Disability Pension

In addition to acquired entitlement, a fund member may be entitled to a disability pension based on an extrapolation of what can be assumed to have become his entitlement with continued premium payments until the age of 65. The conditions for extrapolation entitlement are the following:

• Fund member has paid premiums to the fund at least three of the previous four calendar years and at least ISK 157,435 each of these three years. If a fund member has worked regularly part-time during the period, it shall be assumed that the minimum contribution was at least ISK 104,957. The above-mentioned amounts change in accordance to the change in the consumer price index, based on December 2023.
• Fund member has paid premiums to the fund in at least six months in the preceding twelve months.
• Fund member suffered a loss of income caused by work impairment.
• Fund member is not to blame for work impairment due to excessive use of alcohol, drugs or other substance abuse.

If a fund member has changed jobs and for that reason started paying premiums to the fund in the last 24 months before the work impairment, Festa is not obligated to preform extrapolation, if the job change can be attributed to worsening health, which led to the work impairment.

When calculating the loss of income, the disability pensioner's employment income, pension and benefit payments from social security and other pension funds, and collective agreement-based insurance benefits that he enjoys due to his disability must be taken into account. The ruling on pensions benefits, must specify which wage income is used as the basis for the calculation. This should ensure that the fund member is informed about the income level that might reduce his disability pension.
 

A fund member who applies for a disability pension or benefits from such a pension must provide the fund with all the information about his health and employment income that is necessary to judge his right to a pension and, if necessary, undergo a medical examination by the fund's medical consultant. If sufficient data and information are not received from a fund member and he does not comply with the fund's recommendations in this regard, pension payments may be postponed, canceled or the application dismissed.

Upon receiving the opinion of the medical consultant, the fund can require the fund member to undergo rehabilitation, to be eligible for the payment of disability pension. Reassessment of work impairment should be done after rehabilitation.

Disability pension is canceled at the age of 67, as well as if work ability increases or income increases so that the conditions for extrapolation are no longer met.

More information on disability pension can be found in the fund's articles of association.