Question
When my pension fund terminated, I had the money deposited in a preservation fund. Is Zakaat to be paid on this money? It was a voluntary pension fund.
Answer
The amount which was deducted from your salary, on termination belongs to you. The excess above that amount is haraam interest. You have to give the excess as Sadqah without a niyyat of thawaab.
On termination you had possession and control of the money which you deposited into the preservation fund. Therefore, you have to pay Zakaat for the years 2017 to 2023.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 11
- PDF page
- 3
Appears under THE DANGERS OF SMOKING (approximate).