Unrestricted private pension savings

• Unrestricted private pension savings are redeemable at age 60 in all payment plans.

Restricted private pension savings

• Restricted private pension savings are paid out between the ages of 70 and 75 in Plan II.
• Restricted private pension savings are paid out between the ages of 70 and 80 in Plan III.
• Restricted private pension savings are paid out between the ages of 70 and 85 in Plan IV.

Designated private pension savings

• Designated private pension is redeemable from age 67. Payout in equal instalments may be made between the ages of 62 and 67.

Mutual division

• Life-long pension is paid out monthly from the age of 70 in Plan I.
• Life-long pension is paid out monthly from the age of 75 in Plan II.
• Life-long pension is paid out monthly from the age of 80 in Plan III.
• Life-long pension is paid out monthly from the age of 85 in Plan IV.

See the fund’s Articles of Association (in Icelandic)

Unrestricted private pension savings

In the event of job-related disability, you are entitled to payouts of unrestricted private pension savings over 7 years, based on 100% disability. Annual payout is lower, and the period of withdrawal is longer in proportion to a lower disability percentage.

Disability pension

You are entitled to a disability pension until the age of 70 if your disability is assessed at 50% or more, you have paid into a pension fund for at least two years and have experienced loss of income due to your disability.

In addition to your disability pension, you will be entitled to an additional disability pension based on extrapolation, subject to certain conditions. In that case, your monthly disability pension will increase based on extrapolation of the pension savings you would have accumulated if you had paid into the fund until the age of 65. You would also earn the right to an old age pension from the age of 70 as if you had paid into the fund until the age of 65.

The right to disability pension is based on earned pension entitlements and projected entitlements provided that the fund member meets certain conditions.

Conditions for extrapolation

• The member has paid into the fund for at least 3 out of the last 4 years.
• The member has paid into the fund for at least 6 out of the last 12 months.
• The member’s annual contribution has amounted to at least ISK 69,899.*
• The member’s loss of ability is not attributed to excessive use of alcohol or drugs.
• A full disability pension is based on a disability of 100% while pension payments are proportional for a 50%–100% loss of ability.
• Continued accrual of old-age pension based on retirement at 65.
• Standard salary for the last 3 years.
• Fund member’s loss of income.
• The disability assessment shall be based on the fund member’s ability to earn wages.
• Disability pension does not exceed the loss of income due to disability.
• No payments in the first three months or if the duration of disability is less than six months.

Documentation accompanying the application

• A copy of a disability certificate with photo from the Social Insurance Administration.
• Tax return for the last three income years.
• Medical certificate.

Child pension

Children of a fund member with a full disability pension are entitled to a child pension until the age of 18. If the disability is assessed at less than 100%, the child pension is proportionally lower. The monthly pension for each child is ISK 15,378* based on 100% disability.

See the fund’s Articles of Association (in Icelandic)

The private pension part of a mandatory pension savings is inheritable upon a fund member’s death

Unrestricted, restricted and designated private pension savings are inheritable according to inheritance law and redeemable upon the death of the fund member. Inheritance law stipulates that private pension be passed directly to compulsory heirs. In the absence of compulsory heirs, the asset passes to the estate.

Spousal pension

A full spousal pension is 50% of earned old-age pension rights at the time of the fund member’s death. Spousal pension rights are earned with regular mandatory contributions.

Child pension

A fund member’s children are entitled to a pension until the age of 18 upon the fund member’s death, provided that the member had paid into the mutual division for at least 24 of the preceding 36 months, earned the right to extrapolated disability pension or claimed old-age and disability pension. Child pension for each child is ISK 20,970* per month.

See the fund’s Articles of Association (in Icelandic)