Rules concerning pension and retirement
For employees covered by Finansforbundet’s Standard Collective Agreement.
How is your pension scheme structured, and what options does it give you?
Which insurance covers are included in the pension scheme?
And what should you do when you are about to retire?
Find answers to your questions about pension schemes and retirement.
Disclaimer – English translation
This English version is provided as a service to our English-speaking members.
In the event of any discrepancies or doubt between the English translation and the original Danish text, the Danish version shall prevail.
Through the Standard Collective Agreement (the STOK), you are covered by a collectively based pension scheme for all employees in your company. This means that the company must ensure that at least 16.90% of your pensionable salary is paid into your pension scheme each month. Of this, the company pays at least 11.65%, and you pay the remainder, typically 5.25%, which is deducted from your salary.
In addition, the insurance covers included in the STOK give you access to treatment through your health insurance and compensation in the event of critical illness or death through your Group Life Insurance.
If you are instead covered by one of Finansforbundet’s company agreements (VOKs), a higher pension contribution than 16.90% and/or a lower employee contribution than 5.25% may have been agreed. You can contact your union representative if you have questions about the company agreement.
If you are an insurance representative, you can find the amount of your pension contribution in your local collective agreement/salary agreement.
If you are employed under one of Finansforbundet’s Special Agreements or FinTech Agreements, different rules and pension contribution rates may apply.
Which scheme must you have under the STOK?
Your pension scheme must include both savings and risk cover.
The minimum requirements for, and options for individual selection of, risk cover are agreed locally between management and your employee representative. The same parties also agree on the available options for the investment of the savings component.
Speak with your pension provider about your options. You can always contact either company management, typically HR, or your employee representative if you need information about the pension agreement.
Can you opt out of the risk covers?
You can opt out of the risk covers connected to your pension savings no earlier than the point at which you reach pension payout age, which is typically three years before you become eligible for the state pension. However, this will also depend on when your pension scheme was established. You must always speak with a pension adviser before opting out of the risk covers.
How am I covered by insurance policies?
You have a number of risk covers (insurance policies) through your pension savings scheme, and these covers are listed in your pension plan documentation. If you do not have your pension documents available, or if you have several pension schemes and insurance covers, you can find your information at PensionsInfo.dk.
Here you can view your pension schemes from different pension providers, as well as public benefits such as the State Pension, ATP and early retirement benefits.
In addition to the risk covers included in your pension scheme, you are covered by the STOK’s Group Life Insurance, Health Insurance and Dental Insurance in the following situations:
- Under age 55: DKK 100,000 in the event of death
- Age 55 and under age 63: DKK 500,000 in the event of death
- Age 63 and above: DKK 250,000 in the event of death
- DKK 200,000 in the event of your own critical illness
- DKK 100,000 in the event of a child’s critical illness (children under age 24)
- Treatment through your health insurance
- Dental treatment (dental insurance)
If you are an insurance representative, your employer and the local insurance representatives’ association instead agree on how your insurance covers are structured.
Can you take out collective pension insurance?
As a member of Finansforbundet, you can now take out a collective pension scheme with PFA Pension, through which you can obtain collective insurance covers, such as a lump-sum payment in the event of critical illness and a lump-sum payment in the event of death. We call this scheme MedlemsPlus.
This is particularly relevant for unemployed members or members employed outside the financial sector, where there is no employer-sponsored pension scheme.
Read more about the Collective Pension and Insurance via PFA
Pension and retirement
You have limited options for receiving pension payments before retirement. However, it is possible to begin receiving payments before retirement if you have reached pension payout age, typically three years before state pension age.
Please note that as an employee, pension contributions must still either be paid into your pension scheme or paid out as salary.
In certain situations, it is also possible to terminate the pension scheme and redeem the pension savings. This can happen if:
- Following a medical assessment, you are terminally ill.
- You are no longer employed by the company, permanently leave the Danish labour market, and take up permanent residence abroad.
- You are no longer employed by the company and have reached pension payout age in accordance with Section 1a of the Danish Pension Taxation Act.
- Your savings are inactive and do not exceed DKK 65,500 (2025). The amount is adjusted in line with the contribution ceiling for annuity pensions under the Danish Pension Taxation Act.
If you do not meet any of these conditions, you may apply for an exemption allowing your pension to be paid out, although such exemptions are granted only in a limited number of cases. You can contact your union representative or local branch if you would like to know more about your options.
Contact your pension company and obtain advice on how to make the most of your pension savings. This will help you decide when you wish to stop working. You must resign from your position yourself at least one month before the date on which you wish to stop working.
It is a good idea to inform your company that you are leaving to retire. Many companies offer benefits to retired employees, such as events for pensioners, rental of holiday homes, etc. Some financial institutions also offer employee terms on interest rates and fees.
If your company wants you to retire, it must either reach an agreement with you or dismiss you with the notice period to which you are entitled under the Danish Salaried Employees Act and your collective agreement or employment contract.
A dismissal must be objectively justified, and age is not considered an objective reason. On the contrary, age may provide a certain level of protection, since discrimination on the grounds of age is prohibited.
If you are dismissed, you should contact your union representative, employee representative or Finansforbundet for advice regarding your situation and your rights.
According to the STOK and certain other collective agreements concluded by Finansforbundet, you can have your employer’s pension contribution paid out and opt out of making your own contributions if you are working reduced hours as a senior employee or have reached pension payout age under the Danish Pension Taxation Act.
If you are working reduced hours as a senior employee, you can have the employer contribution paid out as salary based on your previous level of employment. This allows you, as a senior employee working part-time, to partially maintain your previous salary level.
If you wish to have your employer’s pension contribution paid out and/or stop making your own contributions, you should contact your pension provider so that you can receive appropriate advice regarding your pension and insurance arrangements.
The Danish Parliament regularly changes the rules governing the relationship between pension and early retirement pay, and we therefore recommend that you contact your unemployment insurance fund if you need advice.
If you are a member of A&Til, you are welcome to write to akassen@finansforbundet.dk or call our unemployment insurance fund consultant, Susanne Ilsøe, directly on 32 66 14 50.
We do not provide advice on tax matters, so we recommend that you contact the Danish Tax Agency instead.
