The boards of Iceland’s Gildi Pension Fund and Festa Pension Fund have entered discussions about a potential merger.
The talks will examine, among other things, whether a merger is a beneficial option for members of both funds.
They will also assess whether a merger could result in increased economies of scale, improved service, and a stronger fund for the future.
“It is clear that the funds are similar in nature and structure, including having a very similar rights system and articles of association,” the pension fund boards stated.
If the merger goes through, the new pension fund would be the second largest in Iceland, with around ISK 1,600bn in assets, based on the funds’ positions at the end of 2025.
The discussions continue the trend in Iceland of pension fund consolidation, with several mergers having occurred over the past 12 months.
These include the mergers of Frjálsi Pension Fund and the Pension Fund of the Icelandic Dental Association (LTFÍ), Lífsverk and Almenni pension funds, and Akureyri Employees' Pension Fund (LSA) and Brú Pension Fund.
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