Rewards & Benefits
We have been approached by Muslim employees and asked to extend pension provision to include Sharia compliant trust funds. What should we do?
What the employer did:
The organisation undertook a review and consulted on a pension scheme that would meet Sharia criteria. The scheme they identified meets some Muslim Sharia requirements but not all. The level of return on this scheme is less than the standard scheme, so if this option is taken forward careful communications will be required. The organisation has not made the final decision to go ahead yet as there could be a prohibitive administration costs.
New Sharia compliant and ethical pension funds have been available since February 2006, and have received positive feedback.