The government will raise the age limit in the state. Ådne Cappelen (70) says no, thank you. – E24

In March, researcher Ådne Cappelen from Statistics Norway (SSB) turned 70. Therefore, the age limit in the state was reached and he had to leave Statistics Norway.

– I think it was perfectly fine. I don’t lull myself into the belief that I’m as productive in my 70s as I am in my 50s or 60s. It’s time to let younger people go, he says.

The researcher believes that it is incorrect to believe that a long experience exceeds the age of 70 years. But the government will give Cappelen and other government employees the right to work until they turn 72. He proposes to increase the age limit in the state.

In early December, the Ministry of Labor and Social Affairs sent the case for consultation.

Steinar Holden (59), professor of economics at the University of Oslo, is the government’s number one principal investigator in economics and working life. He has chaired a large number of public committees and does not think it is a good proposition.

– I want to keep the age limit of 70 years, he says.

I would rather have voluntary agreements

Instead, Holden will focus on voluntary agreements between the employer and the individual employee to possibly work after 70. It will be more flexible.

There is already a scheme for this. It makes it possible for government employees to work off retiree wages after retirement.

– But the scheme has a number of limitations. They need to be removed or relaxed, and the scheme should be used more, Holden says.

Same income as before

Cappelen has reached the age limit of 70, but is still working. You have reached an agreement with Statistics Norway to work a certain number of hours under pension conditions at NOK 214 per hour. But it will not be part of the ordinary activities of Statistics Norway.

– I will not leave out the younger researchers, he says.

For this reason, he participates in temporary jobs and projects financed by the Research Council.

– If I work as much as a full-time job, along with the pension I will earn about the same as before, says Cappelen.

He fully agrees with Holden that voluntary agreements are better than an increased age limit in the state.

Older employees can be expensive

Holden’s main objection is that the productivity of workers over 70 varies greatly. In addition, public employees have greater job security than private employees. Older employees also tend to have high salaries.

In short, this can lead to the state being left with employees who contribute very little in relation to their salary. At the same time, there will be those who can still contribute a lot. So flexible schemes like the retirement pay are better than a higher age limit for everyone, Holden says.

In 2018, half of the 69-year-olds working in the state worked in universities and colleges. Here, both physical wear and tear and opportunities for employers to measure productivity are probably less than for carpenters and cleaning personnel.

Holden has had his entire working life in college.

– There are big productivity differences between 70-year-olds in all workplaces, also in universities, he says.

The government sends a “signal”

In the consultation memorandum, the ministry sees an increase in the age limit as a signal for the parties in working life:

• Towards the workers “Raising the upper age limit will give a signal to younger workers that the authorities are happy to see their careers span more than 70 years.”
• In relation to companies, the age limit in the state will be increased “It could be a signal for private companies and the municipal sector to eliminate the internal age limit of the company.”

The state pension has changed

Until this year, pension rules were such that there was little to be gained from staying longer at work in the state.

But starting in 2020, income in public service pensions (the employer’s pension) will change for those born in 1963 and later. Several years of work will lead to a higher pension, as is the case in the private sector.

Relatively few work in the state after 70 years.

– In the future, there may be more because the financial gain from this increases with the new pension rules. So a 72-year limit will likely create more conflict, to the detriment of both the employee and the employer, Holden says.

In 2019, around 450 civil servants in their 70s obtained a pension for the first time. Just over 3,000 government employees were 61 years old in 2018.

The ministry also believes that pension rules will change “Much more than today will work towards 70 years”. Therefore, an increased age limit will affect more than today.

You want the same age limit

The Ministry also refers to the need to have equal rules in the public and private sectors. In 2015, the age limit was raised to 72 years in municipalities and private companies.

Holden doesn’t think this is a good argument.

– The objections to the age limit of 72 years are practically the same throughout the working life. But strong job security presents special problems in the state, he says.

May cause more conflict

Holden also sees other issues with increasing the age limit:

• Government agencies will be more reluctant to hire people in their 60s. They may risk having to hire them for several years after productivity has dropped.
• There may be several conflict-ridden work life endings. The number of years possible with weak contributions at work is increasing. Therefore, the employer’s profit increases by forcing him to resign.

The Ministry mentions some of them in the consultation memorandum. There may be more labor disputes with government employees getting stuck. Various “You may get an unworthy diversion from working life.”

But it also provides a greater opportunity to keep people after 70: “Increasing the age limit gives the state a better opportunity to retain workers with particular experience, many of whom have the best skills, for longer.”