Order on Payment of ATP Contributions for Members of Unemployment Insurance Funds and Others

Order on Payment of ATP Contributions for Members of Unemployment Insurance Funds and Others

Pursuant to Section 85 c, paragraph 10, and Section 85 d, paragraph 5, of the Act on Unemployment Insurance and Other Matters, cf. Consolidation Act No. 503 of 11 May 2023, and Section 2 c of the Act on the Labour Market Supplementary Pension, cf. Consolidation Act No. 1110 of 10 October 2014, and upon the recommendation of the Board of the Labour Market Supplementary Pension, the following is enacted:

Chapter 1 Mandatory Payment of ATP Contributions for Members of Unemployment Insurance Funds Receiving Unemployment Benefits or Benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems

The Total ATP Contribution

Section 1. Contributions shall be paid to the Labour Market Supplementary Pension for members of an unemployment insurance fund who receive unemployment benefits under the Act on Unemployment Insurance and Other Matters, or benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems.

Paragraph 2. Contributions shall be paid for each hour for which benefits are paid, cf. paragraph 1.

Paragraph 3. The Board of the Labour Market Supplementary Pension sets the hourly contribution in relation to the annual contribution set pursuant to Section 15, paragraph 1, of the Act on the Labour Market Supplementary Pension. The annual contribution amounts to 2.13 DKK per hour.

Paragraph 4. For members receiving benefits, cf. paragraph 1, the hourly contribution amounts to 200% of the annual contribution pursuant to paragraph 3, corresponding to 4.26 DKK per hour.

The Member's Share of the ATP Contribution

Section 2. One-third of the contribution pursuant to Section 1 is paid by the member who receives unemployment benefits or benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems. The member's share of the contribution for a month is rounded down to the nearest whole DKK amount.

Paragraph 2. The unemployment insurance fund withholds the contribution when paying the benefits.

The Unemployment Insurance Funds' and Employers' Share of the ATP Contribution for Members Receiving Benefits Outside Activation, or Benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems

Section 3. One-third of the contribution pursuant to Section 1 is paid by the unemployment insurance funds for members who receive:

1. unemployment benefits under the Act on Unemployment Insurance and Other Matters, cf. however paragraph 2, or
2. benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems.

Paragraph 2. Notwithstanding paragraph 1, no. 1, the unemployment insurance funds do not contribute to the payment of the ATP contribution that is collectively paid for members of an unemployment insurance fund who receive benefits while participating in job-oriented education under Chapter 9 of the Act on Active Employment Policy or while participating in schemes under Chapters 11, 13, and 14 of the Act on Active Employment Policy.

Paragraph 3. The unemployment insurance funds' share of the contribution pursuant to paragraph 1 for a month is rounded down to the nearest whole DKK amount.

Paragraph 4. To cover the unemployment insurance funds' expenses for financing the contribution, cf. paragraph 1, the unemployment insurance funds may collect a special contribution, which is considered part of the total member contribution to the unemployment insurance fund, cf. Section 77, paragraphs 1 and 8, of the Act on Unemployment Insurance and Other Matters.

Paragraph 5. No contribution may be collected from early retirement pensioners or from members who are exempt from paying contributions pursuant to Section 77, paragraph 10, of the Act on Unemployment Insurance and Other Matters.

Paragraph 6. The Agency for Labour Market and Recruitment calculates, based on an estimate of the number of hours for which benefits are to be paid, cf. paragraph 1, the contribution that, pursuant to paragraph 4, may be collected per member in the coming financial year. The contribution is the same for all unemployment insurance funds. The contribution for part-time insured persons amounts to 2/3 of the contribution for full-time insured persons.

Paragraph 7. The contribution, cf. paragraph 4, is adjusted by an amount corresponding to the surplus or deficit that the contributions paid in the most recently completed financial year have resulted in compared to the total adjusted contribution that, according to the accounts for that year, should have been paid.

Paragraph 8. The unemployment insurance funds' contributions pursuant to this provision are paid to the State in accordance with the rules in Section 10 of the Order on Requirements and Supervision of the Economy and Accounting of Recognised Unemployment Insurance Funds and Other Matters. The contribution amounts to 1/12 of the annual amount for each month, rounded to the nearest whole DKK amount.

Section 4. One-third of the contribution pursuant to Section 1 is paid as a financing contribution by private employers for members who receive unemployment benefits under the Act on Unemployment Insurance and Other Matters, cf. however paragraph 2, or benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems.

Paragraph 2. Notwithstanding paragraph 1, no. 1, private employers do not contribute to the payment of the ATP contribution that is collectively paid for members of an unemployment insurance fund who receive benefits while participating in job-oriented education under Chapter 9 of the Act on Active Employment Policy or while participating in schemes under Chapters 11, 13, and 14 of the Act on Active Employment Policy.

Paragraph 3. The financing contribution is calculated in accordance with the rules in the Order on the Calculation of the Financing Contribution.

Paragraph 4. The Labour Market Supplementary Pension handles the collection and recovery of the financing contribution from employers in accordance with the rules in the Order on Joint Collection of Certain Employer Contributions. The State's Share of the ATP Contribution for Members Receiving Benefits During Activation or While Participating in Job-Oriented Education under Chapter 9 of the Act on Active Employment Policy.

The State's Share of the ATP Contribution for Members Receiving Benefits During Activation or While Participating in Job-Oriented Education under Chapter 9 of the Act on Active Employment Policy

Section 5. The State pays 2/3 of the contribution pursuant to Section 1 for members who receive:

1. unemployment benefits while participating in job-oriented education under Chapter 9 of the Act on Active Employment Policy, or
2. unemployment benefits while participating in schemes under Chapters 11, 13, and 14 of the Act on Active Employment Policy.

Paragraph 2. The State's share of the contribution is calculated as double the member's rounded-down contribution share pursuant to Section 2, paragraph 1.

Chapter 2 Voluntary Payment of ATP Contributions for Members of Unemployment Insurance Funds Receiving Early Retirement Pensions

Section 6. Members who receive early retirement pensions under the Act on Unemployment Insurance and Other Matters may, at their own discretion, pay contributions to ATP.

Paragraph 2. Contributions shall be paid for each hour for which an early retirement pension is paid. Based on the annual contribution set pursuant to Section 15, paragraph 1, of the Act on the Labour Market Supplementary Pension, the Board of the Labour Market Supplementary Pension sets an hourly contribution. The contribution amounts to 1.86 DKK per hour.

Section 7. Members covered by Section 6 must notify the unemployment insurance fund if they wish to pay contributions to ATP.

Paragraph 2. Members have the opportunity once a year to change their choice regarding the payment of contributions to ATP. The change must be notified to the unemployment insurance fund no later than 10 January and takes effect from the first payment period in the calendar year.

Section 8. The contribution pursuant to Section 6 is paid by the early retirement pensioner. The contribution for a month is rounded down to the nearest whole DKK amount.

Paragraph 2. The unemployment insurance fund withholds the contribution when paying the early retirement pension.

Chapter 3 Voluntary Payment of ATP Contributions for Early Retirement Pensioners Who Are Not Members of a Danish Unemployment Insurance Fund

Section 9. Persons who receive early retirement pensions pursuant to Section 74 o of the Act on Unemployment Insurance and Other Matters and who are not members of a Danish unemployment insurance fund may, at their own discretion, pay contributions to the Labour Market Supplementary Pension.

Paragraph 2. Section 6, paragraph 2, and Sections 7 and 8 apply mutatis mutandis.

Chapter 4 General Provisions

Calculation and Collection of ATP Contributions to ATP

Section 10. The unemployment insurance funds must report the total ATP contribution paid to the Labour Market Supplementary Pension, cf. Sections 1, 6, and 9. The report is submitted for each individual benefit recipient once a month to the Income Register, cf. Section 3, paragraph 1, no. 7, of the Act on an Income Register and under the SE-numbers mentioned in Section 11, paragraph 1.

Section 11. The total ATP contribution of the individual benefits is calculated quarterly by the Labour Market Supplementary Pension based on the unemployment insurance funds' reports to the Income Register. The calculation is done on separate SE-numbers for:

1. unemployment benefits and benefits under Article 64 or 65 of Regulation (EC) No. 883/04 on the Coordination of Social Security Systems, and
2. early retirement pensions.

Paragraph 2. The contributions fall due for payment on 1 July (for the 1st quarter), 1 October (for the 2nd quarter), 1 January (for the 3rd quarter), and 1 April (for the 4th quarter). The Labour Market Supplementary Pension collects the total contribution from the Agency for Labour Market and Recruitment.

Paragraph 3. If the contributions fall due for payment on a bank-closing day, the due date is deemed to be the next coming banking day.

Paragraph 4. When the contribution has been collected, cf. paragraph 2, the Agency for Labour Market and Recruitment informs the individual unemployment insurance fund of the collected contribution.

Refund of ATP Contributions

Section 12. If a unemployment benefit recipient or early retirement pensioner must repay benefits to the unemployment insurance fund, the ATP contribution collected on the benefits shall be refunded by the Labour Market Supplementary Pension to the Agency for Labour Market and Recruitment. Amounts less than the ATP contribution for 37 hours are not refunded.

Paragraph 2. Refunds of ATP contributions are adjusted over the quarterly collections.

Paragraph 3. Refunded contributions in relation to unemployment benefits are included in the adjustment pursuant to Section 3, paragraph 6.

Paragraph 4. When the contribution has been refunded and adjusted over the quarterly payments to the Labour Market Supplementary Pension, cf. paragraphs 1 and 2, the Agency for Labour Market and Recruitment informs the individual unemployment insurance fund of the refunded contribution.

Chapter 5 Entry into Force and Transitional Provisions etc.

Section 13. This Order enters into force on 1 January 2024.

Paragraph 2. Order No. 1788 of 27 December 2018 on the Payment of ATP Contributions for Members of Unemployment Insurance Funds and Others is repealed.

Paragraph 3. In the payment of ATP contributions for remuneration for participation in occupational adult and further education for training courses commenced before 1 January 2019, the rules in Order No. 895 of 29 June 2017 on the Payment of ATP Contributions for Members of Unemployment Insurance Funds and Others continue to apply.

The Agency for Labour Market and Recruitment, 4 December 2023 Jens Erik Zebis / Kirsten Brix Pedersen