Legal summary of Lydia Seymour (Counsel)’s advice following receipt of Sharia Law and the LGPS report

After considering the initial legal advice of Lydia Seymour (Counsel) on the issue of members opting out of the LGPS on the basis of their (principally Islamic) religious belief, the Board commissioned Mufti Faraz Adam of Amanah Advisors to produce a report into the relationship between Sharia Law and the LGPS. The author’s expertise in Islamic finance and legal principles shaped his advice on whether the LGPS is Sharia compliant, and the range of views that are likely to be held by Muslim members and potential members.

Mufti Faraz Adam’s report concluded as a part of the contractual arrangement between employer and employees, Muslim employees can continue to contribute to, and benefit from, the excellent benefits offered by the LGPS. A summary of the underlying rationale can be found on the SAB homepage (story dated 23^rd January 2024).

The Board approached Counsel following the receipt of this report to update her initial legal advice on the outstanding questions from her 2022 advice. The key messages from her advice are that the legal risk of a case being successfully brought against a scheme employer in an Employment Tribunal on the basis of indirect discrimination, or a judicial review being brought against an administering authority or the Department for Levelling Up, Housing and Communities (DLUHC) for breach of the public sector equality duty, remain extremely low. The summary of Counsel’s advice can be found here