Participation in a German Pension Fund
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The first question of Fatwa No. ( 15088 )
Q1: In 1977 CE, I traveled from Syria to Germany for the purpose of specializing in orthopedic surgery, and I stayed there for six years. During that time, a portion of my salary was deducted compulsorily as a contribution to a German pension fund that pays the following to each participating doctor: A - A lifetime pension when the doctor reaches the age of sixty-five. B - A stipend for each minor child.
C - A lifetime stipend in the event of a chronic illness that prevents work. D - A stipend for the widow for her lifetime and for the minor children in the event of death. E - A sum of money for the widow immediately after death. When my period of residence in Germany ended in 1983 CE, I had two options: 1 - To terminate my relationship with this fund entirely, in which case only sixty percent of the total amounts I had paid during my period of work in Germany would be returned to me. 2 - To continue paying monthly amounts as before in exchange for the benefits I would receive in the future, as mentioned above. Someone advised me to choose the second option, justifying it on the grounds that returning to Syria is not possible for me for personal reasons, and therefore my family’s situation would be difficult if, for example, I died or became unable to work for some reason, since there is no pension that would reach them. I was convinced by this at the time, and I am still paying a monthly sum. It should be added that the surplus funds accumulated by the fund are
invested, of course, according to the capitalist economic system. In one of the reports issued in 1988 CE, the fund stated that the investment for that year was as follows: 11% in construction and housing. 9% in lending and collecting riba (usury or interest) from it. The rest in the stock market and bonds. Now, if I decide to withdraw from this matter, the fund will pay me only sixty percent of the total amounts I have paid until now. Today, I have decided to return to review my transactions anew and to cancel everything that is haram (forbidden) in our religion. Therefore, I am sending this to you to seek your fatwa (scholarly legal ruling) on the permissibility of my continuing to pay this fund. I would like to add that if I decide to stop paying now, the fund will pay me only sixty percent of the total amounts I have paid during the previous years. I ask for your fatwa with some explanation and detail, and may Allah reward you with good.
A1: Take the first option, which is: to withdraw the sixty percent that you paid to them; because this option is free from riba (usury or interest), along with repentance and seeking forgiveness for what has passed.
Q1: In 1977 CE, I traveled from Syria to Germany for the purpose of specializing in orthopedic surgery, and I stayed there for six years. During that time, a portion of my salary was deducted compulsorily as a contribution to a German pension fund that pays the following to each participating doctor: A - A lifetime pension when the doctor reaches the age of sixty-five. B - A stipend for each minor child.
C - A lifetime stipend in the event of a chronic illness that prevents work. D - A stipend for the widow for her lifetime and for the minor children in the event of death. E - A sum of money for the widow immediately after death. When my period of residence in Germany ended in 1983 CE, I had two options: 1 - To terminate my relationship with this fund entirely, in which case only sixty percent of the total amounts I had paid during my period of work in Germany would be returned to me. 2 - To continue paying monthly amounts as before in exchange for the benefits I would receive in the future, as mentioned above. Someone advised me to choose the second option, justifying it on the grounds that returning to Syria is not possible for me for personal reasons, and therefore my family’s situation would be difficult if, for example, I died or became unable to work for some reason, since there is no pension that would reach them. I was convinced by this at the time, and I am still paying a monthly sum. It should be added that the surplus funds accumulated by the fund are
invested, of course, according to the capitalist economic system. In one of the reports issued in 1988 CE, the fund stated that the investment for that year was as follows: 11% in construction and housing. 9% in lending and collecting riba (usury or interest) from it. The rest in the stock market and bonds. Now, if I decide to withdraw from this matter, the fund will pay me only sixty percent of the total amounts I have paid until now. Today, I have decided to return to review my transactions anew and to cancel everything that is haram (forbidden) in our religion. Therefore, I am sending this to you to seek your fatwa (scholarly legal ruling) on the permissibility of my continuing to pay this fund. I would like to add that if I decide to stop paying now, the fund will pay me only sixty percent of the total amounts I have paid during the previous years. I ask for your fatwa with some explanation and detail, and may Allah reward you with good.
A1: Take the first option, which is: to withdraw the sixty percent that you paid to them; because this option is free from riba (usury or interest), along with repentance and seeking forgiveness for what has passed.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.