The role of LSR, laws, Articles of Association and Policies
LSR’s role is:
- Paying pensions to fund members.
- To insure fund members against loss of income following disability and to promote the financial security of spouses and children in the event of the death of a fund member.
- Receiving premiums and storing information about the rights of fund members.
- To invest the funds of the fund in the best possible way, taking into account the investment policy and taking risks into account.
LSR operates on the basis of the Act on the State Employees' Pension Fund no. 1/1997 and the Act on Obligatory Pension Rights Insurance and Pension Fund Operation no. 129/1997.
LSR’s Articles of Association
The fund operates according to the Articles of Association for the State Employees' Pension Fund. It contains the basic rules for LSR's activities and the pension rights of fund members. The fund's Board of Directors determines changes to the Articles of Association and such changes are presented at the fund's Annual General Meeting. The Ministry of Finance and Economy must also confirm the changes in consultation with the Financial Supervisory Authority before they take effect.
The latest LSR Articles of Association entered into force on 19 April, 2024.
Articles of Association and appendices
LSR’s policies
The fund has established policies and rules that state various main aspects of the activities. You can access the principal ones below.
The Board's documented policy on the risks the Board is prepared to take in operations in accordance with the fund's goals and vision.
Each division of LSR has its own investment policy, which specifies the main focuses that will be followed for the return on the division's funds.
Lays out the guidelines for LSR's involvement in the companies in which the fund invests, such as the selection of board members, assessment of governance, allocation of votes at shareholder meetings and more.
LSR undertakes to pay the same wages and wage terms for work of equal value regardless of gender, and the equal pay policy and equality plan state how this should be ensured.
Describes the fund's main focus areas regarding sustainability. The policy covers both the fund's internal operations and also how the fund considers sustainability in investments.
Specifies the criteria by which the fund shall operate in terms of staff remuneration.
Describes the fund's priorities when it comes to the protection of the fund's information assets and compliance with the government's instructions, as well as stating procedures and responsibilities.
Outlines the collection, registration, processing, storage, and sharing of personally identifiable information about fund members and individuals who visit lsr.is
LSR’s Rules
Promote best practices and communication between the fund's staff and board members and are intended to prevent any kind of conflict of interest and unwanted business practices.
Outline the procedures of the fund's Board of Directors and Managing Director and are intended to support good governance and compliance with the fund's policies and rules.
Describes the organisational structure and basic procedures in the fund's activities.
Highlight the eligibility criteria for LSR's key employees, the procedure for carrying out the eligibility assessment and clarify the information and notification obligations of key employees.