Role of the fund
The principal role of LSR is to pay pensions to its members upon retirement and throughout their lives and to ensure their families with a pension following a loss of income due to an impaired ability to work or due to death. The fund receives contributions and invests them in order to meet the liability regarding old-age pension, disability pension, spouse’s pension and children’s allowance. Furthermore, the fund grants loans against a mortgage to fund members and accepts and invests voluntary pension savings.
In 2024, LSR had 31,997 active members on average while 25,901 members received pensions and other benefits on average. The fund pays over one-third of all pensions and benefits paid by Icelandic pension funds. LSR operates in three divisions, division A, division B and division S, which is a division for voluntary pension savings. All divisions have the same board but are financially separated from each other.
Return
| 2024 | 2023 | |
| Nominal return | 12.4% | 9.2% |
| Net real return | 7.1% | 1.0% |
| Average five year net real return | 2.8% | 4.0% |
| Average ten year net real return | 4.2% | 4.4% |