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The deposit interest rate is the interest rate added to the average rate pension schemes. 

Generally, the deposit interest rate is determined annually, but it may be adjusted upwards or downwards during the year due to e.g. substantial fluctuations on the financial markets.  

The deposit interest rate is determined on basis of the previous years' actual returns (in DKK) and the pension fund's financial situation.

Overall, the pension fund has two types of pension schemes:

  • Pension schemes with a deposit interest rate
  • Pension schemes on market rate

The pension schemes with a deposit interest rate include:

Schemes with a non-guaranteed supplementary pension (new schemes):

  • P+ Regulations 2019
  • P+ Regulations 2011, former DIP Regulations 4
  • P+ Regulations 2007, former JØP Regulations 2 and the following pension products in P+, former JØP: annuity certain, retirement insurance, Pension Udland, Ratepensin Udland and supplementary retirement pension (Regulations 2). 

Schemes with only a basic pension (old schemes):

  • P+ Regulations 1983, former DIP Regulations 1
  • P+ Regulations 1999, former DIP Regulations 2
  • P+ Regulations 1973, former JØP Regulations 1 and supplementary retirement pension under Regulations 1

Read more about the supplementary and basic pension here

You can find your deposit interest rate on Min pension under Opsparing.

Generally, the Board determines the deposit interest rate annually on basis of the pension fund's financial situation at the beginning of November. The deposit interest rate may be adjusted upwards or downwards during the year due to e.g. substantial fluctuations on the financial markets.  

 

The deposit interest rate is the annual interest payment of the members' deposits. The different pension schemes have different deposit interest rates. This is due to the different risks linked to the pension commitments on the different schemes. 


The deposit interest rate is determined before tax due to the rules on individual pension return tax which is paid from the individual member's savings after the pre-tax interest rate has been added. 

The pension schemes with a non-guaranteed supplementary pension are:

  • P+ Regulations 2019
  • P+ Regulations 2011, former DIP Regulations 4
  • P+ Regulations 2007, former JØP Regulations 2 and the following pension products in P+, former JØP: annuity certain, retirement insurance, Pension Udland, Ratepensin Udland and supplementary retirement pension (Regulations 2). 


The new schemes in P+, which include supplementary pensions, are adjusted according to a model that combines the best from an average pension scheme with the advantages of a market rate pension scheme. 


The adjustment method makes sure that the members get a fair share of the pension fund's return. As it is the actual returns that are leveled, it implies that the pension benefits can be adjusted both upwards and downwards if the future returns do not meet the expectations. However, the fluctuations are far more modest compared to absolute market rate schemes. This applies both while you are saving up, and when the pension benefits are paid. 


You can read more about adjustment of the pension benefits on basis of the deposit interest rate here


You can read about the supplementary pension here

 

Schemes with an unconditional basis are:

  • P+ Regulations 1983, former DIP Regulations 1
  • P+ Regulations 1999, former DIP Regulations 2
  • P+ Regulations 1973, former JØP Regulations 1 and supplementary retirement pension under Regulations 1


For pension schemes with an unconditional basis, the deposit interest rate may be lower than the basic interest rate, and in that case your pension benefits are not reduced as you have a guarantee. 

 

When interest payment to the deposit does not equal the rates added to the bases, it means that the pension fund must set aside extra funds to be able to meet the guaranteed benefits. These extra provisions are financed by the basic own funds. Again, this means that the pension fund sets aside funds to pay your pension benefits which are calculated on basis of the different basic interest rates. 

 

You can read more about adjustment of the pensions based on the deposit interest rate here