Wednesday, January 26

Retirement pension from the National Insurance Scheme and the occupational pension should be taken out at the same time

  • Fredrik Anspach

    Head of Pension, Oslo Pensjonsforsikring AS

The trap someone actually falls into is to take out an old-age pension from Nav early and the occupational pension when you turn 67 years old.

Debate
This is a debate post. Opinions in the text are at the writer’s expense.

In a column in Aftenposten on 2 January, Geir Martinussen sheds light on the so-called «coordination trap». I think the article deserves a comment.

Let me first reassure those who were worried about reading what Martinussens wrote: You, as public employees, are guaranteed one of the best overall pensions in Norway when you choose to end your professional career.

The figures Martinussen presents are set at the forefront and apply to very few of you. The majority of employees in the public sector leave at the age limit, or when they turn 67, and they are thus little affected by his examples.

The possible effects that Martinussen describes apply in practice to very few people. The majority of those born before 1954 and working in the public sector have already retired from both Nav and the occupational pension scheme.

In addition, this is a group that has benefited relatively well from the changes in the National Insurance Scheme and occupational pensions, as the occupational pension largely compensates for the life expectancy adjustment. If there had been no pension reform, this group would not have benefited much from working long hours, beyond pay and the joy of working.

This means that the total paid pension will be lower than it would have been with a simultaneous withdrawal

The trap someone actually falls into is to take out an old-age pension from Nav early, for example at the age of 62, and the occupational pension when you turn 67. Then a deduction is made for an old-age pension from Nav as if it were taken out at the same time as the occupational pension. This means that the total paid pension will be lower than it would have been with a simultaneous withdrawal.

One of the most important things to keep in mind when considering ending your professional career in the public sector is thus to take out an old-age pension from the National Insurance Scheme and the occupational pension at the same time. You should also not wait with the withdrawal for too long after the age limit.

We who work with public service pensions spend a lot of time informing about this and other important matters that apply to our members.

Reference-www.aftenposten.no

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