Corporate Social Responsibility 2021 - Flipbook - Page 5
INDUSTRIENS PENSIONSFORSIKRING A/S
2021
CORPORATE SOCIAL RESPONSIBILITY REPORT
Security for Danish industrial
employees
The pension scheme at Industriens Pension is a
benefit originating from the collective bargaining
agreement and has gradually been expanded and
renewed over the years. Through attractive
returns, efficient administration, reliable
insurance schemes, targeted communication and
good customer service, Industriens Pension offers
the best possible pension scheme for Danish
industrial employees.
Figure 1
Total investment assets (DKK bn.)
For almost 30 years, Industriens Pension has been
the pension company for hourly paid industrial
employees, and has a fundamental ambition to
provide financial security to its members: through
savings and solid returns and through insurance for
employees who are no longer able to work.
SECURITY FOR DANISH INDUSTRIAL EMPLOYEES
Industriens Pension originates from a joint
declaration signed in 1987 by the social partners
and the government then in office to establish
new labour-market pensions for the private
labour market.
On this basis, in 1991, the trade unions in
CO-industri and the Confederation of Danish
Industry agreed to establish a pension scheme for
employees under a collective agreement.
Industriens Pension was founded in December
1992. The aim was, and still is, to ensure greater
financial security in old age for people employed
under the collective agreement, and the social
partners thereby took on substantial social
responsibility.
Since then, the social partners have increased
their pension contributions, typically to 12% of
pay, and the scheme has regularly been expanded
and now it includes a solid insurance scheme, e.g.
against loss of the ability to work and certain
critical illnesses.
From the outset, the scheme was based on the
concept that no shareholders are to earn money
on it. Thus, the entire profit goes to the members.
Rapidly growing pension assets
As a pension company for hourly workers in
industry and in the food sector, Industriens
Pension today has more than 429,000 members.
In 2021, contributions reached DKK 10 bn., and at
the end of 2021, Industriens Pension managed
investment assets totalling DKK 234 bn.
Investment assets have more than doubled in
eight years, partly due to attractive returns and
partly due to Industriens Pension being a pension
scheme where members’ assets are still under
development.
The primary aim of the assets is to secure better
finances in retirement for industrial employees
throughout Denmark. However, the Treasury will
also benefit from deferred tax revenues when
pensions are paid out. At a time when healthcare
costs for pensioners are increasing, this inflow of
revenues will benefit the economy.
Increase in payments
Despite sizeable total assets, the pension schemes of
individual industrial employees are still not as large
as they will be when pension contributions have
been made over the full working life of an industrial
employee. Calculations show that it takes approx. 33
years to save up half of one’s pension assets, and
only about 13 years to subsequently save up the
total pension assets. This is because of the
compound interest effect.
In 2021, average annual pension payments for oldage pensioners were DKK 37,000.
In line with the increase in the number of years in
which contributions are made, and longer periods to
earn returns on employees’ assets, members’
average pension assets and payments to old-age
pensioners will continue to grow.
Good insurance coverage
By far the majority of contributions to the pension
scheme goes into savings, but some also go into
insurance against loss of the ability to work, certain
critical illnesses and death. Thus, in addition to the
primary objective, another essential purpose is to
provide a sense of security in other difficult life
situations.
Industriens Pension has focus on providing
insurance against loss of the ability to work,
independently of whether the municipality grants a
disability pension.
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