Child's pensions

Child's pensions are paid for your children if you die or become disabled. Foster- and step-children dependent upon you have the same entitlement.

What are the requirements for payment of child's pensions?

The requirements for payment of child's pensions are that the deceased spouse/parent has paid contributions to the pension fund for 2 of the last 3 years or for at least 6 months of the last year prior to decease.

If you are disabled and receive a disability pension from the fund you are entitled to a child's pension if you have paid contributions to the fund for 2 of the last 3 years or if you are entitled to extrapolation. The child's pension entitlement is always the same proportion as the disability pension.

How much is the child's pension?

The child's pension is currently around ISK 20,000 per month for each child and is paid until the child reaches 20 years of age. Child's pensions are inflation-indexed with reference to the CPI.

A child's pension may be reduced if paid in tandem with a reduced disability pension. It may also be reduced if the member's annual contributions have not amounted to at least ISK 80,000* during the reference period prior to the parent's death.

*80,000 is the basic reference amount and must be inflation-indexed at the beginning of each year using the CPI, with the base index 230, see Art. 16.8 of the fund's Articles of Association.

To whom is a child's pension paid?

A child's pension following the death of a parent is paid into the child's account; a child's pension due to disability is paid to the person receiving the disability pension.