More people have longer working life with AFP

Worker, ConstructionIllustration. Worker. Photo: pixabay.com

The new scheme for contractual pensions (AFP) in the private sector keeps people at work for longer, as was the purpose, LO and NHO have concluded in an evaluation report.

 

The report will not be published until Thursday, but the Newspaper News Agency Bureau have received the main features, confirmed by sources on both the employer and the employee side.

First and foremost, it’s concluded that the scheme, introduced in 2010, has achieved the goal of keeping more people at work for longer. The retirement age for public sector employees under the scheme has gone up significantly in recent years.

LO’s concern about the ‘holes’, where people fall outside the scheme because the qualification requirements have been tightened, are confirmed in the evaluation.

One of the reasons is that you must be employed in a company with a collective agreement when you retire, and you must have been employed by an AFP company for seven of the last nine years to gain access to the scheme.

The investigation shows that NHO’s requirement has been met, namely that the scheme, overall, hasn’t become more expensive for the companies.

The report is part of an agreement between NHO and LO to evaluate the scheme by the end of 2017, and it will be used as a factual basis for further use.

The scheme implies that contractual pensions can be taken in addition to old-age pensions in the National Insurance Scheme from 62 years of age.

The supplement
is provided to anyone who has an AFP agreement. The earlier you leave work, the lower the annual amount will be, since it is distributed over several years.

The supplement is given for life, and can be freely combined with payroll income, and pensions from the National Insurance Scheme.

 

NTB Scanpix / Norway Today

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