Graham Peacock - Carey Pensions UK
UK fully Sharia-compliant
qualifying workplace pension scheme
The Islamic Pension Trust
provided by Carey Pensions
Providing workplace pensions and auto-enrolment
solutions for employers requiring a Sharia compliant
proposition for their workers
• May 2014 – Islamic Bank of Britain plc (Al Rayan Bank Plc from Dec 2014)
announced that it has accredited a fully Sharia compliant auto-enrolment
Pension Scheme: the Islamic Pension Trust.
• The Islamic Pension Trust was developed by Carey Pensions UK to address
the need for a truly Sharia compliant pension scheme which also to
meets the criteria for automatic enrolment, as defined by the
• This means that employers in the UK can meet their legal obligation to
automatically enrol eligible Muslim employees into a qualifying workplace
pension scheme, without compromising their religious beliefs.
The Islamic Pension Trust
Demand for a Sharia-compliant company pension scheme
in the UK
• Driven by the ongoing implementation of auto-enrolment and the
demographics of the Muslim community.
• Eligible employees – i.e. those who are not in a company pension
scheme, earning more than £10,000 a year (2014/2015) and aged over 22
but under State Pension Age – represent a large proportion of the Muslim
• IBB’s (Al Rayan Bank Plc from Dec 2014) analysis suggests that 72% of
adult Muslims are aged 18-45, compared to 51.5% for the whole of the
UK, and 59.1% of British Muslims are in full time employment, compared
to 50.3% of the overall UK adult population.
• The automatic enrolment legislation in 2012 presented a dilemma for
employers with Muslim workers.
• In the absence of a fully Sharia compliant scheme to use for auto-
enrolment, complying with the law required enrolling employees in a
conventional pension scheme.
• As Islamic law prohibits the payment and receipt of interest and
promotes profit sharing, Muslims are prevented from investing in some
equities and therefore the pension funds that contain them. Whilst
shares and dividends are acceptable under Islamic law, speculation is
Compliance without compromise
• The Islamic Pension Trust operates on a master trust basis.
• A scheme tailored to the specific requirements of Muslim employees.
• Now possible for employers in the UK to enrol their Muslim employees
into a workplace pension scheme without compromising their beliefs.
• British Muslim employers and charities to provide a fully Sharia
compliant workplace pension that meets all of the Government’s criteria
for an auto-enrolment scheme.
• From 1 May 2014, IBB (Al Rayan Bank Plc in Dec 2014) offered the
scheme to its own employees.
• Investments accredited as Sharia compliant by Al Rayan Bank Plc.
• No income or investment growth is obtained through the payment of
interest or unethical business activities prohibited in Islam.
• Ongoing compliance of the Islamic Pension Trust is guaranteed through
continued audit by Al Rayan Bank’s Sharia Compliance Officer and an
independent panel of respected Sharia Scholars, the Sharia Supervisory
• The Islamic Pension Trust provides investors with access to a series of
investment portfolios that are held in a Sharia compliant investment
service, called the Discretionary Portfolio Service (DPS).
• The DPS is provided by SMARTfund Administration Limited, and
accredited as Sharia compliant by Al Rayan Bank Plc.
• Unique investment feature for pension structures which are Sharia
compliant in the UK.
• Portfolios are invested in a range of assets including cash, property,
Sharia compliant bonds known as Sukuks, equities and commodities.
• Carey Pensions prides itself on designing high quality pension products
that are well run, offer value for money and supports employees with
their retirement savings.
• Carey Pensions UK, a long-established, specialist pensions administration
and trustee company, which offers a range of 5 star Defaqto rated
pensions products and has won awards for its customer service
EMPLOYEES STAGING DATES
90-159 May 2014
62-89 July 2014
61 August 2014
60 October 2014
59 November 2014
58 January 2015
54-57 March 2015
50-53 April 2015
40-49 August 2015
30-39 October 2015
Fewer than 30 Phased from June
Carey Pensions auto-enrolment system
• Reduced employer administration costs
• Reduced employer administration resource
• Provision of own branded auto enrolment portal
• Fully functional, fully compliant auto enrolment portal
• Full training on auto enrolment portal
• Full technical manual
• Online access for employers
• Online access for employees
• Technical support to employers
Auto-enrolment System Portal
• Specialist auto-enrolment portal team
• Training for employers
• Assessment of workers
Assessment of pension scheme
• Enrol eligible jobholders
• Opt-in and opt-out, all online
• Electronic communications
• Reports/outputs: Regulator; Payroll;
Providers; Management Information
•Completion of Auto-enrolment Order Form, indicating requirements for The Carey
Workplace Pension Scheme with or without the Auto-enrolment portal option
•Completion of Identity Verification Form
•Completion of Employer Authorised Signatory List
•Pre-payment of set up charges
•Careys create the Deed of Participation (DoP) and Employer agreement
•Employer returns original signed copies
•Careys register the scheme with HMRC and TPR, coordinate with the investment
house and HR/Payroll in order to collect and invest contributions
DWP: 48% small &
no pension plan
This presentation is intended for regulated financial advisers only and is not suitable for retail clients.
All information as of January 2015 unless otherwise stated and is subject to change. Carey Pensions are not recommending any
action based on this material.
Carey Corporate Pensions UK and Carey Corporate Pension Trustees UK Limited do not provide advice and always recommend
that independent professional financial advice is sought prior to making any decision about pension arrangements.
Information within this document is based on current understanding of pension rules and regulation which is subject to change in
This presentation is the property of Carey Corporate Pensions UK Limited and should not be altered, amended or reproduced
without the prior express written consent of Carey Corporate Pensions UK Limited.
Tel: 01908 336010