Pension funds

(1) A pension fund is a legally independent life insurance undertaking whose purpose is to provide cover for loss of earned income due to old age, invalidity, or death, and that 1. conducts the insurance business by way of a funded system, 2. as a rule, grants benefits only from the point when earned income ceases, or a full pension is drawn under section 42(1) of Book Six of the Social Code, whereby the general terms of insurance may provide that benefits are already made where earned income has ceased in part, or a partial pension is drawn under section 42(1) of Book Six of the Social Code, 3. may provide death benefits only to survivors, whereby a death grant limited to the amount of the usual funeral costs may be agreed for third parties, and 4. grants the insured person its own claim to benefit against the pension fund, or provides benefits as reinsurance covering the sponsoring employer's obligations.
(2) Pension funds may conduct only primary insurance business. Authorisation may be granted to them exclusively in the classes of insurance under Annex 1, points 19, 21, and 24.