Premium payments to Division A
Premium payments to Division A continue from the month after the fund member turns 16 up to and including the month they turn 70.
Please keep in mind that LSR’s Division A is a closed pension fund, and it is important to check that the membership conditions are met before premiums are paid.
Premium base and rehabilitation fund
Premium must be paid to Division A from the total salary. The premium base must include any payments that are taxable income for the fund member, such as daytime wages, overtime wages and any other wages, severance payments, wages, pay for committee work, board salary, payments, benefits and allowances, which are the equivalent of wages. Vehicle allowances, per diems, food allowances and other such payments shall only be counted towards the fee base to the extent that they are not reimbursement of costs incurred.
In addition, the rehabilitation fund is calculated at 0.10% of the total salary, which must also be paid to the fund.
Finalization of declaration reports and payment of premiums
The declaration report must be marked Division A with SAL number 660. Division A's identification number is 550197-3409.
The due date for premiums is the 10th day of the month following the pay period, and premiums must be paid no later than on the last day of the month in which the premium is due, otherwise late interest will be calculated.
LSR offers that a claim is created automatically in your online bank. To request this, send a request to idgjold@lsr.is.
Fund members’ share
4%
Traditional matching contribution from employer:
11.5%
Additional pension premium (see more detailed discussion below)
4.67%
Rehabilitation Fund:
0.10%
More on additional pension premium in Division A:
Employees who have been active fund members in Division A of LSR or Division A of Brú since before 1 June, 2017, are still entitled to equal accrual of pension rights. If these fund members work for employers who are not mostly financed by tax revenue, statutory service revenue or donations, the employers must pay a special additional pension premium in addition to the standard 11.5% employer contribution in order to retain the right.
If this premium is not paid, the rights of the relevant fund member are calculated in age-related accrual and after 12 months without an additional pension premium, the right to equal accrual is cancelled.
The additional pension premium varies from year to year, and a new premium rate takes effect on 1 January each year.
Traditional matching contribution:
11.5%
Additional pension premium 2025:
4.67%
Total contribution of employer 2025:
16.17%
Membership application for Division A
LSR’s Division A accepts new fund members who meet the membership requirements of the division. The employer must fill out an application for membership in Division A, which can be found here to the side. If the employee is already a fund member at LSR or Brú and is entitled to equal accruals, item 5, which concerns a special premium, the so-called additional pension premium, must be filled in. Here you can find more information about additional pension premium in Division A, which is discussed above.