A closer look at the SP payout initiative

Lately, there has been a lot of press in Denmark about getting the SP Pension paid out in an attempt to boost the economy. The possibility to obtain SP savings was launched in June as part of the spring tax bill.

If you were working in Denmark from 1998-2003, you paid 1% of your gross earnings to a personal SP account. However, since 2004, nobody has paid to SP, as the system was put in abeyance by the Danish government. You are eligible to claim your SP savings, if you worked in Denmark during this period. Starting in June and until December 31st, 2009 you can get your SP savings paid out. Usually SP is payable in installments over 10 years.

A total of 2,278,741 Danes have already received their SP savings from ATP, who so far has paid out DKK 36 billion. The Danes’ great desire to get their SP paid out far exceeded both the government and ATP's expectations, both in extent and speed.

ATP expects at least 90% of Danes will choose to get their SP savings paid out before December 31st. Danes living abroad just have to be aware of the taxes they have to pay if they choose to get their SP savings now, as some will have to pay taxes on the amount in Denmark as well as in the country where they live. You can check your SP balance at www.atp.dk and find most answers to the SP payout plan.