Coverage

Here is a summary of how you are covered with regards to your pension scheme

Pension

 

Old-age pension
Your basic cover - (lifelong annuity pension) monthly disbursements from the age of 60/62 and for the rest of your life.

Age-related lump sum
Your basic cover - a one-time payment payable after you reach age 60/62 at the earliest.

Your flexibilityUntil 31.12.2012 10% of your contribution to your life-long old-age/annuity pension was used for the age-related lump sum unless you had elected not to receive it. If you do choose to receive the age-related lump sum, your life-long pension, and by extension your spouse/cohabitant and child pension, will be lower as they are set as a percentage of your old-age pension. If you decide not to have the lump sum paid out, the funds remain in your life-long pension. From 1.1.2013 funds are only used for lifelong pension.

Expiring annuity pension – Depending on your terms of employment, you can use part of your obligatory contribution for your expiring-annuity pension:

  • Members employed under public-sector collective agreements: You can use up to one-third of your obligatory contribution for your expiring-annuity pensions.
  • Private sector employees with group contract: Option to divide payments among life-long annuity pension and expiring-annuity pension, depending on the collective agreement.
  • Members not employed under a collective agreement: Option to divide payments freely among life-long annuity pension and expiring-annuity pension.

Illness and disability coverage

 

Disability pension
Your basic cover - monthly pension, payable if you lose one-half to two-thirds of your earning capability.

Your flexibility - In general, disability pension is set to 100% of your old-age pension at age 67. Your options for raising or lowering this amount depend on your terms of employment. The pension scheme allows you to choose from 0 - 500% of your old-age pension. If employed in the public sector, your disability pension must be at least 40%, or 500% at most, of your old-age pension. However the disability pension can not exceed 90% of your salary or 70 x your monthly pension contribution.

Half disability pension if your earning capability is reduced by one-half to two-thirds before you turn age 60.

Children’s pension
Your basic cover - monthly pension available for children under the age of 21 if you become disabled.

Your flexibility - The childrens's pension is generally set to a 20% of the highest of old-age pension or disability pension. Depending on your agreement, you can choose a children’s pension set to 0 - 20%.

Disability lump sum
Your basic cover - amount from group insurance which is payable if you are awarded permanent disability pension before age 60.

Your flexibility - A non-negotiable part of group insurance.

Certain critical illnesses
Your basic cover - a lump sum of DKK100,000 payable if you are diagnosed with a critical illness before the age of 67.

Your flexibility - A non-negotiable part of group insurance.

Cover upon death

 

Spouse/cohabitant’s pension
Your basic cover -  monthly disbursements for ten years payable or lifelong to the surviving widow(er), registered partner or cohabitant.

Your flexibility - The pension is generally set to 60% of the old-age pension, but can be changed to between 0-60%. You can also elect to change the pension to a life-long spouse/cohabitant pension, or you can opt out of the coverage entirely.

Children’s pension
Your basic cover -  monthly pension disbursements for children under the age of 21.

Your flexibility - The children's pension is generally set to a 20% of the highest of lifelong or disability pension. Depending on your agreement, you can choose a children’s pension set to 0 - 20%. For members employed under public sector collective agreements the children’s pension, however, must set to at least 14%.

Death benefit
Your basic cover -  amount payable to closest living relatives or your estate if you die before age 67.

Your flexibility - 0 - 240% of the highest old-age pension or disability pension.

Group life benefit
Your basic cover -  payable to closest living survivors if death occurs before age 67.

Your flexibility - A non-negotiable part of group insurance.