MemberFunds

MemberFunds

• On payment of lifelong retirement pension, a non-guaranteed supplement is paid for as long as the retirement pension benefits are paid. MemberFunds are not paid together with disability, spouse’s and children’s pension benefits.
• On payment of an annuity certain in P+, former JØP, a non-guaranteed supplement is paid for as long as the pension benefits are paid. You can see how long the pension benefits are paid on the pension statement. If you die before the entire amount is paid, the remaining amount is paid to the estate as a lump sum. The payment is subject to a 40 percent taxation.

MemberFunds (15 years) in P+, former JØP

MemberFunds (15 years) are paid for 15 years as a non-guaranteed pension supplement. If you die before the entire amount is paid, the remaining amount is paid to the estate as a lump sum. The payment is subject to a 40 percent taxation.
 

On the pension statement you can see the supplements included in your pension scheme.

For the present, we set aside 2 percent of contributions, single contributions and transfers to MemberFunds.

However, this does not apply to payments to:

• Market rate savings schemes.
• P+ Regulations 1983, former DIP Regulations 1.
• P+ Regulations 1999, former DIP Regulations 2.
• P+ Regulations 1973, former JØP Regulations 1.
• Retirement insurance P+, former JØP.

According to legislation, all life insurance companies and pension funds must have basic own funds which serve as a collateral for the pension fund’s liabilities.

P+’s basic own funds include the pension fund’s equity, collective special bonus provisions and individual special bonus provisions (MemberFunds and MemberFunds (15 years)).

The basic own funds must cover if the provisions related to the pension schemes exceed the corresponding assets. In other words, the basic own funds must cover the negative results which the policyholders cannot cover themselves. 

The special bonus provisions are, like the equity, responsible capital and cover on equal terms with the equity in case of negative results which the policyholders cannot cover themselves.

As payment for this risk, the equity and special bonus provisions receive a fair risk premium. If previously there was a disbursement to a group of policyholders, this disbursement can be repaid in the following financial year if there is a surplus. This means that possible disbursements are remembered.

The difference between the individual special bonus provisions and the equity is that the individual special bonus provisions are paid with the pension benefits, or if you withdraw your savings from the pension fund. The individual special bonus provisions can be characterized as earmarked equity.

The individual special bonus provisions can be characterized as a special savings scheme without insurance benefits. On the deposit statement you can see the size of the individual special bonus provisions (MemberFunds and MemberFunds (15 years)) and the pension benefits appear from the pension statement.

Interest on MemberFunds is paid at the rate of the pension fund’s return on investments for the investment profile P+ Balance. You can read more about investments and return on investments here

The deposit appears from the deposit statement.

On transfer of the pension scheme to another company both types of MemberFunds are included in the amount transferred. Also both types of MemberFunds are included on payment of a cash compensation for withdrawal.