ICELAND - Net assets for pension payments increased by ISK200bn (US$2.4bn) during 2007, a report by the Icelandic Financial Supervisory Authority (FME) has found.
Premiums also increased from ISK96.1bn (US$1.2bn) in 2006 to ISK145.8bn (US$1.8bn) in 2007. This corresponded to an annual increase of 52%.
The FME said the main reason for this enhancement was an increase in required contribution to a pension fund from 10% to 12% of total wages which came into effect at the beginning of 2007.
Pension paid in the year 2007 amounted to ISK46bn (US$0.5bn), compared to ISK40bn (US$0.48bn)in 2006.
Figures showed private pension savings in total amounted to around 14% of the total assets of the entire pension system at year-end 2007. Private pension savings premiums increased by 27% and totalled ISK32.6bn (US$0.4bn) in 2007, compared to ISK25.7bn (US$0.3bn) in 2006.
At year-end 2007, a total of 37 pension funds were operating in Iceland, compared to 41 at the same time the previous year.
The report pointed out the reduction was due to the merging of funds, which was expected to continue. At the same time the funds have been growing and the 10 largest pension funds have about 80% of the total assets of the entire pension system.
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