Q: I am a teacher in a secondary and one thing that is offered to all teachers is the Teacher Pension scheme. such a scheme or any pension scheme deemed as halal, would it be better to opt-out of such schemes? It is the teacher pension scheme offered by the government. Each month an amount […]
Read more...Category: Pensions Fatawa
What elements of my pension do I need to pay zakah on?
Q: What elements of my pension do I need to pay zakāh on? If my pensions is a “zakātable” asset then what do I need to pay the zakāt on? The entire holding (i.e. fund value) or pay zakāt on the annual contribution? Is zakāt payable on my contribution alone or mine and my employer’s […]
Read more...Must defined pension schemes be included for Zakat calculations?
Q: I have a voluntary pension contribution at work. I am able to see the value of my pension pot and I am able to dictate where it is invested in, but as I am not at pensionable age I have no access to that money yet. I am Hanafi and from your research paper […]
Read more...If my wife isn’t working can I make National Insurance contributions on her behalf?
Q: Is it permissible to make voluntary National Insurance contributions for my wife who is not in work and will not be in work for the coming years? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If your wife is unemployed and not receiving any benefits she can pay voluntary class 3 contributions. See:https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions If your […]
Read more...Is the CARE pension scheme offered by Network Rail permissible?
Q: I understand you have answered questions regarding CARE pension schemes and regard it as permissible. However the option (from Network rail) I have been given states that I contribute 7% of my pensionable salary to earn a unit of pension which is 1/60 of the salary. The company states that employee contributions cover 40% […]
Read more...Is the new NHS pension scheme shariah compliant?
Q: The CARE (Career Average Revalued Earnings) is a type of defined benefit pension scheme. A defined benefit scheme guarantees a certain level of benefit at retirement, according to a fixed formula. In this respect it is similar to the current final salary sections of the NHS Pension Scheme. In a CARE scheme your pension is […]
Read more...NHS Pensions schemes
Q: Following the fatwa regarding Local Government Pension Schemes dated August 3rd 2015, does the issue of uncertainty render NHS pensions as impermissible? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: No, NHS defined benefit schemes follow the same rule as the Local Government defined benefit Pension Scheme.
Read more...Is my pension scheme permissible?
Q: I work for the London borough of Newham and I have been opted in to the pension scheme with LGPS (Local Government Pension Scheme). I have heard some pensions are not permissable and would like to know if the LGPS pension scheme is permissable or not. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: […]
Read more...In my Final Salary Pension there is a ‘death in service’ agreement, whereby lifetime assurance cover is payable which is 4 times the salary value. This is paid by the employer an no contributions are made by the employee. Is it permissible for my spouse to receive this lump sum?
Q: In my Final Salary Pension there is a ‘death in service’ agreement, whereby lifetime assurance cover is payable which is 4 times the salary value. This is paid by the employer and no contributions are made by the employee. Is it permissible for my spouse to receive this lump sum? الجواب حامدا ومصليا ومسلما […]
Read more...Please could you comment on the permissibility of a Final Salary Pension Scheme?
Q: Please could you comment on the permissibility of a Final Salary Pension Scheme? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Please visit the following links for further information: https://alqalam.org.uk/wp-content/uploads/pensions-and-gross-uncertainty-revised-V1aa.pdf and http://213.175.220.56/~alqalamo/wp-content/uploads/Zakah-on-Pensions.pdf. The above two links provide background and some of the answers to your questions. However, to answer in brief: Final Salary […]
Read more...Is paying back more to a loan I take from my pension fund considered interest?
Q: I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds. I have a self-administered pension scheme to which I and my partners contribute, the scheme allows us to operate and invest the money at our own discretion as so far as […]
Read more...I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds.
Q: I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds. I have a self administered pension scheme to which I and my partners contribute, the scheme allows us to operate and invest the money at our own discretion as so far […]
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