The Icelandic Pension Fund is open to all those who may choose the pension fund into which they pay. The fund gives more possibilities to accumulate private savings than a traditional pension fund. The fund better suits both those paying compulsory premiums and those paying into supplementary pension savings.
How does Iceland's pension system compare to other European pension programs?
Iceland’s pension system provides higher gross salary replacement rates than most European programs despite its relatively low costs. Iceland’s pension system is divided into three components which are commonly referred to as the “three pillars approach”.
What are the three pillars of Iceland's pension system?
Iceland’s pension system is divided into three components which are commonly referred to as the “three pillars approach”. The first pillar is publicly provided and income tested benefits which are weighted to inflation. The second pillar is occupational pension funds which are often government mandated.
What is the Icelandic Air Line Pilots Association Pension Fund?
The fund has three mutual insurance divisions, Division A, Division B and Division V (open to all). The fund also operates the Reykjavik Employees’ Pension Fund. EFÍA is the pension fund of the Icelandic Air Line Pilots Association (IALP). The fund is open to all members of IALP.
