The deposit interest rate is the interest rate paid to the average rate pension schemes.
As a main rule, the deposit interest rate is determined annually, but it may be adjusted upward or downward during the year due to e.g. substantial changes the financial markets.
The deposit interest rate is determined on basis of the previous years' actual returns (in DKK) and the pension funds 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 can be divided into:
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