Add-on Savings - Pension Accrual (Arion Bank)

Vocabulary flashcards covering key terms from the Arion Bank Add-on Savings - Pension Accrual contract, including parties, contributions, investment paths, payouts, transfers, and insurance.

Pension Accrual (Lífeyrisauki)

A contractual add-on pension savings product from Arion Banki that allows salary-based contributions, investment path choices, and rules governing growth and retirement payouts.

Add-on Savings (Viðbótarsparnaður)

Additional voluntary savings into the pension beyond mandatory contributions.

Age-based Investment Path (Ævilína)

An investment path that automatically shifts investments across five stages as the holder ages.

Investment Path (Fjárfestingarleið)

A specific mix of assets (e.g., domestic bonds, deposits, foreign securities) available within Lífeyrisauki.

Contribution (Iðgjald)

Monthly payments into Lífeyrisauka; can be a fixed amount or a percentage of salary.

Due Date (Gjalddagi)

The date contributions are due; for this plan, the period’s due date is the 10th of the next month and ends on the last day of that month.

Beneficiary (Rétthafi)

The rights holder who directs investments and benefits from the Lífeyrisauka.

Employer (Launagreiðandi)

The employer who pays wages, withholds employee contributions, and forwards them to the custodian.

Custodian (Vörsluaðili)

The institution that holds and administers the Lífeyrisauka assets on behalf of the holder (Arion Banki as custodian).

Contributions (Iðgjald)

Payments made into the Lífeyrisauka; credited with interest from the date the custodian receives them.

Disbursement (Útborgun sparnaðar)

Payout of the savings, possible due to retirement age, disability, or death; may be full or partial with规定 rules.

Termination (Uppsögn samnings)

Ending the Lífeyrisauka contract; requires a two‑month notice and does not automatically entitle a payout.

Transfer between Custodians (Flutningur milli vörsluaðila)

Moving the savings to another custodian offering a similar contract; typically within two months and subject to costs (max 0.5% of balance, min 5,000 kr).

Assignment of Rights (Framsal réttinda)

Restriction on transferring or pledging rights to the Lífeyrisauka; allowed only as permitted by law.

Disability Insurance (Örorkutrygging Varðar)

Disability insurance linked to the plan; benefits are paid from Varðar and coordinated with the Lífeyrisauka; part of the premium may fund this.

Insurer (Varðar Trygginga hf.)

The insurer Varðar Trygginga hf., providing the disability insurance under the Varðar policy.

Electronic Signature (Rafræn undirritun)

Signing the contract electronically; legally equivalent to a written signature under Icelandic law; documents stored as electronic records.

Wage Guarantee Fund (Ábyrgðasjóður launa)

Fund that covers unpaid wage contributions if an employer defaults; payments depend on statutory conditions and fund regulations.

Domestic Bonds (Innlend skuldabréf)

Bonds issued domestically; one of the possible asset classes within the investment paths.

Deposits (Innlán)

Bank deposits; an asset class available within investment paths.

Foreign Securities (Erlend verðbréf)

Securities issued outside the home country; used for diversification within investment paths.

Electronic Document (Rafrænt skjal)

Documents related to the contract stored electronically (e.g., in Netbank), with signing confirmed electronically.