The merger of the Akureyri Employees' Pension Fund (LSA) and Brú Pension Fund has become a reality, following confirmation that the Icelandic Ministry of Finance has approved the fund's articles of association.

The decision to merge the funds was initially announced in December 2024, with negotiations beginning shortly after on 1 January 2025.

The funds then confirmed last month (October) that they had merged following approval from the board.

This also saw the creation of a new department for LSA in Brú Pension Fund called Division E, which ensured that the assets and liabilities of LSA remain completely separate from the other assets and liabilities of the fund.

The rights and vesting rights of fund members also remained unchanged in the merger.

This is the second merger for Brú within a year, as, at the beginning of 2024, it merged with the Reykjavík City Employees' Pension Fund (LsRb).

This merger also resulted in the creation of a new department at Brú, the R Division, which manages LsRb's operations, assets, liabilities and obligations.

These mergers are also part of a long-term trend of consolidation among Icelandic pension funds.

Over the past couple of months, both Frjalsi Pension Fund and LTFÍ and Lífsverk and Almenni agreed to merge their funds.

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