The Icelandic Canadian - 01.12.1964, Síða 31

THE ICELANDIC CANADIAN
29
currently this provision is governed by
a law of 1956. It applies to all residents
of the country aged 16 to 66. Its effect
is to provide a pension for insured
citizens at age 67, a couple qualifying
for double pension if the wife also is
67.
The insured person pays from 531
to 1,000 crowns (krona)=$0.02517 Can-
adian) a year, according to marital
status and the size of the locality, as
his or her contribution to the fund.
This covers 33 per cent of the cost.
The employer pays a flat amount per
employee, this varying similarly with
marital status and locality size. Em-
ployer contributions cover 15 per cent
of cost. Subsidies covering 52 per cent
of cost are provided by the national
government and the communes.
Must Be Resident For Insurance
To receive a pension the insured
must be resident in the country and a
citizen of the country unless there is a
reciprocal agreement in force. The
pension is reduced by one half of other
income in excess of pension.
The pension, after the income test,
amounts to up to 8,564 crowns a year
in towns over 2,000 population and
6,243 crowns in rural areas, the amount
varying automatically with cost-of-
living changes. An aged couple receives
double the pension reduced by 20 per
cent. There is a child’s supplement of
4,392 crowns per year per child in
towns and 3,294 crowns in rural areas
There is an increment of seven-and-
one-hall’ per cent of pension for each
year the pension is deferred, the max-
imum being 60 per cent.
Invalidity pension, after the same
income test, amounts to up to 8,564
crowns a year in towns over 2,000 and
to 6,423 crowns in rural areas. Up to
double these amounts are paid to pen-
sioners requiring special care. There
is a child’s supplement of 4,292 crowns
a year per child in towns and 3,294
crowns in rural areas. All these
amounts vary automatically with cost-
of-living changes.
The insured may qualify for this
pension at any age from 16 to 65 if he
suffers 75 per cent in working capac-
ity. He must reside in the country and
be a citizen unless covered by a reci-
procal agreement of his own country.
This pension is similarly reduced by
half of other income in excess of pen-
sion.
A widow’s temporary pension is
1,098 crowns a month for three months,
continued for an additional nine
months at a reduction of 25 per cent
if she is caring for a child under 16
years of age. A widowed mother’s pen-
sion is 33 per cent, 66 per cent or 100
per cent of full old age pension if she
has two, three or four or more child-
ren. A widow’s permanent pension,
after income test, is up to 8,654 crowns
a year. A half orphan receives 4,392
crowns a year per child in towns and
3,294 in rural areas. A full orphan is
entitled to 6,588 crowns a year per
child in towns and 4,941 crowns in
rural areas. All these amounts vary
automatically with cost-of-1 i v i n g
changes.
To qualify for temporary widow’s
pension the applicant must be under
the age of 67, a resident of the coun-
try and a citizen unless there is a reci-
procal arrangement with her own
country. For a widowed mother’s pen-
sion the recipient must be caring for
two or more children under the age
of 16, there being no age condition or
income test. A widow may apply for
a permanent pension if she is 50 when
widowed or when her last child reach-
ed 16. The pension is reduced by half
of other income in excess of pension.
An orphan must be under age 16 and