IconUnderstand the key pension terms 

Non-contributory cover

What happens when you no longer pay contributions to your pension scheme?

If contribution payments to your pension scheme are discontinued before you have reached the retirement age stipulated in the pension scheme, and you have not retired, the non-contributory cover becomes automatically effective.

This means that you maintain your right to your current insurance covers and the group insurance for the first 3 months after payment has been discontinued. This is called non-contributory cover. You can apply for an extension of the period which must be done before expiry of the non-contributory period. You can apply for extension of the non-contributory cover for 1 year at a time for up to 3 years. If you want to extend the period, please contact us

If you have left your job due to illness, if you are out of work, or you have become a self-employed, please contact us. This also applies if you consider transferring your savings. In this case we can advise you about what you should be aware of. 

In the non-contributory period we deduct the costs for maintaining the insurances from your savings. Non-contributory cover applies when contribution payments are discontinued before you reach the retirement age stipulated in the pension scheme.

The non-contributory cover becomes automatically effective when payment of contributions is discontinued. We will inform you.

If you do not want to be subject to the non-contributory period, you can opt out of it which becomes effective on the 1. of the month after you have contacted us, however, no earlier than on discontinuation of contribution payments.

If your privately paid contributions are discontined, you should contact us as it may have tax-related consequences.

When the non-contributory period expires, you are transferred to dormant membership if payment of contributions is not resumed. This impacts on your insurance covers which you can read more about below. 


As a dormant member, you are in general made subject to a new provision period, when payment of contributions is resumed. You can read more about provisions here

Please note that you do not earn seniority for renting apartments as a dormant member.


Applying to P+, P+ former JØP and P+, former DIP
After expiry of the non-contributory cover, you are transferred to dormant membership. This means that your insurance covers are reduced as the covers are calculated on basis of your savings. 


The group insurance is discontinued on transition to dormant membership unless your dormant membership starts after your have reached age 60.


Applying to P+ Life cycle
In the non-contributory period the payment for your insurance covers are deducted from your savings. Excise duties on the lump sum death benefit is settled, as there is no tax-related deduction for the payment. 


After expiry of the non-contributory period, you are transferred to dormant membership. This means that your insurance covers are discontinued. This also applies to the insurance in the event of critical illness and the accident insurance. 


If you have set up a pension life cover or a pension guarantee, you will keep this cover on transition to dormant membership.