Britain's New Pension Authority Will Offer Sharia-Compliant Option

In 2006, Britain enacted legislation to reform its pension system. Among other things, the Pensions Act 2007 created the Personal Accounts Delivery Authority which will create new low cost pension savings vehicles for individuals. (Background.) The London Telegraph reported yesterday that the Authority will offer a Sharia-compliant pension fund as one of the options in order to encourage Muslim participation. Many Muslims who have low-paying jobs or who have recently moved to Britain are thought to have little saved for retirement so far. The Sharia-compliant fund would not invest in financial service firms, or in companies involved in gambling, liquor or pornography industries. Britain's Child Trust Fund already offers Sharia-compliant baby bonds.