16.1. An application for a pension shall be made in the format determined by the pension fund. 

16.2. Pensions are paid at the end of each month for the preceding month.

16.3. A pension shall be paid for the month when the entitlement to it is established and for the month in which entitlement ceases.

16.4. A disability pension and spouse's pension shall not be paid retroactively for more than two years prior to the date an application is received by the fund. Payments under this provision shall reflect the price levels of the time. No interest is paid on pension payments. A retirement pension is paid after the application is received by the fund and not retroactively. If an application for a retirement pension has not been received when a fund member reaches age 70, the fund member shall be sent a letter informing them of their entitlement to a pension.

16.5. A pension is paid to the pensioner (cf. however, Art. 15.5) or the person to whom the pensioner has given a written power of attorney. 

16.6. Pension payments, which are not collected within four years time, shall accrue to the fund.

16.7. If the amount of the pension payment is less than at least ISK 5,576 per month a lump sum payment may be made. This amount changes each month to reflect changes in the CPI used for inflation indexation, with the base index 513.0 points in January 2022. 

17.1. Contributions may be refunded, if application is made, to foreign nationals who cease their fund membership due to emigration from Iceland, provided that such refund is not prohibited under international agreements to which Iceland is a party and that the person concerned was not an Icelandic national 
when the entitlement was established. Any costs of insurance coverage enjoyed by the fund member, and the cost of management according to an actuary’s premises, may be deducted from the reimbursed contributions and interest. Contributions may not be reimbursed to nationals of other member 
states of the European Economic Area (EEA) under existing international agreements.

17.2. If the contributions have been repaid, the pension entitlement based on them will lapse. 

18.1. The Board of Directors may enter into agreements with other pension funds on arrangements for transfer of rights etc. Such arrangements may derogate from the waiting period and benefit provisions of these Articles, in order to prevent the lapse of entitlement when a fund member changes jobs and 
duplication of rights which are not based on past contribution payment time. Furthermore, such arrangements may decide that the independent entitlements in individual funds should not exceed what the total rights would be in a single fund. However, such agreements shall not oblige the fund until they have received the approval of VR and those employers' associations which are members of the fund, cf. the second paragraph of Art. 2 

18.2. The Board of Directors of the fund may, with the approval of the fund's member organisations, take over the assets and liabilities of other pension funds, provided that actuarial calculations are used as a basis for the acquisition. 

Agreements - refund
19.1. Persons requesting membership in the B-division, cf. Art. 4.8, shall conclude a written agreement with the fund to this end, as provided for in Act No. 129/1997, Reg. No. 391/1998 and Reg. No. 698/1998.

19.2. An agreement as referred to in Art. 19.1 may be terminated with two months’ notice. An agreement may be terminated if the rightholder under the agreement ceases the work which was the premise for their payment to the B Division. The termination of such an agreement does not confer a right to reimbursement of the balance or entitlement. If the rightholder so requests, they may conclude an agreement for the transfer of a balance or entitlement upon termination to a party authorised under Act No. 129/1997 to receive private pension savings and enter into a contract there. 

19.3. Balances of rightholders in B Division shall be disbursed as provided for in the following rules, but never earlier than two years after the first payment of a contribution.

    19.3.1. Pension payments from B Division can begin when the rightholder turns 60 years of age. Pension savings together with interest may be repaid either in the form of a lump sum or in equal payments.
    19.3.2. Should the rightholder become disabled and the disability is assessed as 100% by the fund’s medical officer, the rightholder shall be entitled to have their balance in B Division repaid in equal annual payments over a seven-year period or during the period remaining until the beneficiary reaches 60 years 
of age. If the disability percentage is less than 100% the annual repayment shall decrease in proportion to the reduction of the disability percentage and the repayment period shall be lengthened accordingly. If the rightholder wishes, a derogation may be made from the afore-mentioned repayment period if the balance is less than ISK 1,478,386. 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.

    19.3.3. Upon the death of a rightholder, who holds a balance on a private pension account in C Division, the remaining balance is paid to their heirs and is divided between them according to rules of the Inheritance Act on legal heirs. Should a rightholder have no surviving children or spouse, any assets shall accrue to the rightholder's estate without limitation, cf. the second sentence of the second paragraph of Art. 8 of Act No. 129/1997.

19.4. The fund’s Board may offer more than one investment plan in B Division and formulate a separate investment strategy for each individual investment plan, as provided for in Art. 36 of Act No. 129/1997, which the rightholder can choose from in their agreement with the fund. If the fund offers more than one 
investment option for the private pension division, a rightholder may request to transfer between the investment options under the rules set by the fund's Board.

Agreements - refund
20.1. Fund members may allocate contributions of up to 3.5% of the contribution base, in excess of 12% of the contribution base, to a specified private pension, which shall be preserved in C Division, if provision is made for this in a collective agreement or employment contract. Up until 1 July 2018, the 3.5% referred to in the first sentence of this Article shall be 2%.

20.2. Persons requesting membership of the C Division, cf. Art. 4.8, shall notify the fund thereof in a verifiable manner, following the rules laid down by the fund in accordance with the provisions of applicable laws and regulations. Similarly, fund members can send notification that they wish to discontinue part or all of their payments to the specified private pension and the contributions then 
accrue to the mutual insurance division.

20.3. The pension fund shall alter the allocation of the contribution in accordance with the notified decision of the fund member as soon as possible and no later than within two calendar months from the date of verifiable receipt of notification. A decision to alter the allocation of the contribution does not 
affect the contributions already allocated. 

20.4. The rightholder’s balance in C Division is repaid according to the following rules.
    20.4.1. Fund members may begin withdrawals from C Division from the age of 62 years, and payments shall then be distributed at least over the period remaining until the member reaches the age of 67. If the rightholder wishes, aderogation may be made from the afore-mentioned repayment period if the balance is less than ISK 1,478,386. 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.

    20.4.2. Should the rightholder become disabled and the disability is assessed as 100% by the fund’s medical officer, the rightholder shall be entitled to have their balance in C Division repaid in equal annual payments over a seven-year period or during the period remaining until the beneficiary reaches 60 years 
of age. If the disability percentage is less than 100% the annual repayment shall decrease in proportion to the reduction of the disability percentage and the repayment period shall be lengthened accordingly. If the rightholder wishes, a derogation may be made from the afore-mentioned repayment period if the balance is less than ISK 1,478,386. 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. 
    20.4.3. Upon the death of a rightholder, who holds a balance on a private pension account in C Division, the remaining balance is paid to their heirs and is divided between them according to rules of the Inheritance Act on legal heirs. Should a rightholder have no surviving children or spouse, any assets shall accrue to the rightholder's estate without limitation, cf. the second sentence of the second paragraph of Art. 8 of Act No. 129/1997. 

20.5. The fund's Board may offer one or more investment plans in C Division. A separate investment strategy shall be formulated for each individual investment plan, as provided for in Art. 36 of Act No. 129/1997, as subsequently amended. If more than one investment plan is offered, the fund member shall state which plan they select with a notification to the fund in the form which it prescribes. If the fund offers more than one investment plan for C Division, a rightholder may request to transfer between the investment plan under the rules set by the fund's Board. 

21.1. In addition to the information disclosure provided for in Art. 10.8, the key results of the fund's operation shall be made public once each year in an advertisement in a daily newspaper or other effective manner, showing the key figures from its operations, financial situation and actuarial audit. 

22.1. The right to a pension cannot be disposed of or mortgaged.

22.2. Pension payments are exempt from attachment.

22.3. Balances in B and C Divisions can neither be assigned nor mortgaged, either in whole or in part, or disposed of in any other manner than authorised under 28 these Articles or the provisions of Act No. 129/1997, as subsequently amended. 

23.1. Any dispute which may arise regarding these Articles of Association between member associations of the fund, shall be referred to an arbitration panel, comprised of three persons. Each of the disputing parties shall appoint one arbitrator and the third, who shall also be the chairman of the panel, shall be 
appointed by the Supreme Court of Iceland.

23.2. If a fund member does not wish to accept a ruling by the fund’s Board in a matter which the member has referred to it, they may refer the matter to an arbitration panel. This must be done within three months of receiving written notification of the ruling. The arbitration panel shall be composed of three persons, one nominated by the fund member, one by the pension fund and a third, nominated by the Supreme Court of Iceland, who shall chair the panel. The arbitration panel shall rule on the case based on the claims, evidence, cause of action and other information available to the Board when it made its 
decision in the case.If new evidence, cause of action or information is presented when the case is 
being heard by the arbitration panel, the case shall be referred back to the fund’s Board of Directors for review. The fund’s Board is then obliged to re-examine and rule on the case. The ruling of the arbitration panel is final and binding on both parties. The cost of arbitration is divided between the parties according to the panel’s decision, but the fund member shall not pay more than 1/3 of the cost of the arbitration.

23.3. Arbitration proceedings are governed by the Act on Contractual Arbitration. 

24.1. Amendments to these Articles of Association shall be negotiated between VR and the employers' associations who are members of the fund, cf. Articles 2.2 and 5.1.

24.2. In order for an amendment to the Articles of Association to enter into force, it must have the approval of all the member organisations of the fund, cf. Art. 2.2, the approval of the Council of Representatives at the pension fund’s annual general meeting and confirmation by the Minister of Finance.

24.3. A motion to amend the Articles of Association shall be submitted and presented to each of the fund's member organisations a full two months before a decision on the proposal must be available. The motion for an amendment shall be considered by the fund's member organisations after it has been presented at the fund’s annual general meeting. If a motion is aimed at increasing entitlements or if it can be expected to affect the fund's ability to pay pensions, it must be accompanied by actuarial examination of the 
consequences of the proposed amendment for the fund’s solvency.

24.4. The Board of Directors of the fund may amend the fund’s Articles without submitting the amendments to the fund’s member organisations and Council of Representatives, if the amendments result from mandatory provisions of Acts or Regulations. Amendments made pursuant to this provision shall be presented at the fund's next annual general meeting.

25.1. Amendments to the Articles of Association will take effect on, subject to the approval of the pension fund's member organisations and Council of Representatives at the AGM, cf. Art. 24 of the fund's Articles of Association, and confirmation by the Minister, cf. Art. 28 of Act No. 129/1997, as subsequently 
amended.

25.2. Amendments to the Articles of Association that were approved by the Board on 3 March 2022 and at the AGM on 29 March 2022 will enter into force on 1 September 2022. If the Minister has not confirmed the changes before that time, the changes will take effect on the first working day of the month 
following confirmation by the Minister.

25.3. Entitlement tables in Annex A and Temporary Provision 1 shall take effect on 1 January 2023. 

25.4. Pensioners who had a better entitlement under older Articles shall retain their entitlement. This provision shall not affect the introduction of changes according to Annexes A and B to the Articles of Association.

Temporary Provision 1: 
In the years 2023-2025, the outcome of projection of entitlement as provided for in Art. 13.5 shall be multiplied by the respective co-efficient from the following table for those persons awarded a disability pension each year: 
• in 2023 1.06,
• in 2024 1.04,
• in 2025 1.02.
After 2025, the projection of entitlement will be as provided for in Art. 13.5 and this provision will be cancelled. 
Adopted with those amendments approved at the annual general meeting of Lífeyrissjóður verzlunarmanna (LV) on 29 March 2022.

Jón Ólafur Halldórsson, Chair of the Board of Directors
Stefán Sveinbjörnsson, Vice-chair
Árni Stefánsson
Bjarni Þór Sigurðsson
Guðrún Johnsen
Guðrún Ragna Garðarsdóttir
Helga Ingólfsdóttir
Sigrún Helgadóttir
Guðmundur Þ. Þórhallsson, managing director