Do all members of the Faroese Workers’ Union receive pension?
It is important to the Faroese Workers Union that its members’ standard of living does not drop when they retire from the job market. That is why it is important to have a good pension scheme in addition to the solidarity pension and the public pension.
The Faroese Workers’ Union has maintained a pension scheme for its members since the start of this century. This is an annuity pension scheme, which means that you will receive a monthly amount for the rest of your life after you become 67 years old. The size of the pension benefit is connected to how much you have paid when you were on the work market. The pension payment is 11% and i paid on top of your wage.
For working pensioners, the pension is not paid out but paid to the worker in addition to the wage. For workers on the hourly-wage that take time off without pay, 8.58% are added and 9.43% are added to the pay for pensioners who take time off with leave.
How am I insured?
In case of severe injury, members of the Faroese Workers’ Union are insured in case of death, certain critical illnesses or if children under 18 contracts certain critical illness.
In addition to this, members of the Faroese Workers’ Union also have the right to a final benefit, on the condition that they have been members of the Faroese Workers’ Union for at least 10 consecutive years when they are 67 years old.
The insurance fee is 1.5% of the wage and is paid to the union together with the membership fee and the pension fee. If you are forced off the work market before you are 67 because of illness, you can remain in the system if you continue to pay a fee of DKK 300 every month. Remember to examine your insurance, if you are forced to leave the work market.
Rates as of January 1st 2022:
In case of death: DKK 381.031,00
In case of critical illness: DKK 95.257,00
In case of child’s critical illness: 95.257,00
Final benefit: DKK 100,000
All insurance rights and conditions for payment are available in the booklet Joint Life Insurance for Faroese Workers’ Union
When do we have the right to widow/er benefit?
In case of severe injury and a member of the Faroese Workers’ Union dies, his or her bereaved spouse or children under the age of 18, have the right to widow/er benefit for the month when the person dies and the following three months. This is under the condition that the person has worked for a minimum of one year for the current employer.