DENMARK - Arrangements have now been introduced to Denmark's pensions industry which make it easier for workers to transfer their occupational pension from one scheme to another when they change jobs.
Forsikring & Pension, the Danish Insurance Association, said it had modernized the agreement on job switching, and introduced a more flexible policy for transferring accrued benefits.
The main change to the old agreement is workers now have more time to effect a transfer.
New rules, which took effect at the beginning of October, are designed to help pension clients save money and have a better overview of their pensions arrangements, the association said.
"The agreement includes pension schemes which are set up as part of the conditions of employment, but do not apply to individual pension schemes," it said.
From now on, employees switching jobs can take their existing pension to a new scheme linked to their new place of work. This transfer can be made up to three years after leaving an employer whereas the limit was previously two years.
By transferring their pension, employees will then only have to pay one set of administrative costs, the association explained, while, in many cases, a pensions client will also be able to change schemes without having to provide new health information.
People with a series of small workplace pensions with different pensions providers will now be able to consolidate them, and often at advantageous terms, suggested the association.
All smaller workplace pensions - those holding less than DKK43,100 (€5,783) - can be transferred regardless of how much time has passed since leaving a job.
This job switching agreement was reached between pensions institutes on the transfer of pension contracts, and it also helps ensure mobility in the workforce, according to the association.