Services – Fund VI
Fund VI – Non-Interest Fund
Contributors who want their pensions managed in accordance with their moral, faith belief and values are invited to join our non-Interest fund, otherwise known as fund VI.
Non-interest fund assets are invested in instruments free from speculation, pornography, gambling and other vices that could lead to destruction or loss, otherwise under the Islamic commercial jurisprudence
The basic features are as follows
- Principle of justice is an essential requirement for all kinds of non-Interest financing; the financier and the beneficiary share the actual profit/loss if the contract is equity-based.
- They are restricted to useful goods and services and refrain from financing other harmful activities.
- Interest prohibition in debt and exchange contracts.
- The prohibition of uncertainty or speculative behavior in business transactions.
- The prohibition of any form of gambling, such as, alcohol, tobacco, ammunition manufacturing and adult entertainment institutions; to mention a few.
Eligibility and general principles of the Non-Interest Pension Funds
- Contributors in Funds I, II and III are ONLY allowed to move to Non-Interest Active Fund VI.
- Contributors in Fund IV are ONLY allowed to move to Non-Interest Retiree Fund VI.
- Contributors in Fund III who have reached the retirement age can move directly to Non-Interest Retiree Fund VI instead of Fund IV if they so desire.
- PENCOM shall determine the participation of Micro Pension Contributors in due course.
- Fund VI assets are ONLY to be invested in instruments that are free from speculation and uncertainty that might lead to destruction or loss.
Non-Interest Pension Fund is not simply just an interest-free system but It is a universal system that can operate in developed and emerging markets and takes into account cultural and regional differences.
