To what extent is it permissible to participate in the Palestinian Pension Fund, which allows participants to obtain loans with an 8% interest rate that returns to the fund, knowing that participation is initially optional and then becomes mandatory for new employees?

Lending with interest is forbidden because it is precisely usury, and this is sufficient to prohibit subscribing to the aforementioned fund. In addition, the insurance system of the fund may be commercial insurance, which is forbidden. Therefore, it is not permissible to subscribe to this fund voluntarily. As for those who are compelled to do so, they incur no sin, and the sin is upon whoever compelled them. In all cases, it is not permissible to borrow from it with interest, due to the hadith (definition): "Allah has cursed the one who consumes usury and the one who feeds it."