Foreign nationals
Foreign nationals who have paid premiums to LSR are entitled to a pension and disability pension in accordance with the premiums paid, as well as having the option of a spouse and child pension if the conditions are met. Such payments must be applied for using forms on My Pages.
Refund of premiums upon emigration
In some cases, foreign nationals who move out of the country can get the premiums they have paid into an Icelandic pension fund refunded. In accordance with law, the following rules apply at LSR:
No refund is granted if the fund member is a citizen and/or has a permanent residence in one of the following countries:
- EFTA countries: Iceland, Liechtenstein and Norway plus Switzerland.
- EU countries: Austria – Belgium – Bulgaria – Denmark – Estonia – Finland – France – Greece – Netherlands – Italy – Ireland – Croatia – Cyprus (Greek part) – Luxembourg – Latvia – Lithuania – Malta – Portugal – Poland – Romania – Slovakia – Slovenia – Spain – Sweden – Czech Republic – Hungary – Germany.
- USA
- UK
No refund is granted if a fund member has dual citizenship, where the second citizenship is within the EEA area.
Foreign LSR fund members
- Accrue pension rights in the same way as Icelandic citizens
- Upon emigration, the accrued rights are retained
- There is a possibility of a refund of premiums upon emigration if conditions are met
Refund calculation
If a foreign citizen is entitled to a refund of premiums, the calculation of the refund depends on how long the person has been paying premiums:
Division A – Premiums paid for less than three years:
The contribution of both the fund member and the employer is refunded in full.
Division A – Premiums paid for three to five years:
The contribution of the last three years is refunded according to the following table, which is based on the age of the foreign citizen. Premiums paid before that, i.e. the premiums that do not give the right to extrapolate a disability pension are refunded without deduction.
| Age range | Refund ratio |
| Age 29 and below | 100% |
| 30-34 years | 95% |
| 35-39 years | 90% |
| 40-44 years | 85% |
| 45-49 years | 80% |
| 50-59 years | 75% |
| 60-64 years | 80% |
| Age 65 and older | 85% |
Division B – Premiums paid for less than five years:
The contribution of both the fund member and the employer is refunded in full.
Division A and B – Premiums paid for five years or more:
Refunds are determined according to an assessment by the fund's actuary.
Upon refunds, premiums paid are calculated in accordance with the consumer price index, but without interest.
Refund of premiums is taxable according to current law.
Necessary documents for a refund application:
- Employer's confirmation of retirement
- Copy of passport
- Copy or confirmation of passport
- Information about account number in an Icelandic bank
- Confirmation of permanent residence in the country concerned