In the event of impaired ability to work and loss of income due to disability, fund members may be entitled to rehabilitation or disability pensions. For this to be the case, the disability must be assessed as being 50% or more for at least six months. Payments are income based.

The pension is paid for a certain period of time in accordance with the company physician’s assessment. If the disability is not permanent, it must be reassessed regularly. If the disability is permanent, the disability pension is converted to old age pension at the age of 67.

Good to know

  • What is a disability pension?

    In the event of impaired ability to work and loss of income due to disability, fund members may be entitled to rehabilitation or disability pensions. For this to be the case, the disability must be assessed as being 50% or more for at least six months. Payments are income based.

  • When can I be entitled to a disability pension?

    A fund member that suffers a loss of energy, which is considered to correspond to 50% disability or more, is entitled to a disability pension from the fund in accordance with the acquired rights according to Article 10 and the further terms of this section. In addition to acquired rights according to the aforementioned, a fund member has a right to a disability pension based on extrapolation of what can be assumed to have become their rights with continued premium payments according to further terms of this section. The conditions for extrapolation rights are that the fund member has:

    a: paid contributions to the fund at least three of the previous four calendar years and at least ISK 60,000 each of these three years. If a fund member has worked regularly part-time during the period, it should be assumed that the minimum contribution was at least ISK 40,000

    b: paid contributions to the fund for at least six months in the preceding twelve months

    c: suffered loss of income as a result of the loss of energy

    d: is not themselves to blame for energy loss due to excessive use of alcohol, prescription drugs or drugs. If a fund member has changed jobs and for that reason started paying premiums to the fund in the last 24 months before the loss of energy, the right to extrapolation in this fund is not established if the job change can be attributed to deteriorating health that led to the energy loss.

  • Can I have pension rights in multiple funds?

    Entitlement to retirement pension may be available with more than one pension fund. It is usually sufficient to apply for the payment of a pension from the fund into which the latest payments were made. That fund’s employees are responsible for communicating that information to other funds as appropriate.

  • Can I see which funds I have rights in?

    In the Pension Portal on Gildi’s fund member website, you can see the rights you have earned in mutual insurance funds that have been paid into.

  • Do I have to apply to all the pension funds in which I have rights?

    It is usually sufficient to apply for the payment of a pension from the fund into which the latest payments were made. If the fund member has rights in other pension funds, the application is sent to the relevant parties if requested.

    Attention is drawn to the fact that in the pension portal, you can find information about pension rights in other funds, with the exception of private pension savings. You can view the pension portal on Gildi’s fund members website.

  • Can disabled people withdraw private pension savings before the age of 60?

    If a fund member has to retire due to permanent disability, they can apply for a payout of the savings if certain conditions are met.