Please keep in mind that LSR’s Division A is a closed pension fund, and it is important to check that the membership conditions are met before premiums are paid.

Premium base and rehabilitation fund

Premium must be paid to Division A from the total salary. The premium base must include any payments that are taxable income for the fund member, such as daytime wages, overtime wages and any other wages, severance payments, wages, pay for committee work, board salary, payments, benefits and allowances, which are the equivalent of wages. Vehicle allowances, per diems, food allowances and other such payments shall only be counted towards the fee base to the extent that they are not reimbursement of costs incurred.

In addition, the rehabilitation fund is calculated at 0.10% of the total salary, which must also be paid to the fund.

Finalization of declaration reports and payment of premiums 

The declaration report must be marked Division A with SAL number 660. Division A's identification number is 550197-3409. 

The due date for premiums is the 10th day of the month following the pay period, and premiums must be paid no later than on the last day of the month in which the premium is due, otherwise late interest will be calculated.

LSR offers that a claim is created automatically in your online bank. To request this, send a request to idgjold@lsr.is.

Employees who have been active fund members in Division A of LSR or Division A of Brú since before 1 June, 2017, are still entitled to equal accrual of pension rights. If these fund members work for employers who are not mostly financed by tax revenue, statutory service revenue or donations, the employers must pay a special additional pension premium in addition to the standard 11.5% employer contribution in order to retain the right.

If this premium is not paid, the rights of the relevant fund member are calculated in age-related accrual and after 12 months without an additional pension premium, the right to equal accrual is cancelled.

The additional pension premium varies from year to year, and a new premium rate takes effect on 1 January each year.