The value of the membership
It is easy to think that the Norwegian Public Service Pension Fund is "only" involved in what you will live off when you become a pensioner. In reality, it is involved in much more. The Fund is involved in what you will live off if you are injured or become ill, and it is about providing security for your family.
It is also about providing a secure future, regardless of how this may turn out. In addition, we can also offer you a favourable housing loan, which has a positive impact on your present financial situation.
What do you get for your contributions?
“We deduct two percent of your salary for the Norwegian Public Service Pension Fund”. You have most probably read this sentence before, and thought that it refers to a penalty fee. In reality it is about the contributions which you and your employer pay into your pension fund.
An example:
If you have, for example, 350,000 kroner in yearly salary, you pay approx 5600 kroner in yearly pension contributions. A private employer can choose to keep to the same minimum contribution – and to therefore pay 5600 kroner into your pension fund.
In comparison, employers that are affiliated to the Norwegian Public Service Pension Fund pay approx 34,000 kroner per year. In just one year your employer will contribute around 29,000 kroner more to your pension than a private employer. This “salary supplement” is tax free, and you can deduct the 5600 kroner you pay yourself from your income tax return.
Pension + salary = aggregate lifetime salary
Rather than thinking that two percent of your salary is deducted every month, you can consider that a fair amount of money is actually being added. It is in reality a salary supplement and not a salary deduction.
And while the pension from a private scheme often ceases after ten yearly payments, a pension from the Norwegian Public Service Pension Fund is for life. In order to calculate your real salary, you actually have to consider your salary and pension scheme as a whole. We use the term ‘aggregate lifetime salary’.
A good pension for life
An occupational pension from the Norwegian Public Service Pension Fund, combined with National Insurance Scheme payments, gives you one of Norway’s best pension schemes. Read more about:
- Retirement pension
- Contractual pension (AFP)
- Disability pension
- Spouse pension/ dependent’s pension
- Children´s pension
Housing loan
The Norwegian Public Service Pension Fund's housing loan is a membership benefit which provides one of the market's lowest interest rates. The current maximum loan is NOK 1,700,000 per member. The loan can be used to buy a house or for refinancing, renovation and estate settlement.
Good insurance schemes
The Norwegian Public Service Pension Fund has favourable insurance schemes that provide security for you and your family.
The group life insurance scheme from the Norwegian Public Service Pension Fund is a security net for the family of any employee who dies before retirement age. Occupational injury insurance provides compensation for loss of earned income in the case of occupational injury and illness.