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Soon, offers from pension companies are coming in that will attract you to your company. The sharpest look should be on rates, advises the Consumer Council.
There is a large group of employees who are not covered by the new pension account that is valid as of 2021. It only applies to those who work in private companies that have a defined contribution pension.
Erik Johansen / NTB
Published:
Starting in 2021, everyone who works in private companies with a defined contribution pension will receive a pension account. The goal is to lower the rates and make it easier to get an overview. This includes 1.5 million Norwegians.
– I am happy that my own pension account is introduced now from New Years. This will result in lower costs and employees will have a better overview of their pension savings. We also allow employees who wish to decide for themselves where they want to manage their pension savings, says Finance Minister Jan Tore Sanner (H).
Option
For those who obtain a pension account in 2021, there are several options. The deadline is May 1, 2021 to decide. This is done through the Norsk Pensjon website.
You can choose to collect all previous pension capital certificates and current pensions with the pension provider that your employer uses. This will happen automatically if you don’t make an active selection. The alternatives are to transfer only previous pension capital certificates or also the current pension payment to other pension companies.
The employer pays a fee for the current pension payment, or possibly standard compensation, if you move. In any case, you will have to pay the previous pension capital certificate commissions.
Automatic
– There is reason enough to suppose that large companies will emphasize that this is self-evident. The merger happens automatically and you, as an employee, don’t have to do anything, says Elisabeth Realfsen, specialist manager of Finansportalen at the Consumer Council.
Many people will likely benefit from the conditions the employer has negotiated, but it may still be wise to consider your right to move as well.
– For many, there will be interesting alternatives, like taking the standard compensation and buying a cheap global index fund from a self-selected provider, says Realfsen.
Fall
Public employees, those with companies with a defined benefit or hybrid pension, those who have moved abroad and those who are out of work are not covered by the future pension account.
– It almost seems now that this will apply to all employees in Norway. That is not the case. The scheme will only apply to those who work in private companies that have a defined contribution pension, Realfsen says.
She asks the large group that is not covered by the scheme to review their pensions.
– For this large group, it is still very important to ensure that fees do not eat up the performance of pension funds. You can get a full overview of the rate check from Finansportalen.
