I used to be a member of a DC Scheme…it was a non-contributory scheme and my employer made all the contributions on my behalf …i was not required to make a contribution. However, i did make a voluntary contribution of £80.00 for all the years I was a member.
This pension pot grew over time and I transferred into a DB scheme. Now, i recently learnt that Zakat was due on the DC scheme and I am not sure how i calculate the Zakat due on the DC scheme - which is now closed and transferred to DB scheme.
In Sha Allah seeking guidance on this issue
Wa aleykum salam
May Allah bless you.
Usually, it is possible to transfer from a DB scheme to a DC scheme and not the other round.
Can you just confirm that you transferred from a DC scheme to a DB scheme?
The scheme I had was with Aviva called Aviva mixed investment (40-85% shares) S2, I was told this was a stakeholder scheme (is that a DC scheme?)
In December 2017, the transfer value of the Dc scheme was transferred to Career average scheme (local government pension). The local government scheme wrote to me saying the Aviva Scheme has provided me with an additional pension of £2861.19 in the LGPS.
May Allah reward you for your patience. I thought giving the detail will help with my query…about how I calculate any Zakat due on the Aviva Scheme
IN your situation, my opinion to be on the safe side is to make a one off Zakat payment on the money that was transferred to the new scheme. The amount of Zakat based on the figure you provided would be £71.52
And Allah knows best!