Measuring the performance of personal pension companies after the automatic enrollment system: The case of Turkey

In addition to creating a second retiremen topportunity for the participants, the private pension system (PPS) is a savings system that creates dynamism in the country's economy in terms of transferring resources to long-term investments. In order to increase participation in the Private Pension System, which became operational in Turkey in 2003, some incentives have been put into effect. In the first phase, covering the period from 2003 to 2013, incentives were provided by deducting the contributions paid to the investors from the income tax base. In the second phase, which covers the period after 2013, the practice of providing a state contribution of 25% of the contributions to the participants has been started. Recently, the Automatic Enrollment System, which has made the system based on volunteering some what mandatory, started to be implemented in 2017. In this study, after the Automatic EnrollmentSystem (AES) put into practice in 2017, the efficiency of private pension companies in Turkey has been measured and their performances have been examined. In this direction, Data Envelopment Analysis (DEA) was used for the period between 2018-2020. Asset size, equities and pension technical expenses of pension companies are taken as input, government contribution and pension technical income variables are taken as output variables. As a result of the study, although there is no improvement in the efficiency of pension companies after automatic participation, it indicates that most companies are in effective.