Pension ABC

The Norwegian Public Service Pension Fund (Statens Pensjonskasse – SPK) provides the obligatory occupational pension for government employees (and for employees in some private sector organisations).

This means:
researchers employed at universities, university colleges and some independent research institutions as well as PhD students who are employed by a Norwegian university or institution are insured with SPK.
In order to become a member of the scheme you have to

• work at least 14 hours a week for more than 60 weeks and
• receive a salary above NOK 75,641 per annum, the National Insurance Scheme’s basic amount (= G).

The compulsory occupational pension provision with SPK contains:

• retirement pensions
• disability pensions
• dependent’s pensions

SPK also offers a contractual pension under certain conditions, if you wish to gradually reduce or end working life before retirement age (see question C)

A contractual pension (Avtalefestet pensjon - AFP is an early retirement scheme for people who wish to gradually reduce or end working life between the ages 62 and 67. An AFP is only available if your employer participates in the AFP pension scheme through a collective bargaining agreement negotiated between the social partners. In order to be entitled to a contractual pension you have to meet further requirements. For example you must have had a higher remuneration (above the National Insurance Scheme’s basic amount) for a certain period of time. You can find more details about the AFP here:

https://www.spk.no/en/

Yes, you have to be employed for at least a minimum of 3 years with one or more employers that are a member of SPK.

The contributions are paid by both the employee and the employer. You have to pay a contribution of currently 2 % of your gross salary. Your employer usually pays five or six Norwegian Kroner for every Kroner you pay.

The pension scheme managed by SPK is a top-up scheme that is “coordinated” with the statutory pension of the National Insurance Scheme (NIS).This means, that your statutory pension is topped-up by the SPK to a maximum target level. In case that you have reached age 67 and worked for 30 years on a full-time employment your overall maximum old-age pension together with the old-age pension of the National Insurance Scheme would amount to 66 % of your final salary.

Example: Nora has worked 30 years in Norway with a final salary of 500,000 Kroner. (see picture below)

The final salary that is taken into account is the salary that you earned before you left Norway. For the benefits calculation the pensionable final salary is limited to 12 times the basic amount in the statutory pension scheme (in 2013 NOK 85,245 per month).

If you have worked full time the formula for your pension for one year is stated below.

The pension amount is subject to further adjustment to life expectancy by dividing the pension amount through an age factor.

Then, your pension from SPK is coordinated with the pension from the National Insurance Scheme (NIS) as mentioned above.

If you move abroad, your pension entitlement cannot be transferred to another pension fund presently.

Regarding a refund of your contributions please contact the Norwegian Public Service Pension Fund (SPK), Slemdalsveien 37, N 0304 Oslo.