Brú Pension Fund (Brú lífeyrissjóður) in Iceland is taking over LSA pension fund, as consolidation in the country’s pension fund sector continues.
Brú, which covers municipal employees including teachers, said this week its board and the Akureyri Employees Pension Fund (LSA) has approved the merger of the funds effective 1 January 2025.
LSA, which is much smaller than Brú with ISK14.6bn (€103m) in assets at the end of 2024 compared with Brú’s ISK557.8bn, will merge into the fund’s new division E, it was announced.
Up to now, LSA has been operated as a separate pension fund by Akureyri-based pension fund Stapi under an agreement.
Brú said: “The basis of the merger is that the rights and entitlements of LSA fund members will remain unchanged, as will the Town of Akureyri’s guarantee.”
The two funds signed a declaration of intent on the merger plan just before Christmas last year, with the idea being that LSA’s assets and liabilities would be completely separated from Brú’s assets and liabilities.
Brú already has three mutual insurance divisions – Division A, Division B and Division V — which are open to all.
The merger of LSA into Brú is the latest move in the gradual consolidation of Iceland’s occupational pension funds. Since 1980, the number of pension funds in Iceland has narrowed to 21 funds from 96.
In 2024, the Reykjavik Employees’ Pension Fund (Lífeyrissjóður starfsmanna Reykjavíkurborgar) merged with Brú.
At the end of September, two pension funds Almenni and Lífsverk signed a deal to merge.
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