Rights

  • Will the pension fund assist me if I become unemployed?

    No. Pension funds do not pay a pension due to unemployment.

  • Can I get a refund of paid-in contributions if I leave the fund?

    Earned rights are preserved for the fund or funds you have paid into. When the time comes for pension payments, you must apply for them.

    When foreign nationals leave Iceland, they may be entitled to a refund of their contributions, providing they are nationals of countries outside the European Economic Area (EEA).

  • Am I covered by some minimum rights of the pension fund?

    Pension fund rights depend on the contributions paid into the fund.

    Under law, pension funds ought to ensure a minimum pension, amounting to 56% of the wages, of which a contribution is paid into a pension fund for a monthly pension for the rest of your life, assuming contributions have been paid for 40 years. The same minimum applies for a disability pension. However, a pension to the surviving spouse shall be 50% of the minimum insurance cover. Child allowances are usually a fixed amount and do not depend on the fund member’s wages. Many pension funds grant more rights than the minimum insurance cover stipulated by law, as either coinsurance or a private fund.

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  • Are pension payments indexed?

    Yes, pension payments are indexed. Most pension funds alter the amount of the pension according to changes in the Consumer Price Index (CPI). Some pension funds calculate pensions as a proportion of wages, thus being raised consistent with pay raises.

  • Do rules and rights differ from one pension fund to another?

    Rights vary between pension funds. The Pension Fund Act stipulates the minimum insurance cover of pension funds. Most pension funds operate websites containing information on the rights they are providing. The most detailed information on rights is contained in the articles of association of the pension fund in question.

  • Does the membership in pension funds grant any rights other than to a pension?

    Most pension funds grant to their members loans on all favourable terms against a mortgage in real estate. Credit regulations and terms vary between funds.

  • Having paid into more than one pension fund, can am I get information about my rights from one location?

    Yes, you can contact any of the pension funds into which you have paid and obtain a password to the fund members’ website. There you will find a statement showing all the pension funds into which you have paid.

    In addition, you can view all your rights by visiting the Pension Portal. Pension members can access them on the Pension Portal on the websites of the pension funds, using the same password as for the website of the pension fund in question.

    When the time comes to receive a pension, it is sufficient to apply to one fund since there is a special agreement on relations between the pension funds. Generally, application is made to the fund into which a contribution was last paid, and then the application will be forwarded to the other funds.

  • Is it possible I might lose some rights by moving from one country to the other?

    The right to the so-called extrapolated calculation of a disability pension is cancelled one year after such a move, in addition to a child allowance. In the event a fund member has acquired the right to the extrapolated calculation upon a move from Iceland, it will take six months to reinstate such rights from the start of renewed contributions.

  • Is it possible to transfer rights between pension funds when I start receiving pension payments?

    Pension rights are not transferable between the funds. Pension funds have special rules on communications amongst themselves.

    When it comes to start receiving a pension, it is sufficient to apply to the fund into which a contribution was last paid, and it will break forward the application to other funds into which contributions have been paid.

    • What effect does Brexit have on the payment of contributions at pension funds in Iceland?

      The act that applied before Brexit to the payment of contributions remains in effect through 1 January 2021.

      Thus, the rights acquired at Icelandic pension funds before Brexit are still preserved and paid out under the act in force through January 2021.

       (there was an exit agreement between Iceland and Britain that addressed this question) further information