Iceland's SL Pension Fund and Almenni-Lífsverk Pension Fund have signed a merger agreement that, if approved, would create the country's fourth-largest pension fund.

The talks between the two funds were first announced in May, with the merged pension fund now set to begin operations on 1 January 2027. Based on assets at the end of 2026, it would have total assets under management of ISK 1.035trn.

The pension funds said the merger is intended to create a larger, stronger fund that is better equipped to meet growing operational requirements while enhancing services for members.

They added that the combination is also expected to improve operational efficiency, helping to reduce costs and support higher long-term returns.

The merger proposal, together with amendments to the funds' statutes, will be considered by members of Almenni – Lífsverk, the SL board and Iceland's Minister of Finance and Economic Affairs in September 2026.

The transaction remains subject to the necessary amendments to Icelandic pension legislation.

Iceland's Minister of Finance and Economic Affairs, Daði Már Kristófersson, attended the merger signing ceremony and signed a declaration of intent committing to pursue the legislative changes required should the merger be approved in line with the funds' governing rules and existing legal requirements.

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