Ownership of a Deceased Person's Pension

Darulifta Ahlesunnat

(Dawateislami)

Question

   What do the scholars of Islam say regarding the following matter: Who has ownership of a pension issued after a person passes away?

بِسْمِ اللہِ الرَّحْمٰنِ الرَّحِیْمِ

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

   The sum of money given by government departments, and some companies upon the death of their employees under the name of ‘pension’, is not part of a salary and the deceased does not have ownership of it. Rather, it is an award and gift from the government or company. Therefore, it is not from the wealth of inheritance. It is in the ownership of whomever the government or company issue it to.

   If it is issued in the name of just one of the inheritors, then only that individual has right over it (generally, if the deceased’s wife is alive, it is  issued in her name, and she will become its owner). The remainder of the inheritors do not have a right to it. Apart from the widow, if amounts are issued on the names of other specific inheritors, they will have the right to that amount and will become its owners.

   The Imam of the Ahl al-Sunnah, Imam Aḥmad Razā Khan رَحْمَةُ الـلّٰـهِ عَلَيْه states:

   According to clear scholarly explanations, the post and pension are also not inherited, after the death of the designated person, the one nominated by the office bearer deserves it and the remaining inheritors will not. It is mentioned in Fatḥ al-Qadīr and Radd al-Muḥtār:

العطاء صلۃ فلا یورث و یسقط بالموت

“A grant is a gift; it is not inherited and ceases upon death.”

وَاللہُ اَعْلَمُ عَزَّوَجَلَّ وَرَسُوْلُہ اَعْلَم صَلَّی اللّٰہُ تَعَالٰی عَلَیْہِ وَاٰلِہٖ وَسَلَّم

Answered By: Mufti Fuzayl Raza Attari

Ref No: FMD-2851

Date: 29th Rajab al-Murajjab 1443AH/3rd March 2022