Iceland’s Lífeyrissjóður Verzlunarmanna (LV), the pension fund for those working in retail, is to increase members’ earned pension rights and lump-sum payments due to strong returns.

Earned pension rights in the fund’s common division will be increased by 10 per cent, which will lead to a corresponding increase in pension payments. The increase is due to a good return on assets in recent years, which has strengthened the fund's actuarial position. Fund members are able to see the effect of the increase in rights on their fund members' website at mitt.live.is.

In addition, an increase to old-age, invalidity and spouse's payments will be implemented in November. At the same time, the fund will pay in a lump sum accrued increase from the end of last year. The one-off payment covers about 21,000 fund members and amounts to just over ISK 1.6bn, or an average of ISK 76,000 for each pensioner, depending on the amount of pension rights earned.

The fund said it was a “special pleasure” for the board and employees of the pension fund to notify members of the increase to earned pension rights.

The average real return on assets over the last 10 years for the fund is 6.7 per cent, the last 20 years 4.5 per cent and the last 30 years 5.4 per cent. At the end of 2020, net assets for pension payments amounted to ISK 1,013bn.

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