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: The LGPS offered by Newham Council is a defined benefit pension scheme. There is an element of uncertainty as to whether and how pension payments will ultimately be received. However, as this does not lead to dispute it is permitted.
Previously, the Al-Qalam panel had opined that defined benefit schemes were not permissible due to this element of uncertainty. However, after discussion with a very senior teacher of mine we have reviewed and changed our opinion as the uncertainty does not lead to dispute.