IslamicFinance.de

Interest-free pension funds have been making inroads into Turkey ever since the requirement necessitating holding at least 30 percent of Treasury bills and bonds in investment portfolios was lifted in 2008.
The Capital Markets Board (SPK) lifted the requirement that 30 percent of the funds in the pension funds pool should be in Treasury bills and bonds. With the new regulation, participation banks have begun offering retirement packages to customers who do not want interest-bearing accounts.
The primary investment tool used in the pool of these pension funds is income-indexed bonds (GES) since the Islamic mode of finance depends on assets and not on money itself. GESs distribute the revenues of the Turkish Petroleum Corporation (TPAO), the State Supply Office (DMO), the State Airports Management General Directorate (DHM?) and the Directorate General of Coastal Safety (KIYEM).
The pensioner will deposit, in most cases monthly, a pre-determined amount of money to the pension fund. The pension fund will then invest this pool of money in various investment assets such as commodities, stocks, interest-bearing tools or in companies which deal in fields prohibited by Islam.