Brú Municipality Employee Pension Fund is a pension fund for people employed by and working for municipal authorities. It was previously called the Municipality Employee Pension Fund until the name was changed in June 2016.
The Fund was set up on 28th of July in 1998, by means of agreement entered by the Associations of Academics (BHM), The Federation of State and Municipal Employees (BSRB) and the Icelandic Teachers' Union (KÍ) on behalf of the unions concerned, and by the Icelandic Association of Local Authorities. Older municipality pension funds were closed to new members at this time.
> See an overview of societies that have a membership with Brú Pension Fund
Compulsory membership
Employees of municipalities belonging to BHM, BSRB and KÍ are contractually bound to be members of Brú. They may choose between Division A and Division V.
Representatives of the founding parties sit on the Fund’s management board, and all members may sit in on annual general meetings of the Fund, speak freely and make proposals on anything to do with the running of the Fund.
Brú membership divisions
Brú manages three main divisions and oversees all operations for Reykjavík Employee Pension Fund since June 1999.
Division A
Employees of municipalities that have a collective wage agreement with BSRB, BHM and KÍ have a right to membership in Brú Pension Fund.
- As of 1st July 1998, employees are members in Division A.
- Older employees have a right to a membership in Division A.
Division V
Division V is open to everyone and provides comparable rights to pension funds in the general pension fund system. Members in Division A can choose to move to Division V.
Division B
Division B of Brú Pension Fund was founded in the summer of 2013 with the joining of five closed municipal Pension funds. Two more closed municipal funds joined in 2017 and 2018. These were:
- The Hafnafjörðurkaupstaður Employee Retirement Fund
- The Akraneskaupstaður Pension Fund
- The Neskaupsstaður Pension Fund
- The Húsavíkurkaupstaður Employee Pension Fund
- The Vestmannaeyjarkaupstaður Pension Fund.
- The Reykjanesbær Retirement Fund (joined the 1st of January 2017)
- The Kópavogsbær Employee Pension (joined in 1st of January 2018)
LsRb
Brú Pension Fund has managed Lífeyrissjóður starfsmanna Reykjavíkurborgar since the 1st of June 1999. The fund was originally founded in 1930 and was closed off for new members on the 1st of July 1998.