The proposed merger of Iceland's SL Pension Fund and Almenni-Lífsverk Pension Fund has been agreed by Almenni-Lífsverk’s fund members, with approval still needed from SL Pension Fund at its next board meeting.

In July, the pension funds signed a merger agreement that, if approved, would create the country's fourth-largest pension fund.

A vote took place among Almenni-Lífsverk’s fund members between 22 and 24 September, with 86.6 per cent of votes in favour of the merger, while 13.4 per cent were opposed.

A total of 1,627 fund members participated in the voting, while 66,851 fund members were on the electoral register.

The total voting power of fund members on the register was 724,970,468,173, with votes cast totalling 84,630,300,987 of this power, or 11.7 per cent.

For the merger to be approved, two thirds of the votes cast needed to be in favour, with this condition therefore being met.

The next step in the process is the SL Pension Fund board meeting on 29 September, where the fund’s board decide whether to approve the merger.

If they choose to approve, the proposed amendments to the articles of association will be sent to the Minister of Finance and Economic Affairs for confirmation, after receiving the Financial Supervisory Authority's opinion.

“The proposed merger is also subject to the necessary amendments being made to the Act on Mandatory Pension Insurance and the Activities of Pension Funds, and the Act on the Pension Fund, as well as the Competition Authority confirming the merger,” Almenni-Lífsverk noted.

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