Lífsverk Pension Fund was founded in 1954 and is one of the oldest pension funds in Iceland. In the beginning fund membership was limited to those with an engineer's degree or equivalent, but since 2016 the fund has been open to all university graduates. Lífsverk is the only pension fund in Iceland where you need a University degree to become a fund member. However, the fund's private pension division is open to all. 

Lífsverk has in many ways been a pioneer in Iceland. The fund was the first to link benefits earned with age, meaning that the younger the fund member was, the more benefits he earned per contribution. This has since been implemented by other pension funds in Iceland. The Board of Lífsverk consists of 5 individuals, who are all fund members. Lífsverk offers favorable housing loans to it's members. Loans to fund members attribute to around 20% of the funds assets.