Pension Benefits


Many pensions have additional benefits and I was wondering whether these are halal.

For example, the NHS pension scheme has a death in service benefit where it pays a lump sum to a nominated beneficiary if the person passes away while they are a member of the scheme. This does not cost any extra money but it does require the pension scheme member to provide the name, address etc of the person they want to nominate. Seems a bit like life insurance.

Many thanks


May Allah bless you.
In regards to the “death in service benefit”, it is permissible to nominate a beneficiary. In reality, it is your money that is being distributed. However, the beneficiary must ensure that the money is distributed among those who are identified as heirs according to shariah ruling.

And Allah knows best!