Pharmacy scheme

History

The pension scheme for the pharmacy sector has managed pension rights for pharmacy employees since 1953. But it started long before that.

Ever since the first pharmacy was established in Norway, the right to operate a pharmacy has depended on a permit, and operations are subject to specific legislation.

Previously, all pharmacies were, except for public hospital pharmacies, privately owned by pharmacists. There were requirements for higher pharmaceutical education to both own and operate a pharmacy. A government ministry determined whether a pharmacy should be established or closed and where it should be located. Pharmacies were established when required or desirable for public reasons.

Legal changes and more liberal establishment

With the new pharmacy law in 2001, there was an opening for more liberal establishment and ownership. The aim was to improve accessibility and increase competition. This resulted in the establishment of more pharmacies. Today, the industry is dominated by three internationally owned chains, constituting about 75 percent of the market, while independent pharmacies and hospital pharmacies make up about 25 percent of the market.

The Pension Scheme for the Pharmacy Sector

Just as the establishment and operation of pharmacies in Norway are regulated by law, the pension scheme is also legally mandated.

As early as in 1877, pharmacists had an obligation to provide their widows with a pension. A provision for this was included in the law for the operation of pharmacies. The pharmacy industry was thus an early adopter of this approach.

Law on the pension scheme for the pharmacy sector established in 1953

The development of the welfare state gained momentum in Norway after World War II. Welfare policy was characterized by the idea that everyone is entitled to a minimum standard of living, regardless of their economic status. Schemes were meant to cover everyone and not be means-tested. Several laws on pension schemes for specific occupational groups were also established, including nurses, fishermen, forestry workers, and pharmacists.

The Law for the pension scheme for the pharmacy sector was passed in 1953. The law covers all pharmacists and permanent employees in the pharmacy sector, and it is still in effect.

The pension scheme for the pharmacy sector today

The law for the pension scheme for the pharmacy sector is closely linked to the regular public occupational pension scheme, and all pharmacists and permanent employees in the sector have the right and obligation to be members. Members have a defined benefit pension like other public pension schemes. The retirement pension is coordinated with the National Insurance Scheme, and employers and members pay a percentage of the pension basis (salary) as a premium.

According to the law for the pension scheme for the pharmacy sector, the scheme is administered by the The Norwegian Public Service Pension Fund (SPK), and should, according to administrative instructions, as far as possible, follow the regulations that other Norwegian pension funds follow.