Annual Report 2023KLP Group, Sustainability Report and KLP

Your retirement pension from the public-sector occupational pension scheme gives you lifelong payments, and security for you and your family if you get sick or the worst should happen. 

The pension is the income you will be living on in old age. How much you receive in pension depends on your salary, how many years you work, and when you retire. In Norway, everyone has the right to a retirement pension from the National Insurance scheme (NAV), whether they work in the private or the public sector. In addition to your pension from NAV, employers contribute to pensions for their employees. While private-sector pensions vary, all public-sector employees have the same pension scheme. 

LIFELONG PENSION 
The population is getting older all the time, and we all want a secure old age. The retirement pension from the public-sector occupational pension scheme is paid lifelong.

IF YOU CANNOT WORK 
If you become disabled and cannot work as much as before, you can draw a disability pension through the public-sector scheme. This pension can be paid if you are between 20 and 100 per cent disabled. As a rule, disability pensions can be paid up to age 67 or the age limit for your job if this is lower. When the disability pension ceases, the retirement pension takes over to provide you with an income.

SECURITY FOR THE FAMILY 
The public-sector occupational pension also provides security for your loved ones. If you die and leave a spouse and possibly children under 20, they will receive a survivors’ pension from KLP. The spouse’s pension is paid lifelong.

CHECK YOUR PENSION FIGURES 
You’re probably wondering how much you will receive in pension. This varies from person to person and depends, among other things, on how long and how much you have worked. To find out more, our members can check their pension by visiting klp.no/sjekkpensjon. As a member, you can also consider whether you want to save more of your own money for your old age. 

The rules for contractual early retirement pensions (AFP) and pensions for those with special age limits born in 1963 or later will be the most important changes within public-sector occupational pensions in 2024. The enrolment limit for nurses will also be removed and the Storting has entered into an agreement for an improved National Insurance scheme.

AFP for those born in 1963 or later and working in the public sector is now a lifetime pension, in line with the model from the private sector. The Government recently put forward some proposed changes. It is expected that the Storting will adopt the rules in 2024 and that they will apply from 2025 when those born in 1963 turn 62.

A key feature of the new scheme is that AFP should be paid out lifelong. Pension entitlements will be accrued by setting aside a percentage of pensionable income, which is mainly salary, which the employee earns from the age 13 to 61. There will also be an option to draw AFP from age 62. This means that AFP can be taken alongside salary or retirement pension without affecting the benefits. However, the yearly pension will be larger if you defer. Note also that AFP cannot be graduated or re-started after it has been stopped. It is also easier to switch between public and private-sector jobs with AFP without losing the right to AFP. Note that AFP will be a lifetime qualification scheme, which means that certain conditions have to be met. Some of these must be met at 62 years of age, while others must be met at the time when AFP is taken.

New pension rules for those with a special age limit

The Government and the parties in the public sector reached an agreement in late summer 2023 which provides a long-term pension solution for those who have special age limits and who were born in 1963 or after. According to the agreement, the retirement age for these will also be gradually increased in line with other age limits in the pension system.

A lifetime supplement will be introduced that will be paid in addition to ordinary pension in order to provide the same level of pension as those who have a normal age limit. The supplement is a percentage calculated from pensionable income.

To receive the full special age supplement, you must have worked in an average full-time position with a special age limit for at least 30 years. If the accrual time or average job percentage is lower, the supplement will be reduced accordingly. It will also be capped if you work after age 65. 

The Government will draw up legislative proposals in line with the agreement between the parties and then submit them to the Storting. This could happen during 2024. The new rules are intended to apply from 1 January 2025. KLP cannot calculate the special age supplement until the rules have been finalised.

Which professions should still have a special age limit is a separate decision to be taken later. It is not clear when this work will begin.

Storting to consider the proposals for improved National Insurance

In December, the Government proposed changes to the pension system for those born in 1964 or later. The proposals follow the advice from the Pensions Committee and aim to ensure a more fair pension system. It is proposed that:

• Age limits in the National Insurance scheme should be gradually increased
• Retirement pensions for those in receipt of disability pensions should be improved
• The determination of minimum benefits should be improved

The Storting will adopt a policy position on the proposals in spring 2024. The Ministry may then draft a bill.

The enrolment limit for nurses is changing
The Storting has decided that the lower limit in the Nurses’ Pensions Act should be removed, but it is not currently clear when this will take effect. Today, a nurse must work in at least a 20 per cent position to be entitled to membership of the nurses’ pension scheme. The 20 per cent enrolment threshold applies until the law has been changed. 

For retired nurses, the change in the law means that you can no longer work without affecting your pension payment. You can still work on a pensioner’s salary without this having any impact on the pension payment. 

The Storting has asked the Government to allow retired nurses to work in smaller positions in the public sector. This proposal is to be discussed with the parties involved, and the Government will reply to the Storting before the amendment enters into force.

You can earn more without AFP being reduced
From i January 2024, you can earn more money alongside AFP (contractual pension) without affecting this pension. The so-called tolerance limit has beens increased from NOK 30,000 to 0.26 G, and is now NOK 30,881. G stands for the basic amount in the National Insurance scheme, which is adjusted with effect from 1 May each year. This tolerance amount applies if you have worked in a municipality or county authority and were born in 1962 or before. For those receiving AFP from the Government Pension Fund, other rules apply.

New rate for pensioner’s salary 
From 1 January 2024, the rate for pensioner’s salary was changed from NOK 233 per hour to NOK 245 per hour.

Supplement to pensioner’s salary in case of recruitment problems.

From 1 January 2024, municipalities and county authorities can offer retirement pensioners an addition to their pensioners’ salary. This applies to professions where there are recruitment problems, provisionally until 31 December 2025.

The reason is that many municipalities and county authorities are experiencing high demand for labour, where pensioners working on a pensioner’s salary can be of use. The ordinary pensioner’s salary is not sufficiently attractive for some experienced workers with greater skills. By increasing the rate, it is hoped to make it more attractive for them to continue working. 

Increased pensioner’s salary for working with refugees from Ukraine will be maintained
Retirees with AFP or a retirement pension from KLP can work with refugees from Ukraine for a special pensioner’s salary of NOK 300 per hour without their pension being reduced.  

New National Insurance benefits for survivors apply from 2024
The Storting approved new National Insurance benefits for survivors in 2021, which apply from 1 January 2024.

• The survivors’ pension from NAV has been converted into a time-limited adjustment allowance The support is provide assistance for self-help in an adjustment period after the death. 
• The children’s pension has an increased rate and the right is extended from age 18 to age 20.

New pension rules for those with a special age limit

The Government and the parties in the public sector reached an agreement in late summer 2023 which provides a long-term pension solution for those who have special age limits and who were born in 1963 or after. According to the agreement, the retirement age for these will also be gradually increased in line with other age limits in the pension system.

A lifetime supplement will be introduced that will be paid in addition to ordinary pension in order to provide the same level of pension as those who have a normal age limit. The supplement is a percentage calculated from pensionable income.

To receive the full special age supplement, you must have worked in an average full-time position with a special age limit for at least 30 years. If the accrual time or average job percentage is lower, the supplement will be reduced accordingly. It will also be capped if you work after age 65. 

The Government will draw up legislative proposals in line with the agreement between the parties and then submit them to the Storting. This could happen during 2024. The new rules are intended to apply from 1 January 2025. KLP cannot calculate the special age supplement until the rules have been finalised.

Which professions should still have a special age limit is a separate decision to be taken later. It is not clear when this work will begin.

Storting to consider the proposals for improved National Insurance

In December, the Government proposed changes to the pension system for those born in 1964 or later. The proposals follow the advice from the Pensions Committee and aim to ensure a more fair pension system. It is proposed that:

• Age limits in the National Insurance scheme should be gradually increased
• Retirement pensions for those in receipt of disability pensions should be improved
• The determination of minimum benefits should be improved

The Storting will adopt a policy position on the proposals in spring 2024. The Ministry may then draft a bill.

The enrolment limit for nurses is changing
The Storting has decided that the lower limit in the Nurses’ Pensions Act should be removed, but it is not currently clear when this will take effect. Today, a nurse must work in at least a 20 per cent position to be entitled to membership of the nurses’ pension scheme. The 20 per cent enrolment threshold applies until the law has been changed. 

For retired nurses, the change in the law means that you can no longer work without affecting your pension payment. You can still work on a pensioner’s salary without this having any impact on the pension payment. 

The Storting has asked the Government to allow retired nurses to work in smaller positions in the public sector. This proposal is to be discussed with the parties involved, and the Government will reply to the Storting before the amendment enters into force.

You can earn more without AFP being reduced
From i January 2024, you can earn more money alongside AFP (contractual pension) without affecting this pension. The so-called tolerance limit has beens increased from NOK 30,000 to 0.26 G, and is now NOK 30,881. G stands for the basic amount in the National Insurance scheme, which is adjusted with effect from 1 May each year. This tolerance amount applies if you have worked in a municipality or county authority and were born in 1962 or before. For those receiving AFP from the Government Pension Fund, other rules apply.

New rate for pensioner’s salary 
From 1 January 2024, the rate for pensioner’s salary was changed from NOK 233 per hour to NOK 245 per hour.

Supplement to pensioner’s salary in case of recruitment problems.

From 1 January 2024, municipalities and county authorities can offer retirement pensioners an addition to their pensioners’ salary. This applies to professions where there are recruitment problems, provisionally until 31 December 2025.

The reason is that many municipalities and county authorities are experiencing high demand for labour, where pensioners working on a pensioner’s salary can be of use. The ordinary pensioner’s salary is not sufficiently attractive for some experienced workers with greater skills. By increasing the rate, it is hoped to make it more attractive for them to continue working. 

Increased pensioner’s salary for working with refugees from Ukraine will be maintained
Retirees with AFP or a retirement pension from KLP can work with refugees from Ukraine for a special pensioner’s salary of NOK 300 per hour without their pension being reduced.  

New National Insurance benefits for survivors apply from 2024
The Storting approved new National Insurance benefits for survivors in 2021, which apply from 1 January 2024.

• The survivors’ pension from NAV has been converted into a time-limited adjustment allowance The support is provide assistance for self-help in an adjustment period after the death. 
• The children’s pension has an increased rate and the right is extended from age 18 to age 20.

New pension rules for those with a special age limit

The Government and the parties in the public sector reached an agreement in late summer 2023 which provides a long-term pension solution for those who have special age limits and who were born in 1963 or after. According to the agreement, the retirement age for these will also be gradually increased in line with other age limits in the pension system.

A lifetime supplement will be introduced that will be paid in addition to ordinary pension in order to provide the same level of pension as those who have a normal age limit. The supplement is a percentage calculated from pensionable income.

To receive the full special age supplement, you must have worked in an average full-time position with a special age limit for at least 30 years. If the accrual time or average job percentage is lower, the supplement will be reduced accordingly. It will also be capped if you work after age 65. 

The Government will draw up legislative proposals in line with the agreement between the parties and then submit them to the Storting. This could happen during 2024. The new rules are intended to apply from 1 January 2025. KLP cannot calculate the special age supplement until the rules have been finalised.

Which professions should still have a special age limit is a separate decision to be taken later. It is not clear when this work will begin.

Storting to consider the proposals for improved National Insurance

In December, the Government proposed changes to the pension system for those born in 1964 or later. The proposals follow the advice from the Pensions Committee and aim to ensure a more fair pension system. It is proposed that:

• Age limits in the National Insurance scheme should be gradually increased
• Retirement pensions for those in receipt of disability pensions should be improved
• The determination of minimum benefits should be improved

The Storting will adopt a policy position on the proposals in spring 2024. The Ministry may then draft a bill.

The enrolment limit for nurses is changing
The Storting has decided that the lower limit in the Nurses’ Pensions Act should be removed, but it is not currently clear when this will take effect. Today, a nurse must work in at least a 20 per cent position to be entitled to membership of the nurses’ pension scheme. The 20 per cent enrolment threshold applies until the law has been changed. 

For retired nurses, the change in the law means that you can no longer work without affecting your pension payment. You can still work on a pensioner’s salary without this having any impact on the pension payment. 

The Storting has asked the Government to allow retired nurses to work in smaller positions in the public sector. This proposal is to be discussed with the parties involved, and the Government will reply to the Storting before the amendment enters into force.

You can earn more without AFP being reduced
From i January 2024, you can earn more money alongside AFP (contractual pension) without affecting this pension. The so-called tolerance limit has beens increased from NOK 30,000 to 0.26 G, and is now NOK 30,881. G stands for the basic amount in the National Insurance scheme, which is adjusted with effect from 1 May each year. This tolerance amount applies if you have worked in a municipality or county authority and were born in 1962 or before. For those receiving AFP from the Government Pension Fund, other rules apply.

New rate for pensioner’s salary 
From 1 January 2024, the rate for pensioner’s salary was changed from NOK 233 per hour to NOK 245 per hour.

Supplement to pensioner’s salary in case of recruitment problems.

From 1 January 2024, municipalities and county authorities can offer retirement pensioners an addition to their pensioners’ salary. This applies to professions where there are recruitment problems, provisionally until 31 December 2025.

The reason is that many municipalities and county authorities are experiencing high demand for labour, where pensioners working on a pensioner’s salary can be of use. The ordinary pensioner’s salary is not sufficiently attractive for some experienced workers with greater skills. By increasing the rate, it is hoped to make it more attractive for them to continue working. 

Increased pensioner’s salary for working with refugees from Ukraine will be maintained
Retirees with AFP or a retirement pension from KLP can work with refugees from Ukraine for a special pensioner’s salary of NOK 300 per hour without their pension being reduced.  

New National Insurance benefits for survivors apply from 2024
The Storting approved new National Insurance benefits for survivors in 2021, which apply from 1 January 2024.

• The survivors’ pension from NAV has been converted into a time-limited adjustment allowance The support is provide assistance for self-help in an adjustment period after the death. 
• The children’s pension has an increased rate and the right is extended from age 18 to age 20.