The Icelandic Dental Association Pension Fund (LTFÍ) unanimously approved a proposal to merge with the country’s fifth-largest pension fund, Frjálsi, at the LTFÍ scheme members meeting last week.
With LTFÍ by far the smaller pension fund of the two, its assets of around ISK11bn (€75m) will boost the ISK562bn Frjálsi’s total assets by around 2%, according to 30 September 2025 figures.
The funds will be merged at the end of this year, with Frjálsi taking over all rights and obligations regarding LTFÍ members at that point, provided the Ministry of Finance confirms the amendments to the LTFÍ articles of association, Frjálsi said.
Frjálsi announced a month ago that the boards of the two pension funds had signed an agreement to merge.
It said the two pension funds were very similar in structure, as members’ mandatory contributions at both funds were divided between separate assets and joint insurance, which it said had given the two funds “a certain special status” over most other pension funds.
This is the latest Icelandic pension fund merger to win member approval in a long-term trend of consolidation in Iceland’s pension fund sector, which has been gathering pace recently.
Following agreement at the end of September to merge, pension funds Almenni and Lífsverk won member approval last week, while Brú Pension Fund recently announced that its merger with the Akureyri Employees’ Pension Fund (LSA) had passed the final hurdle by gaining confirmation from the Ministry of Finance and Economic Affairs.
Only last year, Brú Pension Fund had merged with the Reykjavik Employees’ Pension Fund (Lífeyrissjóður starfsmanna Reykjavíkurborgar).
The number of pension funds in Iceland has shrunk since 1980 to less than 20 pension funds from 96.
LTFÍ, a pension fund for dentists and their spouses, was formed in 1959, and since 2004 has been operated by Icelandic bank Landsbankinn.
Read the digital edition of IPE’s latest magazine
No comments yet