Here is a summary of how you are covered with regards to your pension scheme
Read about your basic coverage and flexibility.
Pension
Old-age pension
Your basic cover - (lifelong annuity pension) monthly disbursements from the age of 60/62 and for the rest of your life.
Age-related lump sum
Your basic cover - a one-time payment payable after you reach age 60/62 at the earliest.
Your flexibility - Until 31.12.2012 10% of your contribution to your life-long old-age/annuity pension was used for the age-related lump sum unless you had elected not to receive it. If you do choose to receive the age-related lump sum, your life-long pension, and by extension your spouse/cohabitant and child pension, will be lower as they are set as a percentage of your old-age pension. If you decide not to have the lump sum paid out, the funds remain in your life-long pension. From 1.1.2013 funds are only used for lifelong pension.
Expiring annuity pension – Depending on your terms of employment, you can use part of your obligatory contribution for your expiring-annuity pension:
- Members employed under public-sector collective agreements: You can use up to one-third of your obligatory contribution for your expiring-annuity pensions.
- Private sector employees with group contract: Option to divide payments among life-long annuity pension and expiring-annuity pension, depending on the collective agreement.
- Members not employed under a collective agreement: Option to divide payments freely among life-long annuity pension and expiring-annuity pension.
Ilness and disability coverage
Disability pension
Your basic cover - monthly pension, payable if you lose one-half to two-thirds of your earning capability.
Your flexibility - In general, disability pension is set to 100% of your old-age pension at age 67. Your options for raising or lowering this amount depend on your terms of employment. The pension scheme allows you to choose from 0 - 500% of your old-age pension. If employed in the public sector, your disability pension must be at least 40%, or 500% at most, of your old-age pension. However the disability pension can not exceed 90% of your salary or 70 x your monthly pension contribution.
Half disability pension if your earning capability is reduced by one-half to two-thirds before you turn age 60.
Children’s pension
Your basic cover - monthly pension available for children under the age of 21 if you become disabled.
Your flexibility - The childrens's pension is generally set to a 20% of the highest of old-age pension or disability pension. Depending on your agreement, you can choose a children’s pension set to 0 - 20%.
Disability lump sum
Your basic cover - amount from group insurance which is payable if you are awarded permanent disability pension before age 60.
Your flexibility - A non-negotiable part of group insurance.
Certain critical illnesses
Your basic cover - a lump sum of DKK100,000 payable if you are diagnosed with a critical illness before the age of 67.
Your flexibility - A non-negotiable part of group insurance.
Cover upon death
Spouse/cohabitant’s pension
Your basic cover - monthly disbursements for ten years payable or lifelong to the surviving widow(er), registered partner or cohabitant.
Your flexibility - The pension is generally set to 60% of the old-age pension, but can be changed to between 0-60%. You can also elect to change the pension to a life-long spouse/cohabitant pension, or you can opt out of the coverage entirely.
Children’s pension
Your basic cover - monthly pension disbursements for children under the age of 21.
Your flexibility - The children's pension is generally set to a 20% of the highest of lifelong or disability pension. Depending on your agreement, you can choose a children’s pension set to 0 - 20%. For members employed under public sector collective agreements the children’s pension, however, must set to at least 14%.
Death benefit
Your basic cover - amount payable to closest living relatives or your estate if you die before age 67.
Your flexibility - 0 - 240% of the highest old-age pension or disability pension.
Group life benefit
Your basic cover - payable to closest living survivors if death occurs before age 67.
Your flexibility - A non-negotiable part of group insurance.
Non Cumpolsory members
As a non compulsory member, you have good possiblities to choose your pension scheme with us.
Your possibilities
The pension scheme consists of the same coverages as the compulsory members, you simply have other options.
- You can use your entire pension contribution for an expiring annuity pension. However the Danish Pension Taxation Law restricts that DKK 52,400 (2016) can be paid to an expiring annuity pension.
- You can deselect the disability pension or choose the disability pension as an optional percentage of the old-age pension.
If you deselect the disability pension, you are also deselecting the childrens pension if you become disabled. This is due to the fact, that childrens pensions is a procentage of the disability coverage until your old-age pension.