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The pension scheme

The labour market pension scheme is a compulsory scheme. Industriens Pension has currently around 400,000 members in approximately 10,000 companies.

All wage earners covered by the Collective Bargaining Agreement for Industrial Employees are both entitled to and bound to become a member of Industriens Pension. The labour market pension scheme is therefore a collective and a joint scheme.

Pension contributions

The labour market pension scheme of Industriens Pension is a fully funded defined contribution scheme.

Under the Collective Bargaining Agreement for Industrial employees the employer and the employee each contribute a percentage of the individual employee's wage to the pension scheme.

Pension contributions have been raised in every collective agreement since the beginning in 1993. As of 1 July 2009, it is 12 per cent of wages. The annual contribution in 2010 is expected to amount to DKK 6.0 billion.

Benefits

The pension scheme is constructed so that the level of benefits is determined by the agreed contribution percentage. The size of the pensions depends on the contribution made for the individual member.

Retirement

  • Retirement pension
  • Retirement sum
  • Life insurance paid in instalments

Disability

  • Disability sum: DKK 100,000 (standard coverage). Members may change coverage to DKK 150,000.
  • Disability pension
  • Waiver of premium

Death

  • Death sum: DKK 300,000 (standard coverage). Members may change coverage to DKK 0 or DKK 600,000.
  • Insurance paid in instalments
  • Insurance paid in instalments in case of death

Critical disease

  • Sum DKK: 100,000 (standard coverage). Members may change coverage to DKK 0, DKK 50,000 or DKK 150,000.