The boards of directors of Frjálsi Pension Fund and the Pension Fund of the Icelandic Dental Association (LTFÍ) have signed an agreement to merge the pension funds. The Pension Fund of the Icelandic Dental Association will merge with Frjálsi Pension Fund, which will subsequently expand and take over all rights and obligations towards LTFÍ fund members. As of September 30, Frjálsi’s size was about 562 billion and LTFÍ’s size was about 11 billion.
Negotiations on the merger of the funds began at the end of June 2025 and subsequently a detailed assessment of the feasibility of the merger was carried out. The boards of both pension funds believe that the merger will strengthen their operating basis and is therefore to the benefit of fund members, as the pension funds are very similar in structure; for example, the mandatory contributions of fund members are divided into separate assets and joint insurance, which has given the funds a certain special status over most other pension funds. According to the agreement, Frjálsi will take over the assets and liabilities of LTFÍ on 31 December 2025 and from that time Frjálsi will take over the contributions and pay pensions to fund members. The merger is subject to approval at the LTFÍ fund members’ meeting to be held in November and confirmation by the Ministry of Finance of the changes to the fund’s articles of association.
Ásdís Eva Hannesdóttir , Chairwoman of the Board of Directors of the Free Pension Fund:
“I would like to thank the board of the Pension Fund of the Icelandic Dental Association for the trust it has shown in the Frjálsi Pension Fund by requesting the merger of the funds. With the merger, LTFÍ fund members will become part of a strong pension fund with almost 80 thousand fund members. We will strive, in collaboration with the fund operator, Arion Bank, to provide dentists, like other fund members, with excellent service and good returns. We combine the strengths of both funds and lay the foundation for a solid and strong future with the interests of all fund members as our guiding principles.”
Sigurgísli Ingimarsson , Chairman of the Icelandic Dental Association Pension Fund:
“After the board of the Icelandic Dental Association Pension Fund had, since the beginning of January 2025, thoroughly examined various options for the continued operation of the fund in an unchanged form or a merger with another comparable pension fund, the result was to seek merger negotiations with Frjálsi Pension Fund, and negotiations began in this regard at the end of June 2025. I am convinced that we have chosen the best option in the situation, guided by the interests of fund members. We are merging with a large pension fund with a history of good and successful operations. At Frjálsi, the emphasis is on strong asset and risk management, freedom of choice and ambitious digital services that will benefit LTFÍ fund members in the future.”
Source