If your employment has ended or you are on leave of absence without pay, contributions will no longer be made to your pension scheme. Once contributions stop, we will send you a digital message, describing what you should be particularly aware of and your deadlines.

Find the reason why your employment has ended and see what happens to your pension scheme and your options.

Your employment has ended and you no longer reside in Denmark

If your employment ends and you are moving from Denmark, you can in the majority of cases have the value of your pension scheme paid out. Contact us to learn more about your options and what you need to do to have your pension paid out.

Tax on termination of pension scheme (surrender)

If you receive the value of your pension scheme as an “early” lump sum, that is if you receive the value before you reach your earliest retirement age under your pension scheme, the lump sum payment will be subject to 60% tax to the Danish Tax Agency. If your pension scheme is established as a section 53 A scheme, the lump sum payment will not be subject to tax.

The tax rate may be lower if the savings are paid out due to disability. This does not apply if an annuity pension scheme is paid out as a lump sum, however. In that case, the lump sum payment is always subject to 60% tax.

ISP Pension will charge you a fee of DKK 730 if you want the value of your savings payed out.

Feel free to contact us to learn more about your options. You can also log on and see your terms and conditions (in Danish only) under “Key Numbers” .

You have a new job in Denmark

If you have taken up new employment in Denmark with a new pension scheme, you may have insurances with more than one provider. The insurances under your pension scheme with us will typically remain effective for 12 months after your final contribution. You can choose to prolong the coverage of your insurance for another 12 months. Your pension scheme will be converted into a paid-up policy when the insurances ceases.

You are unemployed or on unpaid leave

If your employment has ended and you do not have a new job, or if you are on leave of absence – you will typically be covered by the insurances under your pension scheme for a period of time after the contributions to your scheme have stopped.

Before the insurances cease or are reduced, you need to decide what is to happen with your existing scheme. If during this period, you have started your own business, have taken up a new position without a pension scheme, are still on leave of absence or suffer from poor health, you should consider continuing your insurances as personal policies.

The advantage is that you will still be covered in case of illness or death without having to submit new health information.

Your employment has ended due to illness or an accident

It is important that you contact us if you fall ill or have an accident. We can advise you on whether you are entitled to pension benefits and continuation of coverages.

You are approaching retirement

If you have reached an age at which you can receive pension benefits, you can start the benefit payments yourself. You can also contact us and be advised on how to arrange your benefit payments to get the most out of your pension.

If your scheme is converted into a paid-up policy

A paid-up policy means that no further contributions are made to the pension scheme, and benefit payments will be calculated based on the savings under the scheme.

A paid-up policy means that contributions will no longer be made to your pension scheme. Your benefit payments will thus be calculated based on the value of your pension savings. This means that your benefit payments will be reduced as the forecast of your benefit payments will no longer be based on your expected contributions.

Please note that when your scheme is converted into a paid-up policy, cover under the group life insurance will cease. If you have insurances other than the group life insurance, these will also cease or be reduced.

Please contact us if you want to convert your pension scheme into a paid-up scheme before this happens automatically. This may be relevant if you have a new pension scheme and want to avoid double insurance coverage.

Has your employment ended or have you changed jobs?