Agreement Based Pension (AFP) (discontinued), 2002

Agreement Based Pension (AFP)

The AFP is a pension scheme for early retirement. It is linked to the collective agreement between LO and NHO. The scheme was established in connection with the settlements of wages in 1988, and was put into effect from the 1^{s t} of January 1989. The objective is to offer early retirement for those who want to reduce their work effort before they reach the ordinary retirement age for national insurance/ social security (67 years). One has to be 62 years to be able to use the AFP.

Operating income did not cover the pensions in 2002. Pensions increased by NOK 90 million from 2001 to 2002, to NOK 2 124 million. The loss had to be covered by transactions from the insurance fund. The AFP had larger income than expenses in 2000 and 2001, NOK 80 and 0.2 million respectively. The insurance fund was NOK 1 013 million by the end of 2002.

Total assets fell by NOK 353 million from 2000 to 2001, to NOK 1 175 millon. The decline came from reduced deposits and other assets. Total assets were unchanged from 2001 to 2002.

Joint Pension under Collective Agreement (FTP)

This pension scheme was established between LO and NHO in 1960. The scheme was made to give retirement pension to their members, and widow's pension and death grant for dependents. A combination of public retirement pension and FTP was meant to give the workers a pension equivalent to about 60 per cent of their wage. New entries were stopped with the introduction of the National Insurance from 1 January 1967. It was then decided to orderly wind up the FTP. Those who had earned rights from the FTP-scheme got these pensions in addition to pensions from the National Insurance.

The number of pensions will fall in the years to come because of the orderly wind up of the FTP-scheme. Pension costs will then be reduced. The pensions amounted to NOK 34 million in 2002, while they were NOK 37 million 2001. The pensions were NOK 41 million in 2000. The income of the FTP-scheme will not cover the pensions due to the wind up. The differences are covered by the insurance fund. The insurance fund was NOK 209 million by the end of 2002.

Total assets amounted to NOK 263 million, being NOK 3 million higher than in 2001, but NOK 14 million lower than in 2000.

Tables:

• Table 1 Agreement Based Pension. Balance sheet by financial instrument. 31 December. Million kroner
• Table 2 Agreement Based Pension. Profit and loss account. 31 December. Million kroner
• Table 3 Joint Pension under Collective Agreement. Balance sheet by financial instrument. 31 December. Million kroner
• Table 4 Joint Pension under Collective Agreement. Profit and loss account. 31 December. Million kroner