Pension transfer to Shariah compliant

Everyday Islamic Finance Personal and Family Finance
#1

Salaams

I transferred my work pension from a conventional fund to a Sharia compliant fund.

However, this was done by the pension provider as a selling off the old fund and purchase of the halal fund. This purchase would have included the profits made from the conventional fund and so there is a risk that this would have included non halal profits in it.

I am particularly worried about this relatively small amount compounding over time to become more, mixed into the halal profits from the Shariah compliant pension.

Is there a practical way of purifying this? Keeping in mind that I was in the non halal pension for 5 years and have been in the halal pension for 3 years.

Thanks

#2

Wa alaykum salaam,

If you can estimate the potential growth and income from non-compliant assets, you could then give that amount as purification.

#3

Asalam Alaikum @Mufti_Faraz_Adam

I am in the same position as this brother/sister.

The amount I need to give away as purification, does that have to come from the pension fund, or can I just give it away from a different source, i.e. my personal bank account? For example, if £100 in my pension fund is from haram sources, can I donate £100 to charity from my personal bank account, instead of taking the £100 from the pension and giving it to charity?

#4

Assalaamu alaykum,

It can come from another source. It is not necessary for it to come from the pension itself.