Child Pension
If a fund member dies, his children and adopted children under the age of 18 may be entitled to a child's pension from the fund as further stipulated in the fund's articles of association.
The conditions for payment of child pension are that the deceased has:
a) paid premiums to the fund 24 out of 36 months before the death or 6 months out of the previous 12 or
b) benefit from an old-age pension or disability pension from the fund that corresponds to at least ISK 26,239 per month. The above-mentioned amount changes in accordance to the change in the consumer price index, based on December 2023.
When assessing whether the above-mentioned conditions are met, the fund management is entitled to take into account the substantive rule of art. 12.2. in the fund's articles of association, which deal with special situations.
See the Articles of Association for Festa Pension Fund for more details.
In General
Children's pension is also paid with the children of a fund member who receives a disability pension from the fund, as long as they were born or adopted before the impaired work ability or in the next 12 months thereafter. If the disability of a fund member is estimated to be lower than 100%, the child pension shall be proportionally lower. Child pensions paid due to the disability of a fund member are not canceled even if the fund member reaches retirement age.
Good to Know
- Who receives child pension?
- Can I see in which funds I have entitlements?
- Do I pay tax on child pension payments?
