Upon death

When applying for a spousal or child pension, it is usually best to send the application to the pension fund to which the deceased last paid. The relevant fund then forwards the application to other pension funds where the deceased had rights, and they decide whether the spouse and children are entitled to pension payments from each fund individually and their amount.

However, this only applies to mutual insurance funds, because pension funds do not have information on whether there are credits in private funds run by other custodians. To find out where the deceased paid into a private pension fund, it is best to look at the last payslips. At LSR, it is regularly checked whether deceased fund members have credit in private pension, and heirs are contacted in such cases.

At LSR, it matters whether the deceased had rights in Division A, Division B or both divisions. Different rules apply to how long a spouse and child pension is paid from these divisions, in addition to which, different criteria are used when determining pension payments. 

Pension payments, including spousal pension payments, from Division B are determined based on a reference salary, which is generally the daytime salary that a fund member had at the time of retirement or death. There can be exceptions to that for three types of reasons:

• If a fund member was in a higher paid job for at least 10 years earlier in their working life.
• If a fund member was in a higher paid job than the final job when the right to pension was achieved.
• If a fund member left a higher paid job than the final job due to health reasons.

If any of these apply, it must be stated on the application for a spouse pension and more detailed information must be provided.

If the deceased had rights in Division B and was an active fund member working for an organisation or municipality at the time of death, the spouse can apply for spouse pension payments to be changed according to the successor rule or average rule. If the deceased was a pensioner at the time of death, the spouse can also choose between these two options. You can find more information about the successor rule and average rule here.

The pension is paid for 5 years and its amount is a certain percentage of the pension rights of the deceased fund member.

A spouse may also be entitled to extrapolation, but then the rights of the deceased fund member are calculated as if they had paid premiums until the age of 65.

If the children of the deceased, under the age of 22, are dependent on the spouse pension beneficiary, the full spouse pension is paid until the youngest child reaches the age of 22.

If the right exists, child pension is paid up to the aforementioned age, i.e. until the age of 18 if paid from Division B, but until the age of 22 if paid from Division A.   

Child pension is a fixed amount each month, which changes according to the consumer price index. If the deceased fund member was an active payer with another pension fund at the time of death, it is possible that child pension payments are considered the responsibility of that pension fund. A decision on this will be made after the application for spouse and child pension has been submitted.

The division is that the spouse gets 2/3 and the children 1/3, and the private pension fund is divided even if the spouse has beneficial enjoyment of the joint estate.
At payout, income tax is deducted from private pension savings, but no inheritance tax.

In order to receive private pension savings, you must first apply for the division of private pension using a special form, and it is sufficient for one of the heirs to fill out an application for this. After that division is completed, the heirs can either keep the balance and invest it for longer or apply for a payout. Payment of inherited private pension is not subject to age restrictions.

It is important to register the correct tax bracket to prevent too much or too little tax being deducted from the payments.

It is good to keep in mind that the surviving spouse is permitted to use the personal tax credit of the deceased for 9 months from the month of death. You can request this on the application for spouse and child pension.

If you have any questions or would like advice on next steps, please do not hesitate to contact LSR staff who will assist you as needed.

What is the application process?

1. You fill out an application for a spouse pension on My Pages. If the surviving children of the deceased are dependent on you, you enter their names on the application, which will then also be an application for child pension.
2. LSR staff processes the application and forwards it to other pension funds, if necessary.
3. If additional data or information is needed, you will be contacted.
4. After the application has been processed and a decision has been made on pension rights, you will receive a notification from each fund. The processing time for applications for spouse and child pension at LSR is normally 6 weeks.
5. Payout begins.

What is the application process?

1. You fill out an application for the division of private pension on My Pages. It is enough for one legal heir to apply for partition.  
2. On the application for division, you can choose an investment plan for your part of the private pension fund. You can also request to have the balance paid out in full. Note that income tax is deducted from the payout of private pension.
3. LSR calls for confirmation from the District Commissioner.
4. When information is available, the private pension balance is transferred into the private pension fund of each heir individually and the balance is displayed on the My Pages of each individual.
5. Private pension that has been inherited is available for withdrawal whenever requested with a form for the payout of private pension savings.

What is the application process?

1. You fill out an application for payment     of the private pension savings you inherited.
2. You can choose to withdraw a certain amount of your choice in one lump sum or be paid a certain amount monthly. Remember to check the box "Spouse/child pension".
3. LSR staff processes the application. You will be contacted if further information is needed.
4. Payment is processed according to the application.  Private pension savings are paid out both on Fridays and on the first of every month. You can only receive one payment from private pension each month.