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Social Insurance Administration: Professionals - on changes to disability and rehabilitation payments (1)

Why do my payments decrease when transferring to a new disability pension system?

This is because if you receive an allowance from pension funds that exceeds the exemption limits, it will reduce the calculation of your disability pension in the new system. This may lead to your allowance being lower than your current allowance or being discontinued. This applies almost exclusively to individuals with a relatively high allowance from a pension fund. However, additional pension savings do not affect the amount of the disability pension.

Your total allowance may also decrease as the entitlement to supplements for expenses is no longer available. The income limit for supplements for expenses is ISK 327,004 per month. Previously, the special supplement to pension for maintenance and the age supplement from TR did not reduce the supplements for expenses, but now all income-related allowances from TR will reduce the supplements according to the regulation on home supplement and supplements for expenses.