Frjálsi Pension Fund /
application for mandatory pension savings / Acc. No.329-26-7056, ID-No.600978-0129, pension no. 137

Personal information

Name / Address
ID-No. / Post code and town/city
/
Telephone Mobile / E-mail address

Choice of Insurance Plan for Obligatory Premium Payments

Choose one insurance plan below. If no insurance plan is chosen, premium payments will be allocated under the Freedom Path Plan by default. Please note that the choice of insurance plan in this application supersedes previous choices of investment plan. Please refer to the reverse side for more information on insurance plans.

Choice of Plan / Insurance Plan / Insurance fund / Limited Account3 / Open Account4 / Total
X / Inheritance Path / 3.40%1 / 6.55% / 2.05% / 12%
X / Freedom Path / 7.95%2 / 4.05% / 12%

Choice of Investment Plan for Open and Limited Accounts

Choose one of the investment plans below. If no plan is chosen the Life Plan will be used by default. Please note that the choice of investment plan in this application supersedes previous investment plans in mandatory- and supplementary pension savings and may entail transferring assets to another investment plan if Life Plan is selected. Please refer to the reverse side for more information on investment plans.

Choice of Plan / Investment
Plan / DomesticEquities* / Domestic bonds and deposits / Foreign Equities* / Foreign bonds and deposits / Age in Life Plan **
X / Frjálsi 1 / 20% / 50% / 25% / 5% / 54 years old and younger
X / Frjálsi 2 / 12% / 75% / 8% / 5% / 55 years old and older
X / Frjálsi 3 / 99% / 1% / Pensioner
X / Frjálsi Risk / 25% / 40% / 30% / 5%
X / Life Plan / Fund member's personal pension is transferred between Frjálsi 1-3 depending on age

Monthly payments shall be made as follows:

X / Employer sends payment
X / Issue bill, pay online *** / 12% premium / ISK / VIRK 0.10%* / ISK / Total / ISK
*Employers shall pay 0.10% of the employee’s total salary into VIRK, the Icelandic Rehabilitation Fund.

Please send a copy of this application to my employer:

Name / Address
ID-No. / Post code and town/city
Telephone Number / Fax / E-mail address

By signing below I confirm that I have read through this application, including the information on the reverse side.

Place and date / Consent of parent/guardian if beneficiary is under 18
Signature of Member / On behalf of Frjálsi Pension Fund (name of advisor)

Send by email to or by mail to Lífeyrisþjónusta, Túngötu 3, 580 Siglufjörður Copy Frjálsa lífeyrissjóðsins

application for mandatory pension savings /

Further information on insurance plans:

The table below shows the different payout options depending on which insurance plan you select. Further information is also contained in the fund’s articles of association.

Insurance Plan / Insurance fund / Limited Account3 / Open Account4 / Total
Inheritance Path / 3.40%1 / 6.55% / 2.05% / 12%
Freedom Path / 7.95%2 / 4.05% / 12%

1)Guarantees disability- and children‘s pension in the event of the loss of ability, spouse‘s and children‘s pension in the event of death and old age pension from the age of 85 until death. It is possible to start receiving an old age pension from the age of 82 if payments from the limited account have been completed, but in this case pension from the insurance fund decreases.

2)Guarantees disability- and children‘s pension in the event of the loss of ability, spouse‘s and children‘s pension in the event of death and old age pension from the age of 70 until death. It is possible to start receiving an old age pension from the age of 60 in which case the pension decreases, or to postpone it to the age of 75, in which case the pension increases.

3)Funds in the limited account can be paid out when the fund member reaches the age of 60 and a monthly pension is guaranteed until the age of 82, 83, 84 or 85 depending on the choice of the fund member. Funds in the limited account are fully inheritable.

4)The funds in the open account can be paid out when the fund member reaches the age of 60. Payments cannot be received however until 2 years after the first deposit. You can request monthly or annual payments, or a lump sum. The open account is paid out in the case of disability according to certain rules and once specific conditions have been met. Funds in the open account are fully inheritable.

Further information on investment plans:

Please note that the choice of investment plan in this application supersedes previous investment plans in mandatory- and supplementary pension savings and may entail transferring assets to another investment plan if Life Plan is selected.If the fund member chooses the investment plan Life Plan but has accumulated savings in another investment plan, these savings will be transferred to the investment plan under Life Plan. However, savings under Frjálsi 3 will not be transferred according to the above. If, however, the member chooses a different investment plan to Life Plan but has accumulated savings in Life Plan, these savings will remain in the investment plan under Life Plan but will not subsequently be transferred in accordance with the rules on Life Plan.

Investment
Plan / Domestic
Equities* / Domestic bonds and deposits / Foreign Equities* / Foreign bonds and deposits / Age in Life Plan **
Frjálsi 1 / 20% / 50% / 25% / 5% / 54 years old and younger
Frjálsi 2 / 12% / 75% / 8% / 5% / 55 years old and older
Frjálsi 3 / 99% / 1% / Pensioner
Frjálsi Risk / 25% / 40% / 30% / 5%
Life Plan / Fund member's personal pension is transferred between Frjálsi 1-3 depending on age

*In the above table shares and unit shares of other funds for collective investments are categorised as domestic shares.

**Under the Life Plan the premium payments and balance are transferred between investment plans depending on the member’s age as shown in the last column. Further rules on the Life Plan may be found in the fund’s articles of association. As the member gets older, investment risk is reduced to lessen fluctuations in returns as the member approaches the date for paying out pension savings.

The percentages in the table above are the asset allocation targets specified in the fund’s investment strategy. The investment strategy is reviewed at least once a year and may be amended in response to changes in legislation and/or decisions made by the board of directors following announcements by the Icelandic Financial Supervisory Authority.

The fund‘s website, frjalsi.is, contains a range of information on the fund, including the articles of association, information on payout rules, annual financial statements, returns on investments and asset allocation.

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