Fatwa

NAPSA PENSION PAYOUTS

Question

NAPSA is offering a pre retirement benefit where a contributor has the choice of withdrawing 20 per cent of his contributions plus index (interest inclusive).

Is it permissible to take the indexed amount which NAPSA’s posters refer to as interest?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Since NAPSA contributions are mandatory and the contributions are invested in avenues that are beyond the control of the contributor, the entire amount paid out by NAPSA is halaal.

The indexed amount will not be considered interest but a gift to the contributor.

And Allah Ta’āla Knows Best

Mufti Nabeel Valli

Darul Iftaa Mahmudiyyah

Lusaka, Zambia

www.daruliftaazambia.com