If you are foreign citizen moving out of the country, you might be able to get a refund on your pension fund contributions. However, if you are a citizen in one of the following countries you may not apply for reimbursement of pension contributions upon moving away from Iceland.
If you are not allowed to apply for a reimbursement now you will have to apply through the State Social Insurance Administration in your country when the time comes for pension payments. The State Social Insurance Administration will forward the application to the corresponding government agency abroad and handle relevant communications regarding to pension payments.
You can always contact us if you have any questions in the future.
The right to the so-called extrapolated calculation of a disability pension is cancelled one year after moving, in addition to the cancellation of a child's pension. In the event of a fund member obtaining the right to extrapolated calculation upon moving away from Iceland, it will take six months to reinstate such rights after restarting contributions.
In the cases where a foreign citizen has the right to apply for reimbursement, the following rules shall apply:
| Age | Payment ratio |
| 16-29 | 100% |
| 30-34 | 95% |
| 35-39 | 90% |
| 40-44 | 85% |
| 45-49 | 80% |
| 50-59 | 75% |
| 60-64 | 80% |
| 65- | 85% |
Fill out the application form and return it to the fund accompanied by:
In cases where a foreign citizen is entitled to a reimbursement of contributions, the following rules shall apply:
If the period of contribution payments is less than three years, foreign citizens shall recover both their own and their employer's contributions plus indexation calculated with reference to the Consumer Price Index. Reimbursements do not bear interest.
If the period is more than three but less than five years, thus establishing the right to a current valuation of disability benefits, the proportion of recovery shall be based on the following table of the Association of Icelandic Actuaries, where the age of the foreign citizen at the time of recovery is the determinant factor.
| Age | Repayment ratio |
|---|---|
| 16-29 | 100% |
| 30-34 | 95% |
| 35-39 | 90% |
| 40-44 | 85% |
| 45-49 | 80% |
| 50-59 | 75% |
| 60-64 | 80% |
| 65- | 85% |
If the period of contribution payments exceeds five years, and the amount of the contribution is substantial, the repayment shall be in accordance with the assessment of the Fund's actuary.
A reimbursement of contributions will cancel all benefits from the Fund. Income tax is deducted from the reimbursement.
UK citizens are entitled to a reimbursement of contributions made from 1 January 2021. Reimbursements of contributions made before 1 January 2021, when the UK was a member of the EEA, are not permitted.
No refunds are authorised to nationals of countries in the European Economic Area (EEA). EEA countries are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and Switzerland.
No refunds are authorised to U.S. and Canadian nationals.
