Taxation of pension benefits

Below you can see how the pension benefits are taxed in the event of retirement, illness and death for pension schemes with tax-deductible contributions.

Pension benefits	Taxation
Monthly benefits:
Lifelong retirement pension Supplementary retirement pension Annuity certain MemberFunds (all types) Children’s pension	Taxed as personal income.
Lump sums:
Supplementary lump sum (P+, former JØP) Retirement sum (P+, former DIP) Endowment policy (P+ og P+, former DIP) Retirement insurance	Supplementary lump sums (P+, former JØP), retirement sums (P+, former DIP) and endowment policies (P+ and P+, former DIP) are subjct to a 40 percent taxation. Benefit payments from the retirement insurance are exempt from tax and dues.

Benefits in the event of illness	Taxation
Monthly pension benefits:
Temporary disability pension Disability pension Children’s pension MemberFunds (15 years), (P+ Regulations 2007, former JØP Regulations 2) Term Pension	Taxed as personal income.
Lump sums:
Criticall illness Lump sum disability benefit from the group insurance	Benefit payments are exempt from tax and dues.

Benefits in the event of death	Taxation
Monthly pension benefits:
Spouse’s or cohabitant’s pension Spouse’s pension (P+ Regulations 1983, former DIP Regulations 1) Children’s pension	Taxed as personal income.
Lump sums:
Annuity certain savings Endowment policy saving (P+ and P+, former DIP) Pension life cover (P+ and P+, former DIP) MemberFunds (15 years), (P+ Regulations 2007, former JØP Regulations 2) Term pension (P+ Regulations 2007, former JØP Regulations 2) MemberFunds annuity certain (P+ Ratepension, tidligere JØP, P+ Ratepension Udland, tidligere JØP) MemberFunds annuity certain (15 years), (P+ Ratepension, former JØP, P+ Ratepension Udland, former JØP, Pension Udland P+, former JØP) Benefit to unmarried members, (P+ Regulations 1973, former JØP Regulations 1) Supplement to unmarried members, (P+ Regulations 1983, former DIP Regulations 1)	A 40 percent taxation and a possible estate tax. The estate tax is not applicable, if payment is made to spouse or registered partner *.
Lump sum death benefit from the group insurance Savings on retirement insurance	Benefit payments are exempt from tax and dues. The estate tax is not applicable, if payment is made to spouse or registered partner*.

*If payment is made to children and/or a cohabitant through more than 2 years, the estate tax accounts for 15 percent. In all other cases the estate tax accounts for 36,25 percent (estate tax and supplementary estate tax).