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16-70 years

Premium payment

60-80 years

Beginning of retirement

Retirement and disability pension

Rights for you

Spouse and child pension

Rights for your family

What are your rights?

Premiums are paid from wage payments from the age of 16 to 70. Each premium payment entitles you to a pension or disability, spousal or child pension according to the fund's rules, but the principle is that the higher the premiums you pay over the course of your life, the more rights you acquire.

On My Pages, you can see what rights you are entitled to today. There you can also estimate your expected retirement based on your current salary and see how your payments will change depending on when you retire.

What can you see on My Pages?

  • Current pension rights
  • Pension rights in other pension funds
  • Estimated rights
  • Effects of postponing or accelerating retirement
  • Pension Calculator
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Membership in Division A

LSR is a closed pension fund primarily for government employees. Everyone who receives a salary according to the collective wage agreements of public employees and works for the state, municipalities, and for related or similar employers has the right to membership in LSR's Division A.

In order to meet the membership requirements for Division A, the employer must pay to the appropriate union (see the list on the side) and the employer's matching contribution to Division A must be 11.5%.

Employers who are not considered public bodies can apply to pay to Division A for their staff if these membership conditions are met.

Unions that grant membership to Division A

  • Member associations of the Federation of State and Municipal Employees (BSRB)
  • Member associations of the Association of Academics (BHM)
  • KÍ
  • Icelandic Nurses Association
Further information for employers

Equal or age-related rights accrual

For the first 20 years that LSR's Division A was in operation, 1997-2017, it was based on so-called equal rights accrual. The way it works is that contributions are equally valuable throughout the working life, whether they are paid early in life or shortly before retirement age. The annual pension entitlement in the equal accrual system is calculated based on a benefit factor, which is currently 1.98% of the salary on which the contributions were paid. This essentially means that a fund member who pays contributions for one year in the equal accrual system of LSR's Division A earns annual pension rights equivalent to 1.98% of their total salary for that year.

In 2017, there was a switch to age-related rights accrual, which is the system used by most other pension funds in Iceland. In such a system, the premiums are more valuable the younger the fund members are when they are paid. This is because a premium paid at a younger age accrues longer than a premium paid later. Special rights tables indicate the value of fund members' premiums according to their age. 

Difference between even and age-related rights accruals

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