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143823
Increase in pension liabilities for defined contribution schemes
statistikk
2012-12-06T10:00:00.000Z
Banking and financial markets
en
tjenestepensj, Occupational pensions, pension schemes, pensions, pension payments, pension liabilities, defined contribution schemes, defined benefit schemes, individual pensionsFinancial institutions and other financial corporations, Banking and financial markets
false

Occupational pensions, 2011

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Increase in pension liabilities for defined contribution schemes

Pension liabilities in defined contribution schemes increased by 29.1 per cent from 2010 to 2011. The main reason for the increase is that more and more companies are switching from defined benefit pension schemes to defined contribution schemes.

Pension payments 2011

Total pension liabilities increased by 7.2 per cent, from NOK 1 152 billion in 2010 to NOK 1 236 billion in 2011. The largest increase in liabilities was in defined contribution schemes, with an increase of 29.1 per cent. For defined benefit schemes, the increase was 6.4 per cent.

Earned premiums for occupational pensions increased by 6.2 per cent, to NOK 82.3 billion. The biggest increase was in public pension schemes in life insurance, with an 11 per cent increase, while for the private pension schemes the highest growth was in defined contribution schemes, by 10.5 per cent.

The total pension payments increased by 8.2 per cent from 2010 to 2011, to NOK 51.3 billion. The Norwegian Public Service Pension Fund accounts for more than 40 per cent of the payments.

Definitions:

 

Public service pension schemes:

Public service pensions provide a gross pension benefit. This means that the benefit from the pension plan is coordinated with benefits from the National insurance scheme paid on retirement. The total pension payout will be at least 66 per cent of pensionable salary regardless of the level of benefits from the scheme. The agreement is in accordance with set tariffs. The main collective agreement between the Norwegian Association of Local and Regional Authorities (KS)/state and the affected wage earner organisations regulates how the pension scheme in the local authority/state should be organised.

 

Private service pension schemes:

Private pension schemes are based on net pension. This means that the benefits from the pension plan are coordinated with the National insurance scheme paid on retirement. In other words there is no coordination between the National insurance scheme and private pension schemes. The net pension scheme does not ensure total payments in the same way as the gross scheme. If the payment from the National insurance scheme paid on retirement goes down, the total pension payments go down accordingly. Net pension plans can be defined benefit or defined contribution. For defined benefit schemes the pension is normally determined as a percentage of final salary, as either a gross level including the National insurance scheme or as a net addition to the National insurance scheme. Contribution schemes are a retirement plan where the employer pays an annual agreed deposit, normally as a percentage of salary.

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