2023-11-27

Order on Access for Self-Employed Persons to Retain Membership in the Labour Market Supplementary Pension

The Danish Ministry of Employment and the Labour Market Supplementary Pension (ATP) issued this order to regulate the conditions under which self-employed individuals may retain their membership in the ATP scheme. It mandates that members must have previously contributed for at least three years and earn income equivalent to at least nine hours of weekly work to maintain eligibility. The regulation also establishes specific rules for contribution payments, the termination of membership due to non-payment, and the strict requirements for re-entry after exclusion.

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Order on Access for Self-Employed Persons to Retain Membership in the Labour Market Supplementary Pension

Pursuant to Section 2, Paragraph 2, of the Act on the Labour Market Supplementary Pension, cf. Act Consolidation No. 1110 of 10 October 2014, the following is enacted:

Retention of Membership

Section 1. A member may retain their membership in the Labour Market Supplementary Pension if they become self-employed, cf. Paragraphs 2 and 3.

Paragraph 2. The member must document that they have established themselves as self-employed if the Labour Market Supplementary Pension requests such documentation.

Paragraph 3. Continued membership presupposes that the member has been a member of the Labour Market Supplementary Pension, either as an employee or as a recipient of a benefit mentioned in Section 2a, Paragraphs 1-3, of the ATP Act, for a total of at least 3 years, and in addition has paid contributions equivalent to at least 3 years' contributions, and that the member as a self-employed person has earned an income equivalent to at least 9 hours of weekly employment at the hourly wage used for calculating contributions for employees, if the working hours are unknown.

Obligation to Pay Contributions

Section 2. A self-employed person who retains membership must pay contributions from the 1st of the first month following the receipt of the request in the Labour Market Supplementary Pension.

Paragraph 2. The obligation to pay contributions ceases if the self-employed person is exempted from membership pursuant to Section 4, Paragraph 1, or is excluded from membership pursuant to Section 4, Paragraph 2.

Paragraph 3. No contributions are paid for months where the self-employed person is out of the labour market.

Payment of Contributions

Section 3. The self-employed person must use a payment channel designated by the Labour Market Supplementary Pension. This can be Betalingsservice, Informationsservice, or another corresponding payment solution. The Labour Market Supplementary Pension will send a demand via Digital Post if payment is not made via one of the mentioned methods.

Paragraph 2. The contributions fall due for payment on 1 February, 1 May, 1 August, and 1 November for the preceding quarter. If the contributions fall due for payment on a bank holiday, the due date is deemed to be the next following banking day.

Termination of Membership

Section 4. The self-employed person may be exempted from membership with effect from the end of the month in which a request to this effect is received in the Labour Market Supplementary Pension.

Paragraph 2. A self-employed person who does not pay outstanding contributions is excluded from continued membership as a self-employed person, cf. however Paragraph 5. The exclusion occurs after the second payment reminder and is communicated in writing by the Labour Market Supplementary Pension. The exclusion has effect from the time when contributions have been paid up to that point.

Paragraph 3. The Labour Market Supplementary Pension cannot refund contributions that have rightfully been paid by a self-employed person.

Paragraph 4. A person who is exempted from membership in accordance with the provision in Paragraph 1 may re-enter as a self-employed person on the 1st of the month after the Labour Market Supplementary Pension has received a request to this effect. Re-entry presupposes that the self-employed person has contributed to the Labour Market Supplementary Pension either as an employee or as a recipient of a benefit mentioned in Section 2a, Paragraphs 1-3, of the Act on the Labour Market Supplementary Pension throughout the period of exemption.

Paragraph 5. If a person is excluded from membership pursuant to Paragraph 2, they may only re-enter as a self-employed person if the person has again, in total for at least 3 years, been either employed as an employee or received a benefit mentioned in Section 2a, Paragraphs 1-3, of the Act on the Labour Market Supplementary Pension after the exclusion, and contributions equivalent to at least 3 years' contributions have been paid. The Labour Market Supplementary Pension may in special cases permit re-entry, even if these conditions are not met.

Entry into Force etc.

Section 5. This Order enters into force on 1 January 2024.

Paragraph 2. Order No. 1059 of 11 November 2009 on access for self-employed persons to retain membership in the Labour Market Supplementary Pension is repealed.

The Labour Market Supplementary Pension, 27 November 2023 Torben M. Andersen / Martin Præstegaard 27 November 2023. No. 1375.

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