What is the ruling on teachers' and employees' associations?

Question : Honorable Shaykh! What is the ruling on an association where a number of people gather, and each one pays a sum from his salary monthly, and each month one of them takes it, and so on?

Answer : This association is permissible, meaning, if the employees agree to pay one thousand riyals from their salaries each month, which is given to one person, and in the second month to the second, and the third to the third, and so on until it returns to the first, then there is nothing wrong with it and no issue in it. It is not from the category of a loan that yields benefit, because the lender paid one thousand and took what? He took one thousand. If someone asks, is he not stipulating that they lend to him?
He does not stipulate that they lend to him; rather, the essence of his stipulation is that they return to him what they borrowed. Stipulating the return of a loan is a requirement of the contract, so it is not considered contrary to the guidance of the Prophet (peace and blessings be upon him). Rather, it does not contradict the saying of the Prophet (peace and blessings be upon him) that he prohibited it. A stipulation and a loan.
What is narrated from him (peace and blessings be upon him) that every stipulation that yields benefit is riba (usury or interest), because this man who lent to them on the condition that they return his loan to them did not stipulate a condition in excess of what is required by the contract, because what is required by the contract is that the loan is what? It is returned, and this is closer.