Mandatory Pension Scheme
Obligatorisk Pensionsordning
Coverage
Mandatory insurance
- Individuals receiving the following social security benefits: unemployment benefit (Arbejdsløshedsdagpenge); maternity/paternity benefits (Barselsdagpenge); voluntary early retirement pension (Efterløn); holiday benefit (Feriedagpenge); Flexjob contribution (Flekslønstilskud); early retirement allowance for beneficiaries of the subsidised flexible employment scheme (Fleksydelse); disability pension (Førtidspension); welfare benefits (Kontanthjælp); unemployment benefit for persons accepted onto a subsidised flexible employment scheme (Ledighedsydelse); resource course grant (Ressourceforløbsydelse); rehabilitation benefits (Revalideringsydelse); senior pension (Seniorpension); state adult education grants (Statens Voksenuddannelses-støtte); supplement for fractional pension (Supplement til Brøkpension); sickness benefits (Sygedagpenge); supplement to self-employed people with a reduced ability to work (tilskud til selvstændigt erhvervsdrivende med nedsat arbejdsevne); education benefit (Uddannelseshjælp).
Financing
General finances
- Fully funded scheme financed from contributions paid by the state.
Contribution rates
- Contributions are paid by the Danish State to ATP and will become part of the individual’s Danish Labour Market Supplementary Pension (ATP Livslang Pension).
- In 2020, the state will contribute an amount equivalent to 0.3 % of the individual’s benefit. The contribution will increase each year up to 2030, where the state will be contributing 3.3%.
Administration
- ATP is a self-governing institution established by law in 1964.
Qualifying Conditions
- The payout starts when reaching the statutory retirement age of the state pension.
- No options for early retirement available.
Benefits
Pension benefits
- It is a lifelong supplement to the state pension.
- The size of the pension depends on the type of social security benefit the individual receives.
Taxation and social security contributions
- The pension payment is taxed as personal income.
- Benefits are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Individuals receiving the following social security benefits: unemployment benefit (Arbejdsløshedsdagpenge); maternity/paternity benefits (Barselsdagpenge); voluntary early retirement pension (Efterløn); holiday benefit (Feriedagpenge); Flexjob contribution (Flekslønstilskud); early retirement allowance for beneficiaries of the subsidised flexible employment scheme (Fleksydelse); disability pension (Førtidspension); welfare benefits (Kontanthjælp); unemployment benefit for persons accepted onto a subsidised flexible employment scheme (Ledighedsydelse); resource course grant (Ressourceforløbsydelse); rehabilitation benefits (Revalideringsydelse); senior pension (Seniorpension); state adult education grants (Statens Voksenuddannelses-støtte); supplement for fractional pension (Supplement til Brøkpension); sickness benefits (Sygedagpenge); supplement to self-employed people with a reduced ability to work (tilskud til selvstændigt erhvervsdrivende med nedsat arbejdsevne); education benefit (Uddannelseshjælp).
General finances
- Fully funded scheme financed from contributions paid by the state.
Contribution rates
- Contributions are paid by the Danish State to ATP and will become part of the individual’s Danish Labour Market Supplementary Pension (ATP Livslang Pension).
- In 2020, the state will contribute an amount equivalent to 0.3 % of the individual’s benefit. The contribution will increase each year up to 2030, where the state will be contributing 3.3%.
- ATP is a self-governing institution established by law in 1964.
- The payout starts when reaching the statutory retirement age of the state pension.
- No options for early retirement available.
Pension benefits
- It is a lifelong supplement to the state pension.
- The size of the pension depends on the type of social security benefit the individual receives.
Taxation and social security contributions
- The pension payment is taxed as personal income.
- Benefits are not subject to social security contributions.
Legal Basis: Act on Danish Labour Market Supplementary Pension (Bekendtgørelse af lov om Arbejdsmarkedets Tillægspension).