Age Related Rights
The Fund's pension rights are age-related, and are determined by the age of the Fund member when contributions were made.
Younger Fund members thus accrue more rights than older members for the same contribution, because the value of the contribution increases, the longer it has been invested in the fund. Linking entitlement to age also ensures equality between Fund members in their accruement of entitlement over their working life.
Equal accruement of rights
In equal accruement of rights, Fund members accrue the same entitlement for the same contribution, regardless of their age when the contribution is paid. Those Fund members who have accrued rights in the early part of their working life, under the system of equal accruement, can continue within this system up to a certain maximum. Contributions after that lead to accruement of entitlement in age-related accruement.
Equal accruement of rights is based on the average of age-related rights from the ages of 25 to 64 years inclusive, which is ISK 1,293 for each ISK 10,000 contribution.