It is likely that it is related to the maintenance allowance paid to incapacity or rehabilitation pensioners. No free income limit applies to those payments and all income has an impact on the calculation regardless of the type. The maintenance allowance is intended to ensure a certain minimum of living for those who have incapacity or rehabilitation pension rights with TR.

Example 1: If a disability pensioner takes out a private pension savings of ISK 100,000, the special allowance is reduced by ISK 65,000.

Example 2: If a rehabilitation pensioner receives daily allowance from a union health fund of ISK 50,000, this reduces the special allowance by ISK 32,500.

It is also possible that income exceeds the limits that can be used to receive a basic pension, which causes the related rights such as income protection and home allowance to be cancelled.