Regulatory Alerts2021-11-30
Order on the Setting of Maximum Guarantee Contributions and Tariffs in the Labour Market Supplementary Pension
The Danish Ministry of Employment issued this order to establish the maximum guarantee contribution at 80% of the contribution after death benefit deductions and define the principles for annual tariffs in the Labour Market Supplementary Pension. The regulation mandates that the guarantee contribution be split into interest and market components, with the market portion capped at 25% and subject to investment returns and a mandatory five-year phase-in period to a guaranteed annuity near retirement age. The order replaces previous regulations and enters into force on January 1, 2022, utilizing a market-value-based interest rate for tariff calculations.
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