Pension Earnings

[Guest psgross]

In my 24 years in this industry, I have never had this question arise. We have a money purchase pension plan and one of the participants is Muslim. She indicates that the company can make the pension contribution for her, but she will not accept the earnings as it's "against her religion"! Has anyone encountered this scenario? Wouldn't it be a breach of our fiduciary responsibility as Trustee to NOT give her earnings? HELP!

[WDIK]

It would be an error to make a general application of any religious practice, but I found the following exchange on the Muslim American Society website of interest. I hope it will be of some use to you.

Question: I like to know the rulings about retirement plan and life insurance, halal or haram. In the retirement plan there is increase (interest! or profit!), I like to know what I will do with this increase or interest. Thanks.

Answer: ...Dear Sister Mina, 1- Retirement plans are permissible, but you must choose funds and investment that are all permissible in Shari'ah (for instance, avoid bonds, stocks of banks and entertainment industry, etc.) if you manage your own retirement plan, or select funds and investment that has the least of the Haram it it is a company plan. Also when you make any withdrawal you need to calculate the percentage of the return (income) that is generated by non permitted posrtions of the funds and the companies you invest in their stocks, and give away to Muslim charity the same percentage of the amount you withdraw. Remember not all the profit/return of such investment is interest or forbidden for other reasons.