This is PKA

PKA delivers life-long security in the form of simple pension schemes for a community of members based on solidarity. Our members are also our owners, and they lead us via well-developed member democracy. We are thus able to spend the full return we generate on making sure their life are financially secure. Together we give back more!

Few people think about pensions or PKA very often

Actually, they do not have to, because we care for our members every day. While keeping costs down. Generating solid returns. And offering simple, digital solutions for self-service and for having a broad pension overview.

We have a total of 360,000 members, mainly from social services and health care

We have taken good care of their pensions ever since 1954. Today, our combined net assets have reached such a size that they make in difference in society. E.g. our investments push sustainable building construction here in Denmark, they create growth in developing countries, and with our active ownership we encourage companies to move in a greener direction.

With DKK 440 billion in our pension fund

...we ourselves move in new directions by investing in solar power, wind power and the UN’s Sustainable Development Goals. We are proud to be a green leader in the pension industry. Because long-term, responsible investments generate good returns for our members, while contributing to a sustainable future.


Investment Policies and Labour Market Pension

Investment Policies

Investments returns must meet the demand from the liabilities regarding the participants pensions. Hense the investment strategy has one major target - to exceed the long term return target based on a predefined riskbudget.

Based on the required rate of return for the investment portfolie and the solvency levels of the pension funds a risk budget is calculated. This is done through a comprehensive model (pension protection limits), where all assets are stressed according to their volatility and correlation with other assets.

The portfolio is allocated into the following five assets classes: Nominal bonds, credit, equity (listed and unlisted), real assets (index linked bonds, real estate, infrastructure, etc. )and absolute return strategies.

However, pension funds members are very concerned that investments like other activities add to the social responsibility of the funds. This must be reflected in the way investments are handled.

The Labour Market Pension in Denmark

In Denmark, labour market pensions - the second pillar in a three-pillar system - are normally established either with life insurance companies or through pension funds.

Some characteristics of PKA - Pension Funds:

  • Established as part of collective agreements between employers and employees.
  • Contributions fixed in these agreements as a certain percentage of income. PKA fund contributions range from 13 to 18%.
  • Members are employed by many different employers - in PKA pension funds predominantly the regions local authorities or the state.
  • Members have similar education and are employed in the same sector. As a result, an employee changing his or her job e.g. from one hospital to another remain a member of the same pension fund.
  • As with most occupational systems in Denmark, PKA pension funds are hybrids between DB and DC-systems. Pensions are thus guaranteed benefits at the level obtained on the basis of the contribution paid. The pension schemes are fully funded.
  • PKA pension funds ara subject to EU life directives and national insurance legislation. However, it differs from an insurance company because it is fully owned by members.
  • The various occupational pension funds do not compete for members because membership is mandatory and determined according to education and employment. As a result, co-operation is possible among several occupational pension funds. PKA is an example of this.
  • The actual administration fee is up to 0.9% of the contribution paid.