Iceland’s LV to increase pension rights by 10% due to strong returns

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

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.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.