As an acedemic staff member at CBS you are covered by a mandatory pension scheme. CBS pays a total pension contribution equal to currently 17.1% of your pensionable salary.
Besides saving up for your old-age pension, you will also be covered by a built-in insurance scheme that covers you, and in some cases your family, for disability and a life insurance. The insurance coverage in relation to the ordinary and §53a pension contribution is flexible and can be arranged in a way that matches exactly your situation.
Your pension fund will depend on your educational background and details of the relevant pension fund will be included in your letter of employment.
For further information about the insurance coverage, and if you wish to take out the pension amount when leaving Denmark, you must contact your pension fund. Please find the name of your pension fund in your letter of employment. If you already have a CPR number, you can also check your e-boks for letters from the pension fund to find the contact details. Please note that it is only possible to have your pension savings paid out if you leave Denmark and do not work at CBS anymore (or in special circumstances if the pension amount is very low).
Three different options for internationals
As an international researcher employed at CBS, you can choose between three different pension schemes - please read below.
When you recieve your employment offer and letter of employment from CBS, you will see that CBS has placed you on the pension scheme we consider most appropriate for you. If you wish to have a different pension scheme, please contact HR International Support.
On the ordinary pension scheme, pension contributions are exempt from taxation when they are paid into the pension fund. The pension fund will deduct 8% AM-tax upon reciept and place it on your pension account.
Tax will be deducted when you request your pension savings to be paid out. If you choose to take out your pension savings if you leave Denmark before you reach the age of retirement, the current fee is 60% of the savings. Please note that we have called it a fee and not a tax. There is a double taxation on this income.
If you choose to have your pension savings paid out when you reach the age of retirement, the taxation rate will depend on your personal situation and the prevailing pension tax legislation at that time.
Please note that a minor monthly administration fee will be paid from the amount in the pension fund.
Under the §53a pension scheme, CBS will also transfer a monthly pension contribution to the relevant pension fund.
However, opposite the ordinary pension scheme, when the pension contribution is transfered to your pension fund every month, it will be taxed immediately according to your current taxation status. You will be able to see this on your monthly payslip.
If you are under the Researcher Taxation Scheme, your pension contribution will be taxed 32.84%. If you are not eligible for the Researcher Taxation scheme, you will be taxed according to your income tax rate,
Under the ordinary tax scheme, the taxation rate can vary between 37 - 51% depending on your salary income level. Your taxable pension contribution will affect your progressive taxation on your salary income, as it is classified as "A-income", like salary.
Whether you request your pension savings to be paid out when you leave Denmark, or you keep your savings in your Danish pension fund until you reach the age of retirement, most tax related to the pension earned while employed at CBS will have been paid.
Please be aware that your capital gains on the pension will be taxed yearly and is considered Capital Income on the tax return. Please contact the pension fund or Skattestyrelsen (SKAT) for more information.
If you leave CBS and Denmark before you reach retirement age, you can take out the remaining amount without paying further taxes.. Please note that an administrative fee will be payable from the amount in the pension fund.
In order to be eligible for the §53a pension scheme, you must be employed in accordance with the Collective Agreement concerning Academic Staff Employed by the state and the pension fund you get assigned will have to offer §53a to their members (a majority of Danish pension funds do).
It is possible for some international researchers employed by CBS to be granted a pension exemption. This means that an amount equivalent to the pension contribution will be paid out as part of your monthly salary.
This amount will be taxed according to your taxation status, whether you are covered by the researcher taxation scheme with a flat rate of 32.84%, or are taxed on the basis of the ordinary tax scheme. In order to be eligible for the pension exemption, you must meet the following requirements:
- Employment as a researcher - Research Assistant, PhD fellow, Postdoc, Assistant Professor, Associate Professor or Professor.
- Non-Danish citizenship
- Fixed-term employment of maximum 5 years.
- Recruited from outside Denmark.
If you choose pension exemption instead of the ordinary or §53a pension contributions, you should be aware that you will not be entitled to the insurance coverage that is attached to the pension contribution. If you have any further questions about the insurance coverage, we recommend you contact a pension fund, as they vary between the different funds.