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New members

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Welcome to Brú Pension Fund!

Brú Pension Fund grants fund members rights to lifelong pension. Additionally, fund members earn the right for disability pension, spouse pension and child pension.

Next step is choosing a division that works best for you and your pension plan. Division A is for employees of municipalities that are members of the BHM, BSRB and KÍ labour unions. Division V is open to everyone. Here below, you will find a summary of the information available.

Division A

If you are a new employee of a municipality which is a member of the BHM, BSRB or KÍ unions, you are offered to be a fund member of division A of Brú Pension Fund.

  • In Division A, employers must pay a 11,5% premium on top of your 4% compulsory premium, making a total pension premium of 15,5%.

  • Additionally, you have the option to pay an additional premium of 2-4%, with an additional 2% from your employer, called Additional Personal Pension. You will need to make arrangements with your personal savings holder, as Brú Pension Fund does not manage any personal pension savings accounts.

Information about Division A

Summary of division A rights

  • You can begin receiving pension between sixty and eighty years old.
  • Spouse's pension rights apply up to five years.
    • First three years, 50% of earned rights of fund member.
    • Subsequent two years, 25% of earned rights of fund member.
  • Child pension for children under twenty-two years.
  • Disability pension at 40% loss of energy

Division V

Division V is open to everyone!

> Information about Division V

If you want to become a member of Division V you must submit a form to Brú Pension Fund and notify your employer that you want your premium payments paid to Division V of Brú Pension Fund.

  • In Division V, employers must pay a 11,5% premium on top of your 4% compulsory premium, making a total pension premium of 15,5%.
  • You can choose to allocate premiums exceeding 12% to a private pension savings, called Specified Personal Pension. 
  • Additionally, you have the option to pay an additional premium of 2-4%, with an additional 2% from your employer, called Additional Personal Pension.

Summary of Division V rights

  • You can start receiving pension between sixty and eighty years old.
  • Spouse premium rights apply for two years.
  • Spouse premium rights are 50% of fund member‘s entitlement.
  • Child benefit for children under eighteen years.
  • Disability pension at 50% loss of energy.

Moving from Division A to Division V

If you wish to change from Division A to Division V, you must fill out an application  by clicking the link below or by signing into our application website. You must also notify your employer of the change. If you wish to divide premiums, you must make an agreement with a personal saving fund and submit a copy of the agreement with the application.

> Apply for Division V membership and to divide premiums

Division A or Division V - Comparison of rights

Brú Municipal Pension Fund

Division A

Division V

Earning rights
Returns and duration
15.5% premium
Returns and duration
15.5% premium
12%< option for specified personal pension

Beginning retirement pension
Ages 60 to 80 years 
Ages 60 to 80 years

Spouse's pension
50% of earned rights for three years
and 25% of earned rights for subsequent two years
50% of earned rights for two years

Child's pension
22 years due to disability or passing
18 years due to disability or passing

Disability pension
Considering at least 40% loss of capacity
Considering at least 50% loss of capacity

 

Taking your first steps into the job market?

Those who work in the Icelandic job market accrue rights through pension savings. Premium payments are payments you make out of your wages and are a combination of contributions from you and your employer.  With time you accumulate rights to various pensions, including life-long pension after retirement, disability pension, spouse pension and child benefit.

View your accumulated rights in the Pension Gateway

View information about Pensions at Lífeyrismál.is

Read more on Retirement entitlements here

Common questions about pension

 

Collecting unpaid pension premiums from employers?

  • Brú Pension Fund oversees unpaid premiums from your employer.
  • It is important that you monitor that payments reach us from your employer.
  • Twice per year the Pension Fund will send you an overview of all pension premiums submitted in your name, so you can make sure all payments match your payment slip.
  • When you start a new job with a new employer it is especially important to make sure the first premium payments are being paid to the fund.
  • If premium payments are not paid it is best to contact us as soon as possible, so we can collect the payments.

 

Pension fund loans

Brú Pension Fund offers fund members mortgage loans, where the mortgages is insured by a real estate property. You have a variety of options for different interest terms and payment terms. Here you can read more about Brú Pension Fund loans, and how to apply.

 

Contact us

> E-mail us at lifbru@lifbru.is

> Call us at Tel: 540 0700

> Book a phone call meeting or virtual meeting

> Book an in-place meeting