13.1. A fund member who has not reached 67 years of age who suffers from loss of ability, cf. Art. 13.2, is entitled to a disability pension from the fund in accordance with earned rights under Art. 11 up until the loss of ability, provided they have paid contributions to the pension fund for a total of 24 months and has verifiably suffered a loss of income as a result of reduced work capacity.

Disability assessment and reassessment
13.2. A disability pension is paid if a member is assessed at least 50% disabled by the fund’s medical officer. The percentage of the loss of ability and the timing thereof shall be determined based on information on the previous health history and working ability of the fund member. The disability shall be evaluated every three years or according to the medical officer’s assessment.

13.3. An assessment of disability under Art. 13.2 shall, for the first three years, be based on the fund member’s inability to perform the job which granted them membership of the fund. After that period, the assessment of disability shall be based on the fund member’s inability to perform work in general. 

Rehabilitation
13.4. The fund may, upon the opinion of its medical officer, make it a condition for payment of a disability pension that the fund member undergo rehabilitation which could improve their health.

Projection
13.5. In addition to their earned entitlement as provided for in Art. 11, a fund member is entitled to a projection of entitlement, cf. however, Art. 11.14, if they meet the following conditions:
    a. has paid contributions to the fund for at least three of the previous four calendar years amounting to at least ISK 178,435 each of these three years. The amount changes at the beginning of each year to reflect changes in the CPI used for inflation indexation, with the base index 513.0 points in January 2022;
    b. has paid contributions to the fund for at least 6 of the past 12 months;
    c. has not suffered a loss of ability which can be attributed to abuse of alcohol, drugs or narcotics.
Projection of entitlement shall be based, in addition to earned entitlement, on the entitlement which the fund member would have earned up until 65 years of age based on their average contributions in the three calendar years preceding the loss of ability, cf. Art. 11.17.

13.6. If the fund member’s three-year average referred to in Art. 13.5 is disadvantageous due to illness or unemployment, the average entitlement of eight calendar years prior to the loss of ability can be used as the basis, in such case omitting both the calendar year which is least favourable and the calendar 
year which is most favourable. If the fund member has paid contributions for less than eight years before the loss of ability, calculations shall be based on the relevant number of years. 

13.7. If a fund member’s contributions to pension funds have been so irregular that they have lapsed or been less than ISK 178,435 per year for more than one calendar year after the end of the year in which the fund member reached 25 years of age, the projection time shall be reduced in proportion to the ratio of 
calendar years in which the annual contributions have been less than ISK 178,435 to the total number of calendar years from age 25 until loss of ability. The amount changes at the beginning of each year to reflect changes in the CPI used for inflation indexation, with the base index 513.0 points in January 2022.

13.8. If a fund member has acquired the right to projection as provided for in Art. 13.5, which has lapsed due to a temporary absence from the labour market of up to 36 months due to studies, leave from work, having children or similar reasons, according to the fund's assessment, the right to projection shall be reestablished six months after they begin once more to pay contributions to the fund. The pension fund may request documentation to prove that the member had no income during the said period, and may request other documentation as necessary to assess the conditions of this provision and make such 
provision of documentation a requirement for the application of the Article.

13.9. No disability pension is paid if the loss of ability referred to in Art. 13.2. has lasted less than six months. Disability pension is not paid for the first three months from the loss of ability.

13.10. The disability pension is equal to pension entitlement according to Articles 13.1. and 13.5. multiplied by the disability percentage under Art. 13.2. Reference income, relationship between disability pension and loss of income. 

13.11. The sum of a disability pension and child’s pension shall never exceed the loss of income which the fund member has verifiably suffered due to disability. In assessing loss of income consideration shall be given to the disability pension recipient’s income from employment, pension and benefits from social 
security and from other pension funds, as well as insurance benefits under wage contracts, which the member receives due to the disability. The pension fund may require certificates from the tax office, employer etc. as proof of this. 

13.12. In order to assess whether the disability has resulted in a loss of income, a ruling shall be issued on reference income. This shall be the fund member’s average aggregate income in the last three years prior to the loss of ability, indexed to the date a ruling is issued, cf. the final paragraph of Articles 13.5, 
13.6 and 13.8, on projection. The reference income shall then be indexed from the date of the ruling based on changes in the CPI.

Application for disability pension
13.13. A fund member who applies for or enjoys a disability pension is required to provide the fund with all necessary information on their health and income to determine the entitlement to a disability pension. In addition, disability pensioners are required to inform the fund of changes in their situation, e.g. 
regarding their health or income, insofar as they could affect the right to a pension payment or its amount.

Disability pension vs. retirement pension
13.14. Disability pensions lapse at the age of 67, or earlier if working capacity increases or income increases, with the result that the conditions of Art. 13.11 are no longer satisfied. The retirement pension shall then be determined by adding to the earned entitlement an entitlement as determined in the ruling 
on the fund member’s disability pension until age 65 as provided for in Art. 13.5, in the proportion of the member’s disability percentage at any given time.