Fatwa: # 36981
Category: Business Matters
Country: United States
Date: 1st June 2019

Title

Pension

Question

Assalam u Alaikum Wa Rahmatullah Wabarakatahu,

I am a public sector employee in Dallas, Texas, USA. thus unlike 401k plan in private sectoe our contribution to pension plan is deducted from salary involuntarily. And unlike 401k we do not have option to create our own fund portfolio. The public entity deducts a certain amount from our salary and invests in to XYZ fund on which employee doesn't have any control and which may or may not have interest involved. Is it permissible to obtain pension money against these contributions?

Jazkallah Khair 

Answer

In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

If the fund is compulsory and you do not have a say in it, then it will be permissible to accept it. The entire amount you are granted at the time of retirement or resigning will be regarded a voluntary offering/gift from the company to you. Hence, you will not be responsible for the interest therein[1].

And Allaah Ta’aala Knows Best.

Muajul I. Chowdhury

Student, Darul Iftaa

Astoria, New York, USA

 

Checked and Approved by,

Mufti Ebrahim Desai.

______


[1]  جواهر الفقه (3/276)

كفايت المفتي (8/97)

امداد الفتاوى (3/23)

فتاوى دار العلوم زكريا (3/145)

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]