Mitteusaldusväärse

Mitteusaldusväärse is a concept in labor law and social policy, particularly in the context of pension systems. It refers to the change that occurs in the age of retirement or pension eligibility as a result of Iceland's transition from a traditional pay-as-you-go pension system to a notional defined contribution (NDC) system.

In the past, many countries had pension systems in which workers would pay into the system, and their employers or the government would make matching contributions. In return, they would receive a pension after reaching a certain age, typically between 60 and 65. However, with the introduction of NDC systems, workers' retirement ages and pension eligibility began to shift.

Under an NDC system, workers pay a certain amount of their salary into the pension fund each year, while their employer makes a corresponding contribution. The funds are then allocated to the worker's individual account, where they accrue interest over time. When the worker retires, they receive a pension based on their accumulated funds, rather than a fixed percentage of their salary.

As a result of this change, Iceland's social security agency, the Government of Iceland, stated that eligibility for early or full retirement benefits without a reduction or recompense has changed. Some individuals may now retire earlier, at 62, but receive a reduced pension, while others may choose to delay retirement and receive their full pension benefits at a later age, approximately 66. This reform aims to help generate sufficient funds for disability and death benefits in Iceland's pension system.