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




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 


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)

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