[3] These plans have emerged as a result of the centralized wage agreements and company policies guaranteeing minimum rates of interest.
[4] Personal pensions are inspired by tax considerations, desirable to people not covered by the occupational scheme.
[12] These schemes are mandated by collective bargaining agreements made between employers and employees, usually at the sectoral level.
Workers covered by different collective labor agreements are subject to mandatory participation, with varying contribution rates.
Depending on the plan, payouts can be collected in the form of phased withdrawals, lump sums, or life annuities.
[22] Employees' Capital Pension Fund (in Danish, the Lønmodtagernes Dyrtidsfond or LD) was established in 1978 and was aimed at being an economic policy measure.
[25] Suspension can be examined as a result of reduced incentives to engage, as households are not always fully rational, finding value in the optimization of employer contributions instead.
[27] Pension institutions invested in callable mortgage bonds that allowed borrowers to refinance their mortgages when interest rates fell, creating an asymmetric interest risk rate and encompassing a significant portion of the Danish financial system.
When equity markets collapsed and the new millennium global interest rates diminished, pension contracts and institutions were subject to liabilities, drained capital reserves, and mismatched assets.
This led to market-to-market valuation of the balance sheet and supervisory requirements to focus on the ability to withstand economic stress.
[28] Pension systems in advanced capitalist economies are influenced significantly by labor market deregulation, unionization, deindustrialization, the rise of the service sector, and trends toward welfare state entrenchment.
[29] Denmark's deep integration in the world economy introduces risk as global financial conditions would impact household debt and consumption.
[30] Decommodification is influenced heavily by pensions because of the link created between retirement income and labor market attachment.