Jensen wants lifetime pension account

Jensen wants lifetime pension account for private sector

The Government proposes that all employees in the private sector should collect their entire pension in a separate account that follows them throughout their working life.

1.4 million workers in the private sector will gather all pension contributions from different employers throughout their working life, according to the Norwegian Department of Finance (Finansdepartementet).

– This gives employees more retirement for each penny saved as the management becomes more efficient, says Minister of Finance, Siv Jensen (Progress Party).

It is up to the individual if you want to manage retirement pension funds from former employers at the current workplace, or if the employee wishes to collect everything from a pension provider of their own choice.

Rule change

The Government will also abolish the rule that the employee must have been employed for at least 12 months in order to bring with them earned pension capital at a change of jobs.

– This gives better pension earnings for employees with short employment, Jensen states.

According to the Organisation for Norwegian businesses (NHO), this change will cause the companies an additional cost of NOK 300 million, writes DN.

The Leader of YS, Erik Kollerud, says the Government’s proposal is in line with what the employee organisation proposes.

– YS has been working for a long time to give employees greater influence and an overview of the management of their own pension funds. We are pleased that the government has listened to our input, Kollerud comments.

The proposals are now sent to the Norwegian Parliament for consideration.

© NTB scanpix / #Norway Today