Annual report 2016

The year's return

In 2016, DIP achieved a satisfactory pre-tax return of 6.7 percent.

Selected events in 2016

In 2015, DIP established a joint administration with JØP by the name of P+. Nearly two years later, it can be established that P+ has been a success. At a joint seminar for the board of directors last fall, DIP and JØP’s board of directors decided to prepare a specific schedule aiming at a merger within the next two to three years.

DIP measures regularly the member satisfaction. The engineers in DIP are more content with their pension schemes than engineers in the large commercial pension companies. 92 percent of DIP's 25,116 members are overall content with DIP, show satisfaction surveys across the pension sector.

In 2016, DIP entered into 16 new company pension agreements. The company pension agreements include more employees than earlier, and the growth of the portfolio of company pension agreements makes up an increasingly part of the total membership growth.

At the end of 2015, DIP introduced the product temporary disability pension. With temporary disability pension, which is an optional product for members on Regulations 3 and 4 (however, not publicly employed members), DIP can pay disability pension for up to 36 months in the event of temporary loss of 50 percent of the ability to work. Until now, it has only been possible to receive disability pension in the event of the ability to work being permanently reduced by at least 2/3.

The year’s result

Receipts accounted for DKK 3,222 million (DKK 2,608 million in 2016) of which payments from members accounted for DKK 897 million and return on investments DKK 2,325 million. The total costs accounted for DKK 2,795 million (DKK 2,210 million in 2015) of which pension payments accounted for DKK 1,367 million (DKK 1,312 million in 2015).

The year’s costs

The administrative costs per member fell to DKK 678 against DKK 822 in 2015. The fall in administrative costs can be explained by continued administrative efficiency improvements as well as an increase in membership. DIP has still low total annual costs measured as a percentage when compared with the rest of the pension sector.

At year-end, DIP had 25,116 members against 24,021 in 2015 and total assets of DKK 38,490 million against DKK 36,535 million in 2015.