Frequently asked questions
Get answers to frequently asked questions
1. When will employees/members be informed of the changes?
The letters will be sent out from November 2024 to February 2025. The distribution of the letters will be prioritised so that the employees/members who experience the biggest change will receive their letters first. You can read more about the changes and what they mean for each individual by clicking the investment profiles above.
2. Do employees/members need to do anything?
No, the changes will be implemented automatically. If employees/members are unsure whether they have the right investment profile, they can easily and quickly get help from the investment guide at mitpfa.dk or in the My PFA app, where they can also change their investment profile. From 1 April 2025, the guide will be updated with the latest changes, but they can consult it already now to find out which investment profile is right for them.
3. Do we as a company need to do anything?
No, the changes will be implemented automatically.
4. Does the change affect our choice of default profile for new employees/members?
The changes will be changed as follows:
Investment profile A → Profile Cautious
Investment profile B → Profile Low
Investment profile C → Profile Medium
Investment profile D → Profile High
The changes will be made automatically. It will no longer be possible to have Profile Cautious as the default profile. If you are unsure if you have the right default profile for your employees/members, you can easily and quickly get help from your usual key account manager or by calling us at (+45) 39 17 69 99.
5. Can employees/members keep their current profile?
No – if the employee/member currently has investment profile B, C or D, the savings will automatically be moved to Profile Low, Medium or High, respectively, on 1 April 2025. Investment profiles B, C and D will be closed. We have developed the new profiles as we want to strengthen your employees’/members’ long-term investment returns, so that their savings can grow as much as possible to ensure their financial security during retirement. We increase the proportion of shares and similar investments in their savings. Shares and similar investments generally have a higher return potential than, for example, bonds. However, this also means that the risk and thus the fluctuations in the value of their savings can be higher, especially in the short term.
Employees/members with profile A will not be moved. Their profile will simply be renamed PFA Cautious.
6. Does the change cost the employees/members anything?
No, the change itself will not involve any direct costs.
The investment costs that are deducted from the returns may change as a result of the reallocation of your investments and are generally higher for shares and similar investments.
However, the investment costs for 2025 have not yet been determined, so we cannot provide the expected annual percentage rate (APR) for the different investment profiles at this time.
You can always see the agreed cost rates in your Cooperative Agreement.
7. Can the employee/member change profiles? How do they do it?
If employees/members are unsure if they have the right investment profile, they can easily and quickly get help from the investment guide at My PFA, where they can also change investment profile. From 1 April 2025, the guide will be updated with the latest changes, but they can consult it already now to find out which risk profile is right for them. If they choose to change profiles before 1 April 2025, they will automatically be transferred to the new profile, which, on 1 April 2025, will replace the investment profile they have chosen.
8. When will the changes be implemented? What will the process be?
The changes will take effect on 1 April 2025. The increase in the proportion of shares etc. in the new profiles will be phased in from 1 April 2025 to expectedly 31 December 2025. The gradual reallocation of investments is intended to mitigate the impact of any fluctuations in the financial markets as we move your employees’/members’ savings.
9. What can employees/members expect to gain from the change?
With these changes, we expect to strengthen their long-term investment return so that their savings can grow as much as possible to ensure their financial security during retirement. Shares are favourable when it comes to long-term savings such as pensions, as the ongoing value fluctuations are typically evened out in the longer term. That is because they are driven by economic growth and corporate earnings. Historically, this generates a higher return than, for example, bonds. In addition, shares can help inflation-proof the employees’/members’ savings, thereby strengthening and maintaining the purchasing power of their pension savings.
How much the individual employees/members are expected to benefit, among other things, on their current investment profile, their savings and the time they have until retirement. Employees/members can see an updated forecast at My PFA from 1 April 2025.
10. Will the expected risk be higher in the profiles?
Yes, we increase the proportion of shares and similar investments in their savings. Shares and similar investments generally have a higher return potential than, for example, bonds and similar investments. However, this also means that the risk and thus the fluctuations in the value of the savings can be higher, especially in the short term. We do this to strengthen the long-term return potential so that the savings can grow as much as possible, benefiting the financial security of the employees/members in retirement.
11. When can employees/members see the change at My PFA?
The changes can be seen at mitpfa.dk and in the My PFA app from 1 April 2025.
12. Why are you making this change and what does it mean for our employees/members?
We change our investment profiles to increase our customers’ expected pension assets and thus their expected pension payouts. Of course, this also comes with a higher risk, but pension savings are long-term savings, and in most scenarios, a higher proportion of shares will result in higher pension assets. We believe this outweighs the risk that in a few scenarios, the pension assets could decrease. What exactly this means for the individual and their savings depends, among other things, on their current profile and how much time they have until retirement.
13. Is it an advantage or disadvantage that the proportion of shares is reduced over a long period of time?
That is an advantage. We increase the proportion of shares and similar investments in savings to increase the expected pension assets and thus the expected pension payouts on retirement. We then gradually reduce the risk over a longer period and, as a new addition, we also reduce the risk after retirement. This is expected to provide greater stability in pension payouts as people get older.
14. I have an employee/a member who has received a letter with the wrong investment profile. What should we do?
You do not have to do anything. If the profile stated in the letter does not match the employee’s/member’s investment profile, this may be because the employee’s/member’s profile has changed since we prepared the letter. Employees/members can always see their current profile at My PFA. The change is based on the selected profile as at 1 April 2025.
15. What does the change mean for employees/members who have profile A?
The gradual reduction of the proportion of shares etc. will continue unchanged in Profile A, which will simply change its name to Profile Cautious. We recommend that employees/members with profile A consult the investment guide at My PFA to ensure that they have the right profile. Generally, we no longer recommend Profile A, and this profile will therefore not be part of the investment guide. From 1 April 2025, the guide will be updated with the latest changes, but they can consult it now to find out which risk profile is right for them. If they choose to change their investment profile before 1 April 2025, they will automatically be transferred to the new profile, which will replace the investment profile they have chosen on 1 April 2025.
After 1 April 2025, it will not be possible to choose Profile Cautious.
