Aoa

DSOP (or Defence Services Officers Provident) Fund is a fund where an officer compulsorily deposits some money to Govt on monthly basis out of his wages / salary. The money is kept by the government and in return a "non-permanent" profit officially titled as "interest" is given back to the officers at the end of each year. The DSOP fund scheme has been setup as a "welfare measure" to the depositors while the wages remain barely meeting ends otherwise. Nevertheless, the profit so earned every year is labeled as "interest" despite being a Muslim country with Muslim Govt and Islamic Constitution. Secondly, historically in "sood", rich party used to exploit the poorer party, in DSOP fund scheme however, there is no exploitation of Govt being done by the depositors as govt is the richer party itself helping its workers.

At this point, there are certain things linked with this Interest money to consider:

1. Apparently, govt does not use this Interest earned money to lend the same to others as loan for further interests. Besides this, less details are known about the projects where profits are earned.
2. The govt changes the profit or interest rates every year as in various Islamic banking profit schemes.
3. Since INTEREST is supposed to be haram in our Islamic country, it seems strange to see open disbursement of interests by a govt org to its employees.
4. Secondly, if the money earned is interest i.e. haram, then apparently all unclaimed money should be burnt publicly since its a known haram commodity and is already disowned by its claimers.
5. However, the govt does NOT burn away / dispose off the interest earned money NOT CLAIMED by the depositors. This may indicate that the money earned is halal PROFIT and NOT INTEREST. Probably the word INTEREST is only being used to misguide the employees.
6. Interestingly, this interest money could be falsely labeled "INTEREST" for its probably PROFIT in reality where its percentage drops signifying losses as well as raises showing profits. Otherwise, it should have been banned in this country being an un-Islamic practice at an official org level.
7. To a logical mind, merely the name PROFIT has been replaced with word "INTEREST" by the govt so that maximum people should disown this money thinking it to be "Sood" and govt would get a legitimate reason to earn voluntary cash from its workers' invested money.
8. In case a person claims this Interest amount, he can always exactly calculate how much money he earned in the name of interest. It means he can dispose it off at will whenever he receives it towards the end of service. Leaving it to govt thinking that niyyat is to not accept sood would neither eliminate the money, nor its responsibility from the depositor who would continue to deposit money on monthly basis nonetheless.
9. Since the monthly deposits will continue to grow, so will the annual interests on his money. In other words, not claiming that interest money won't absolve the depositor of its responsibility but will only deprive him of controlling its disposal.

Question.
1. In the above mentioned scenario, can it be said with full surety that this form of annual return on compulsory deposit is for real "interest" and NOT Profit on invested money? If yes, what makes an annual return interest (sood)?

2. Regardless of what it is, would it not be better to claim this profit / interest money at all costs so that one could retain control over it ? At least, it would let the depositor retain ability to dispose it off suitably later if he wished for so (e.g. lets say give it all in charity etc).

Kindly Advise .. Jazaka Allah for your answer in advance!

Aamir A D