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: http://alqalam.org.uk/wp-content/uploads/pensions-and-gross-uncertainty-revised-V1aa.pdf and http://126.96.36.199/~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 pension schemes suffer from gross uncertainty which renders the employment contract defective. However, provided the contracted work conforms to Shariah principles, the employee is entitled to the lesser of the agreed salary (including pension)and a salary that represents the market norm. Such is ritually pure even if it remains a sin to enter in to such a contract. The nature of investment does not directly affect the permissibility of Final Salary pensions as such investments are by the employer for the employer. The employee is simply guaranteed a pension irrespective of how the pension fund performs.