Here is a video to explain the settlement letter which will be published on May 11th.
Grounds for objection include, for example:
the income on your tax return is incorrect
you have separated from your spouse and believe the joint capital income is incorrect
capital income was generated after death in a deceased's estate and should not have been included in the settlement
you have applied for payment adjustment with the Debtors' Ombudsman
Click on “submit objection here” in the letter to object and click on instructions for “objection” in the letter to watch a video on how to proceed.
Click on “debt here” in the letter to arrange a payment plan for your debt yourself and click on instructions for “payment plan” to watch a video on how to proceed.
If you do nothing, your debt will automatically be spread over 12 months with TR from 1 June 2026, and a letter explaining the payment plan can be viewed by clicking on “payment plan letter here” in the letter.
Here you can see explanations for page 2. Let's look at it more closely.
In column A, you can see your income on your tax return for the year 2025, and in column B, you can see the income you entered in your last income plan with TR.
On the tax return (column A), you can see that your pension fund income was lower than anticipated in your last income plan (column B), which results in a credit of ISK 73,592 upon recalculation.
As previously stated, a debt of ISK 227,330 had accrued during the year.
TR will deduct the credit of ISK 73,592, and therefore your debt will be reduced to ISK 153,738.
Thank you
The recalculation of your pension allowance from the Social Insurance Administration generally takes place in the latter half of May each year after your tax return has been filed.
This is to review whether you have received the correct payment from TR in the past year based on your entitlements.
General information
You will receive a notification of the outcome of the settlement and recalculation on My Pages TR.
There you can see whether you have received:
the correct payment,
an underpayment, in which case you will be paid the difference,
Once the settlement is complete, TR sends an updated payslip to the tax authorities with the final result. The tax authorities will then review the year's tax assessment.
Right to object
If you disagree with the outcome of the settlement, you can submit a reasoned objection via My Pages at TR. Objections can be submitted up to and including May 27th.
Here is a video showing how to submit an objection.
If you believe the result of the settlement for 2025 is incorrect, you can object on My Pages at TR.
By objecting, you are raising an issue with the grounds on which the settlement is based.
Grounds for an objection include, but are not limited to:
The income recorded in your tax return is incorrect and you need to request a reassessment of your tax return from the Icelandic Tax and Customs.
You have separated from your spouse during the year and believe that the joint capital income is incorrect in the settlement result.
Capital income was generated after death in a deceased's estate which should not have affected the settlement result from TR.
An application for payment adjustment has been submitted to the Debtors' Ombudsman.
Objections must be well-reasoned and supported by relevant documents.
To object, you need to log in to My Pages at TR with your electronic ID.
Click the blue button.
On the homepage of My Pages at TR, click on
“Contact us”
The deadline for objecting to the settlement is from 11 May to 27 May 2026, inclusive.
Click on “Settlement and income plans”
Write your well-reasoned objection. Click “Send”
It is necessary to submit documents with your objection. Go back to the homepage of My Pages at TR and click on “Submit documents”
Select “Settlement and collection” under category
Select “Objection to settlement – supporting documents”
Upload the supporting document
Click “Send”
Thank you
Appealing the settlement results
If your objection has been answered and you still believe the settlement results are incorrect, it is possible to appeal the results to the welfare appeals committee.
If you do not receive the results in May
Not all recipients receive a settlement in May, and there can be various reasons why you might receive your settlement later.
The most common reasons are:
you are a pensioner and live abroad,
you filed your tax return late,
you have not filed a tax return.
If you would like a more detailed explanation of the settlement result, you can send us a message via My Pages TR.
Settlement of pension payments - frequently asked questions
