Sámal Petur í Grund, chairman and MP for Sjálfstýri, recently posed an Article 52 inquiry to Margit Stórá, the Minister of State for Social Affairs and Health. He pressed her on whether there are any plans to discontinue the practice of offsetting earned income for pensioners.
Her response was clear: there are no such plans.
This answer has sparked a reaction from Helgi Abrahamsen, who pointed out the commitments outlined in the coalition agreement.
“The Samong document,” he remarked, “raises eyebrows within the Union Party, particularly as the minister defends a general refusal to make changes.”
Abrahamsen continued, “We’ve explicitly agreed to set the offset limit at 300,000 ISK per year, and we expect a proposal to be on the table following Olavsøkan, aiming for it to be implemented by January 1, 2027.”
When asked whether the coalition partners are at odds, Abrahamsen suggested that the disagreement lies not within the parties themselves, but rather among the people. He emphasized that this agreement was a compromise supported by all parties involved, reinforcing the importance of collaboration toward a common goal.
Regarding the current pension offset system, it allows individuals to earn additional income without affecting their national pension. However, earnings exceeding 61,900 ISK result in a 20 percent offset against the pension.
Notably, the coalition plans to raise the cap on pensioners’ earnings that can be made without offsetting to 300,000 ISK per year. Conversely, the offset rate will increase from 20 to 30 percent.
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