The boards of the Frjálsi Pension Fund and the Farmers’ Pension Fund have signed a letter of intent to begin formal discussions on a possible merger of the funds. The decision was made following an assessment by the funds’ actuarial scientist of the feasibility of a merger, which is considered positive for the fund members of both funds.
The goal of the merger is to utilize economies of scale to reduce operating costs, enhance service and information provision to fund members and employers, reduce operational risk, and at the same time strengthen the funds’ asset and risk management.
If the merger were to take place, the combined fund would have total assets of around ISK 622 billion based on the assets as of October 31, of which Frjálsi’s assets would be around ISK 576 billion and the Farmers’ Pension Fund’s assets would be around ISK 46 billion.
The aim is to conclude negotiations on the merger before the end of the year. If an agreement on the merger is reached, an extraordinary annual meeting will be called at the Farmers’ Pension Fund and a proposal for the merger will be submitted to the fund members.
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