568 20/29 numbered Independent Accountants, Certified Public Accountants and Chartered Accountants Law. b) Examining and recording in electronic envirement: The Institution may request the real and legal persons and the enterprises with circulating capital belonging to public administration to arrange their service invoices electronically and send them and their basic documents in electronic way according to the 4/1/1961 dated and 213 numbered Tax Procedure Law Reiterated 242 article. In this case the payments which will be made to the related parties shall be concluded according to the examinations performed on these documents. The Institution is authorized to determine the procedures and principles for the implementation formats and standards to be applied for information transfer, arrangement of the documents in electronic media and transfer of these documents to the real and legal persons and the enterprises with circulating capital belonging to public administration for recording and examination. The payment made in accordance with this article is accepted to be made according to the 10/12/2003 dated and 5018 numbered Public Financial Administration and Control Law. APPENDED ARTICLE 2– (Annex: 8/3/2007-5597/4 article) According to the Ministry of Finance, Social Security Institution and 18/6/1992 dated and 3816 numbered Law about The Right of Payment of the Treatment Costs of the Citizens Who Do Not Have The Financial Power to Pay by the State via Green Card, the institutions responsible for meeting these costs are authorized to pay these costs of treatment provided by the first level health institutions directly via service procurement contracts for insured, participants, retired and other right holders. Ministry of Health is obliged to provide all kinds of healthcare services which to be given at the this level given by the institutions stated above to the citizens in return to the amount stated in the contract and cannot demand any payment other than the amount determined in the contract from the institutions and the person who receives healthcare. For the services which will be directly provided according to the contract, no invoice and basic documents are sent to the institutions. Ministry of Finance, Ministry of Health and Social Security Institution are jointly authorized to determine the persons who will receive healthcare service in the context of this level and the healthcare services, the procedures and principles of the transfer to be made from this level to the second level health institutions and organizations. PART THIRTEEN Provisional and Final Provisions Transferred institutions and provisions about the transfer PROVISIONAL ARTICLE 1- Staff of the central and provincial organizations and civil servants and workers of the staff of the Social Security Institution founded by the 4947 numbered Social Security Institution Organization Law, Social Insurances Institution founded by the 4958 numbered Social Insurances Institution Law, Artisans and Craftsmen and Other Self-employed Social Insurances Institution founded by the 1479 numbered Artisans and Craftsmen and Other Self-employed Social Insurances Law and Republic of Turkey Retirement Fund founded by the 5434 numbered Republic of Turkey Retirement Fund Law, the employed staff according to the (B) paragraph of the 4th article of the 657 numbered Civil Servants Law were transferred to the Institution with their current titles, all kinds of movables, immovables, immovables, service buildings, materials, equipments, inventory stocks and vehicles, receivables, rights, debts, participations, files, all kinds of records in the electronic media and other documents registered in the name of these Institutions in the land 21/29 registry without any need of any operation from the date the Law was put into force. Transfer operations are exempt from all kinds of tax, duty and fee. The immovables in the use of transferred institutions or belong to the Treasury which are allocated to the transferred institutions are deemed to be allocated to the Institution without any operation. The contracts signed by the transferred institutions, their loan agreements, investment projects, the cases opened in favour of or against these institutions, execution proceedings are executed by the Institution and are transferred to the Institution with all their rights, authorities, obligations, receivables and debts. The contracts, loan agreements, investment projects, letters of guarantee and mortgage documents given by the banks due to cases to the transferred instutions and their related public institutions and organizations are deemed as presented to the Institution without any additional operations. (Modified fifth clause: 1/7/2006-5538/33 article.) The budgets of the year 2006 of Presidency of Social Security Institution, Republic of Turkey Retirement Fund, Social Insurances Institution and Artisans, Craftsmen and Other Self-employed Social Insurances Institution shall continue to be implemented according to the present principles and procedures till the end of year 2006. According to this law, all possible costs which may arise form the new organization can be paid from the budget of the transferred institution with the approval of the Minister. All kinds of movable, immovable, vehicle and other donations conditionally made to the transferred institutions continue to be used in accordance with the donation conditions after the transfer. Provisions about organization and staff 1 PROVISIONAL ARTICLE 2– The central and provincial organization and staff of the Institution shall be adapted to this Law in three years at latest. These three years can be extended two more years with the decree of Council of Ministers. In this period the duties which have to be executed by the Institution continue to be performed by the central and provincial staff of the transferred institutions and/or by the personnel of the Institution. Before the date of enforcement of this Law no appointment is made to the vacant positions at that time or the positions which were emptied somehow, except for the ones placed to be assigned for the first time according to the Public Personnel Selection Examination results and appointment to be made to the declared cadres by title change and promotion. According to this Law, the executive boards of the transferred institutions shall go on to fulfill their tasks as requested by the related abolished laws until an Executive Board is established. After the Executive Board of the Institution comes into office with the minimum number of members, the tasks and legal personalities of the executive boards of the transferred institutions come to an end, their authority shall begin to be used by the Executive Board of the Institution according to the abolished provisions of the related law and some of these authorities approved by the Board may be transferred to the Director or related departments. As requested by this article, for the executive board members whose time of duty expired, the provisions about the end of time of duties for executive board members, which were abolished with the 43rd article, are implemented. The Executive Board members whose duties have expired due to this clause for the period until their normal period of Executive Membership is completed their financial rights they used to get in relevance to their Executive Board cadres shall continue to be paid. The Minister may appoint these persons to an appropriate position in the Ministry or Institution in this period. 1 1 1 30th article of Year 2007 Central Administration Budget Law in 2007 which was published in the 29/12/2006 dated and 26391 Repeated numbered Official Gazette was modified related to the implementation of this 22/29 To this Law; the positions mentioned in the annexed (1), (2) and (4) numbered lists were created and added as Social Security Institution chapter to the (III) numbered table of 190 numbered Provision of Law; the positions mentioned in annexed (3) numbered list were created and added in the chapter about Ministry of Labour and Social Security of the (I) numbered table of 190 numbered Provision of Law; the position mentioned in annexed (5) numbered list were created and added in the chapter about Ministry of Finance of the (I) numbered table of 190 numbered Provision of Law. In the transferred Institutions the duties of the President of Social Security Institution, President of Social Insurances Institutions, Deputy President of Social Security Institution, General Director, Deputy General Director, I. Legal Adviser, Head of the Department (including the Head of Director whose position was removed with 22/12/2005 dated and 5436 numbered Law), Chair, Regional Manager expire and the persons who work in the positions of Republic of Turkey General Directorate of Retirement Fund General Director and Deputy General Director are appointed to the position of Ministry Adviser created and added with (5) numbered list and the others are appointed to the position created and added with (3) numbered list. The duties of the ones who work in the positions of Provincial Director, Insurance Provincial Director, Health Issues Provincial Director, Insurance Director are expired and are deemed to be appointed to the positions of Directorate Advisers created and added with (4) numbered list. If the positions of Ministry Adviser and Directorate Adviser, which are created according to this article, are emptied due to some reason, then these positions are deemed to be cancelled without the need for any operation. The personnel appointed according to this clause and the fifth clause are deemed to be assigned to their positions and/or tasks in the transferred institutions and continue to execute the tasks they are responsible of fulfilling in the transferred institution without exceeding the time period determined in the first clause. For the period of assignment, they continue to receive their monthly salaries, additional indicators, all kinds of rises and compensations and other financial rights concerning the former cadre in transferred instutions but the ones whose total net amount of monthly salaries and financial rights of the new cadre they are assigned is higher than their former position receive the salaries and financial rights of the new position. These time periods are taken into account while calculating the time periods stated in the 68 th and 73rd articles of the 5434 numbered Republic of Turkey Retirement Fund Law. Persons who work as Chief Inspector, Insurance Chief Inspector, Inspector, Inspector (privatization), Insurance Inspector, Assistant Inspector and Insurance Assistant Inspector, (…)(1) are deemed to be appointed to the positions of Chief Inspector, Inspector and Assistant Inspector created with this Law; and the persons who work as Social Security Assistant Expert, Social Insurance Assistant Expert and Social Insurance Expert are deemed to be appointed to the positions of Social Security Assistant Expert and Social Security Expert in the Institution with their titles without any operations. The ones who worked as insurance inspection officers in the transferred institutions are deemed to be appointed to the position of security control officer with their current titles without any operations. 2 The position changes in the transferred institutions and Institution are implemented within the time period determined in the first clause according to the provisions of Decree Law without implementing the last clause of the 9th article of 190 numbered Decree Law. 1 2 clause in 2007, and later the provision regulating this implementation was cancelled with the 5/4/2007 dated and E.; 2007/17, K.: 2007/45 numbered Decree of the Constitutional Court. The statement of “authorities are used by the Institution’s Board of Directors according to the abolished law provisions” was modified as “authorities are used by the Institution’s Board of Directors according to the abolished provisions of the related law and they can transfer some of these authorities to the director or the related unit” and this statement was added to the text. The statement of “at the end of the period determined in the first clause” which is in the first sentence of this clause was removed from the article text by 3rd article of the 8/3/2007 dated and 5597 numbered Law. 23/29 In the event that the persons working in the positions belonging to the central organizations of the transferred institutions cannot be appointed to the Institution positions in the (1) or (2) numbered lists created with this Law at the end of the period determined by the first clause, they can be appointed to the needed positions of the ministries the transferred institutions are aligned or related to or of the related institutions aligned to these ministries in maximum thirty days in day apply in thirty days. The positions of the persons who do not make an application or who cannot get appointed despite applying and the persons from the central and provincial organizations of the transferred institution, and who are not appointed to the Institution positions in the (1) and (2) numbered list created by the Law, are deemed to be added to the (4) numbered list of central or provincial organization with the same position titles within sixty days after the time period defined in the first clause. However, the number of the positions which are added this way does not exceed 2500. If these positions are emptied due to any reason, they are deemed to be cancelled without the need to perform any operation. Sixty days after the end of the time period defined in the first clause, the former positions persons who are appointed to the positions belonging to the transferred institutions and the positions in the (3), (4) and (5) numbered lists created with this Law are cancelled and the annex of the 190 numbered Decree Law about General Positions and Procedure is deemed to be removed from the tables. According to the 25th article of the 24/11/1994 dated and 4046 numbered Law, the positions (except for the Inspector) assigned to the transferred institutions and the personnel who work in these positions are deemed to be transferred to the Institution without the need for any operations, the rights of these (including the Inspector) and the ones in the second paragraph of (A) clause of the provisional 1st article of 4958 numbered Social Insurances Institution Law, (D) clause of the provisional 9th article of the 9/1/1985 dated and 3146 numbered Law and forth clause of the 17th article of the 5436 numbered Law are reserved. The contract employee positions endorsed in the name of the transferred institutions according to the (B) paragraph of the 4th article of 657 numbered Civil Servants Law are deemed to be endorsed in the name of the Institution. The positions assigned to the Institutions with the 22/12/2005 dated and 5436 numbered Law are deemed to be assigned to the Institution without any operations and the personnel appointed to these positions continue to execute their duties of the former institutions according to the 5436 numbered Law. According to this article, if the total amount (this amount is considered as a fixed value) of the payments received by the appointed personnel related to their former positions made under the names of monthly salary, additional indicator, bonus (the amount of a single month), all kinds of rise and compensation, executive compensation, representation compensation, duty compensation, additional payment (except for the additional payments in the form of supplements) and similar names (except for overtime payments) exceeds the total net amount of the payments of their new position made under the names of monthly salary, additional indicator, bonus (the amount of a single month), all kinds of rise and compensation, executive compensation, representation compensation, duty compensation, additional payment (except for the additional payments in the form of supplements) and similar names, the deficient amount is paid as compensation without any tax or stoppage until the deficiency is fulfilled. The ones who made an optional change in their position titles of the institution they were transferred to or the ones who were appointed to other institutions upon their own demand shall not receive deficiency compensation anymore. From the personnel who work according to the 657 numbered Civil Servants Law, the ones who have a positive record for the last three years, have the conditions determined in the (a) paragraph of the first clause of the 30th article and who present a document of Foreign Language Proficiency Examination for State Employees in one of the English, French or 24/29 German languages at least at the (C) level, can participate to the first held social security expert proficiency examination under the condition that they prepare papers on the subjects determined by the Institution. The participants who are successful at this proficiency examination are appointed to the positions of “Social Security Expert”. However, the number of the persons who are appointed as social security experts shall not exceed 5% of the number of the social security expert positions. The statement of Institution service mentioned in this Law also comprises the interim service periods fulfilled at the transferred institutions. The assignment of the persons who are appointed to the positions of ministry adviser in the annexed (3) and (5) numbered lists within the period of time determined in the first clause may be cancelled by the Minister according to this Law and these persons can be appointed to the appropriate and needed positions in Ministry, Institution or transferred institutions in accordance with their conditions and new appointments can be made with the same procedure. And for the other personnel of the transferred institutions, appointments can be cancelled by the Chair according to the Law if the assignment is not needed anymore and these persons can be appointed to the appropriate and needed positions in the Institution or transferred institutions in accordance with their conditions and new appointments can be made with the same procedure. From the beginning of the month following the implementation date of the Law, for the ones who are appointed to their former positions the additional payments, bonuses and overtime payments are calculated by taking into account their position and/or title according to the 28th article of the Law and for the other ones the payments are calculated by taking into account their position titles in the institutions to which they are transferred according to the 28th article of the Law until they are appointed to the Institution positions created by this Law. In the transferred institutions, as from the implementation date of this Law, the rights of the personnel who benefit from public housing keep their validity during the period determined in the first clause under the condition that their duties continue. According to the second clause of the 6th article the minimum attendance number of meeting needed for Administrative Board required by the second clause of the 6th article is applied as “5” during the period determined by the first clause of this article. (Additional clause: 1/7/2006-5538/33 article.) “Board of Health” which has been transferred to the Institution formerly functioned in the Republic of Turkey General Directorate of Retirement Fund according to the according to the abolished provisions of 5434 numbered Republic of Turkey Retirement Fund Law and it shall continue to fulfill its tasks until Institution Higher Board of Health is founded. Provisions about the immovables PROVISIONAL ARTICLE 3- From the immovables which have been transferred to the Institution according to the first clause of the provisional 1st article of this Law, the ones that are not needed in terms of service by the Institution are determined by the Administrative Board within one year after the implementation date of the Law and Ministry of Finance is informed for selling them over the current market value. These immovables are registered to the Treasury exofficio in title deed within six months after the notification date. These immovables are sold by the Ministry of Finance and the sales amount is paid to the Institution within one month after the date of the sales. As requested by this clause, from the immovables which are registered to the Treasury, the current market value of the ones which cannot be sold in five years is paid to the Institution by the Treasury. In the context of this clause, during the transfers of the immovables the party which takes the immovables over becomes the complete successor of the transferring party. 25/29 In the event that the sales operations of the hotels and participation shares transferred to the Institution and determined by the Administrative Board of the Institution are decided to be performed by the Privatization Administration, the Administration is informed about this hotels and participation shares to be sold and these are presented to the High Board of Privatization by the Privatization Administration so as to be included in the privatization program. Upon the decision of the High Board of Privatization sales operations are carried out in the framework of the 4046 numbered Law Provisions about Privatization Implementations. The value determination operations of the hotels and participations to be sold are concluded after the Administrative Board of the Institution presents its opinion. The income obtained from the sales is transferred to the Institution after the amount of the costs paid by the Privatization Administration is cut. The property and status of the hotels and participation shares of the Institution which have been included in the privatization program in order to be solved are kept. In the context of the immovables transferred to the Institution according to the provisional 1st article of this Law, excluding the changes to be made about these immovables in the advantage of the Institution, operations of allotment, amalgamation, registration, finding, construction plan amendment and transition to property ownership are performed within two months after the demand of the Institution by the related bodies without being subject to the constraints in the construction legislation. For the transition to the property ownership, the plan of the related directorate of cadastrate determining the actual situation of the ground is deemed as layout plan and property ownership is established on this immovable without the need of any other information or document if the photograph written in the (b) paragraph of the second clause of the 12th article of the 634 numbered Property Ownership Law is approved by the Institution and if the related title deeds registry office presents a demand. According to the provisional second article provisions, the sales transactions of the hotels, participations and immovables belonging to the transferred institutions included in the privatization program are performed according to the legislation provisions abolished with this Law until a Administrative Board is established for the Institution. References in the other legislation PROVISIONAL ARTICLE 4- The references made to the Presidency of Social Security Institution, Social Insurances Institution, General Directorate of Social Security Institution for Artisans and the Self-employed and Republic of Turkey General Directorate of Retirement Fund and their boards of directors are deemed to be made to the Social Security Institution or Administrative Board established with this Law. Until the regulations which are going to be prepared as requested by this Law are put into force, the provisions of the current codes and regulations which are not against this Law shall continue to be implemented. Reserved rights and on-the-spot training PROVISIONAL ARTICLE 5- The foreign language condition mentioned in the 30th article of this Law does not apply for the Assistant Inspectors and Assistant Insurance Inspectors who came into office before the enforcement date of this Law. The chief inspectors, inspectors and assistant inspectors shall be provided with vocational training about the duties of the Presidency of Guidance and Inspection within a year after this Law is put into force. 26/29 The transfer of the funds within the scope of the provisional 20 th article of 506 numbered Law PROVISIONAL ARTICLE 6- One person for each of the Funds representing the Fund to be calculated and one person representing the Fund participants shall participate to the commission which is going to be established according to the second clause of the provisional 23rd article of the 19/10/2005 dated and 5411 numbered Banking Law. According to the sixth clause of the same article, for the determination of procedures and principles about implementation the commission to be established is composed of representatives from Ministry of Labour and Social Security, Ministry of Finance, Undersecreteriat of Treasury, Undersecreteriat of State Planning Organization, Banking Regulation and Supervision Agency, Saving Deposit Insurance Fund, Social Insurances Institution, institutions which employ the fund participants and from the funds (one representative from each) and it presents its proposals in written form until the date determined by the Ministry of Labour and Social Security. Personnel of Turkish Union of Chambers and Commodity Exchanges and the institutions which employ the participants of Insurance and Retirement Fund Foundation are represented by Turkish Union of Chambers and Commodity Exchanges established by the 18/5/2004 dated and 5174 numbered Turkish union of Chambers and Commodity Exchanges Law for the transactions about the implementation of the provisional 23rd article of the 5411 numbered Banking Law. PROVISIONAL ARTICLE 7– (Annex: 31/7/2008-5797/6 article.) Under the condition that it is valid for the year 2008 and does not exceed 500 persons in total, without being subject to the restriction (23000 persons) defined in the first clause of the 22nd article of the 14/12/2007 dated and 5724 numbered Year 2008 Central Administration Budget Law, appointments can be made with this Law to 200 vacant positions of Social Security Assistant Expert and 300 vacant positions of Social Security Control Officer in the central and provincial organization of the Social Security Institution which were added by the 190 numbered Decree Law according to KPSS (the Public Personnel Selection Examination)results and the score groups determined by the Presidency. For the appointments to be made from outside of the institution to the positions of Social Security Control Officer, according to the KPSS (A) group examination results and the score determined by the Presidency, candidates whose score is 70 and higher shall be invited to the verbal examination according to the limit of one and half times of the number of the announced positions and the appointments of the successful candidates shall be made by the Presidency. Enforcement ARTICLE 44- This Law shall enter into force on the date of publishing. Execution ARTICLE 45- The provisions of this Law shall be executed by the Council of Ministers. 27/29 ANNEX (I) NUMBERED TABLE SOCIAL SECURITY INSTITUTION GENERAL ASSEMBLY Central Organization Director Deputy Director Deputy Director Deputy Director PRESIDENCY OF SOCIAL SECURITY INSTITUTION ADMINISTRATIVE BOARD Main Service Units Advisory Units Assistant Service Units General Directorates of Social Insurances General Directorate of General Health Insurance General Directorate of Noncontributory Payments Presidency of Strategy Development Department of Legal Consultancy Department of Press and Public Relations Consultancy Department of Human Resources Department of Support Services Department of Construction and Real Estate1 General Directorate of Service Providing Presidency of Guidance and Inspection Department of Actuary and Fund Management Provincial Organization Provincial Directorate of Social Security Social Security Centre 1 ANNEX: Department of Construction and Real Estate – (added by 5797 numbered Law) 28/29 TABLE SHOWING THE DATE OF ENTRY INTO FORCE OF THE LEGISLATION WHICH MAKES ADDITIONS AND AMENDEMENTS TO THE 5502 NUMBERED LAW Legislation No. Articles entering into force on different dates 5538 Provisional Article 1 5597 5673 5754 5797 Provisional Article 2 28, Additional Article 1 and 2 15 Additional Article 1 23, 25, 25/A, 29, Provisional Article 7 and Annex (I) Numbered Table Enforcement Date valid from 20/5/2006 20/5/2006 forward 12/7/2006 23/3/2007, valid from 1/1/2007 forward 2/6/2007 8/5/2008 19/8/2008 29/29