Credit insurance and pension foundations

Many employers secure their employees’ pensions through both credit insurance and pension foundations. In such case, the credit insurance premium is reduced for such part of the pension liability which is covered by assets in the pension foundation.

A pension foundation is founded by the employer for the sole purpose of securing the employer’s pension commitments to employees. The employer is responsible for satisfying the commitments. The foundation’s assets function as collateral in the event the employer is unable to satisfy the commitments.

In the event the value of the pension foundation’s assets exceeds the employer’s liability for the pension commitments, there is a surplus in the pension foundation from which the employer can take compensation for its pension costs. Also, should the foundation experience a deficit, the employer may, in certain circumstances, be compensated but, in such case, only from the pension foundation’s returns.

Group pension foundations

A pension foundation may be shared by several different employers, for example within a corporate group. Each individual employer has its exclusive share in the capital of the pension foundation. The value of the share is determined by the employer’s allocations to the foundation, the return on capital and the compensation the employer has received from the foundation.

The foundation’s capital is managed jointly for the employers who are included in the foundation and the assets are allocated according to the share of each employer.

Credit insurance with PRI Pensionsgaranti

An employer who purchases credit insurance from PRI Pensionsgaranti and at the same time has commitments secured in the pension foundation, pays a reduced credit insurance premium on the part which is covered by the assets in the pension foundation.


The company may re-borrow funds from the pension foundation. In connection with re-borrowing from the pension foundation, the company must purchase credit insurance.