Annual Report 2019-2020

29 Á R S S K Ý R S L A E F L I N G A R 2 0 1 9 – 2 0 2 0 The fund‘s operating expenses for 2019 was 937 million ISK. There were 40 staff members at year end 2019, compared to 38 at the end of 2019. There were 39,6 full time positions, an increase of 4,4 from 2018. DISABILITY PENSIONS As before, disability pension payments are a high pro- portion and is among the highest of Icelandic pension funds. In order to equalize the status of pension funds due to different disability pensions, pension funds have been allocated contributions from the state that are paid by national insurance contributions. Gildi made a new contribution to increase the rights of pensioners and paying members. This contribution amounts to 1,859 billion ISK in 2019 and increased the rights by 4% based on this contribution. ACTUARIAL ASSESSMENT An actuarial assessment was made of the Mutual Pension Fund at the end of 2019. Per this assessment, the fund’s assets were 40,919 billion ISK higher than the earned rights of its members. Taking into account estimated future contributions, the fund´s assets are 40,298 billion ISK higher than total liabilities at year end. The fund’s position is therefore positive by 3.7% at the end of 2019 and improved by 4.8% between years. LOANS FOR FUND MEMBERS In 2019, the fund issued a total of 1.272 new member loans in the amount of 20,557 billion ISK. This repre- sents a slight reduction in the number of loans and the total loan amount. In previous years, loans increased steadily and it should be noted that in 2014, the fund granted 141 loans totaling 1,500 billion ISK. Gildi decreased the maximum mortgage ratio of fund member loans from 75% to 70% as of the beginning of the 2018/2019 fiscal year. The fund also changed its loan rules mid-December 2019 and set 60 million ISK as the maximum loan amount, previously there was no limit on the loan amount. COVID-19 UNCERTAINTY The world is currently dealing with an unprecedented situation, it is not currently known what the short and long term effects will be. As of this writing, many companies and virtually all markets have taken a hit which will inevitably affect an investor like Gildi. It is comforting to note that Gildi is coming out of one of the best operating years in the history of the fund and is in a better position to deal with this situation than it would have been otherwise. POLICY AND BYLAWS Gildi’s bylaws include rules on the role, purpose and activities of the fund. They also discuss the rights and responsibilities of fund members, the appointment and mandate of the board and the annual meeting. The fund’s bylaws were amended at the Annual General Meeting 2019 and entered into force on July 1 st 2019. Gildi’s staff operate in compliance with not only the fund‘s bylaws but also in compliance with clearly defined policies regarding the fund‘s focus on mat- ters such as investments, risk, shareholder relations, employee benefits, privacy and more. All of the fund‘s policies are reviewed regularly and amended when necessary. The fund‘s investment policy is reviewed annually and the most recent version was approved by the board on November 28 th 2019. The fund’s human resources policy was revised during the year and a new version was approved at the board meeting on November 14 th 2019. A new equal pay policy for the fund was approved. Gildi made no amendments to the policies regarding risk, responsible investment, shareholders, employ- ment and privacy. The fund‘s policies and bylaws can be found in their entirety on Gildi’s website. EQUAL PAY CERTIFICATION Gildi received certification on December 16 th 2019 that their new equal pay system meets the equal pay standard (ÍST 85:2012). In developing and introduc- ing a new pay system, almost no gender pay gap was measured within Gildi, well below the 2.5% benchmark set by the fund. In combination with the introduction of the equal pay system, the fund also established a new Equal Pay Policy, which outlines the focus on equal pay. The equal pay system affirms the commitment of Gildi’s management to create equal opportunities for employees and a healthy, safe and engaging work environment. Discrimination is not made on the basis of gender, race, religion, age or origin. Gildi does not tolerate bullying, violence or harassment of any kind. The above points are highlighted in Gildi’s staff policy.