Additional Article 1 titled State Contributionhas been added to the Law no. 4632 with article29 of the Law no. 6327. The reason for the prac- tice in question is that the individual retirementsystem has not worked as efficiently as desiredsince the year 2001 in which the Law no. 4632was issued. With the new practice, the state willalso contribute subject to certain conditions to theparticipants who stay within the individual reti- rement system for certain periods of time and incase of leaving the system, the participant willalso be able to receive the amounts paid by thestate for the participant. However, it is required tostay in the system and make savings for a mini- mum of 3 years to be qualified for the contributi- on. On the other hand, there are benefits of thestate contribution system, which is a new prac- tice, for the former participants as well. For ins- tance, periods which will be of advantage to theformer participants who are still in the system interms of income tax have been added since 2013.On the other hand, a number of amendmentswere also made in the tax laws when introducingthe state contribution system; articles 22, 40, 75,86 and 94 of the Income Tax Law as well as theValue Added Tax Law and Inheritance and Trans- fer Tax Laws were also amended. Many aspectsof the system which used to fail have been elimi- nated as a result of the amendments made.On the other hand, state contribution is nota perfect system by all means. Loopholes regar- ding certain aspects of the system cause hiddenexceptions for a number of income elements. Inaddition, it is difficult to say that the state contri- bution system has completely succeeded, becau- se when IRS data for 2013 are examined, it is seenthat although the number of people who join thesystem was increasing, fund collection lagged be- hind the year 2012 in which the practice of statecontribution was not in force.