Annual report 2021 KLP Group, Sustainability and KLP

Public-sector occupational pensions are the pension scheme for public sector workers and are paid for by the employer. In the public sector, the occupational pension is a complete package that has been created following negotiations between the parties in the labour market. This means that in addition to the old-age pension, it includes AFP (contractual pension) and disability and survivor’s pensions. The old-age pension is paid for life from the date of retirement.

Public-sector occupational pensions have been split into two, so those born in 1963 and after accrue occupational pension entitlement for all years in work. That means that it pays to stay in work for longer. For those born in 1962 and earlier, the rule is that 30 years of accrual time in the public sector provide for 66 per cent of salary in total pension from the occupational pension and national insurance. Note, however, that those born in 1959-1962 receive a little less than 66 per cent in total pension if they retire at age 67 even if they have full entitlement.

There are separate rules for persons with a special age limit.

As both public-sector occupational pensions and the general pension system are changing, we encourage

public-sector employees to familiarise themselves with the scheme before retirement. There may be significant differences in knowledge, pension expectations and realities among employees. Employees will benefit greatly from entering the pension scheme well before they retire.

There is a lot of useful information about public-sector occupational pensions at klp.no. For example, there are articles on retirement pensions for different year-groups. Anyone who has a pension with KLP can also log in to the pension guide on ‘My Page’ at klp.no to see how much they could receive in pension from KLP, national insurance and other pension schemes.