We get this question a lot – particularly since we launched our #wheresmymuslimpension campaign.
People are not sure if their pension is actually halal or not.
So here’s a really really simple guide to help you navigate this.
Are you in a public sector job?
Yes – great your pension is almost certainly halal as it will be a defined benefit (also called final salary) pension. Just double-check with your HR team on this and confirm that this is indeed the type of pension you have. If they tell you you have a defined contribution pension then you need to go to step 2. Otherwise you’re done.
No – okay read on.
Do you know what pension funds your money is in?
Yes – okay great. Go to Step 3.
No – find out. Ask HR. Login to your pension portal. Dig out the papers you got send when you first joined. Do what you have to do.
Does the pension fund your money is in have “islamic” or “sharia” in the name?
Yes – Great you have a halal pension. All done.
No – You probably don’t have a halal pension. Go to Step 4.
Can you log on/call someone and switch to an Islamic fund?
Yes – do that.
No – ask HR to add an Islamic fund to the workplace pension. If they agree, great. If not, read on.
This is where the boxing gloves and legalistic emails come out.
You can try first yourself – tell them that the employer needs to make sure you are properly provided a pension and without an Islamic pension they are doing something against the law. Also, it is contrary to the Equality Act 2010 and a case of indirect discrimination.
If that doesn’t work, drop us a line. We’ll help iA.
Once you have a halal pension, buy some rasmalai and send it to us.