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Everyone who works in a private company with a defined contribution pension is covered by the new scheme. The employer can then collect previous defined contribution pension pension capital certificates along with current pension income in the 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, says Elisabeth Realfsen, specialist manager of Finansportalen at the Consumer Council.
Those not covered are public employees and employees of private companies with defined benefit pensions and hybrid schemes. This also applies to Norwegians who have moved abroad, as well as the more than 180,000 who are completely unemployed.
They must continue to take active steps to ensure that pension fund fees are not too high.
The fee eats up the pension
For this large group that is not part of the new pension account scheme, it is important to ensure that fees do not eat into the performance of pension funds. They should choose one of the pension providers that doesn’t have high fees, Realfsen says.
– Lower rates give you more pension, she says, suggesting you can check Finansportalen’s rate check.
You can find a full description of all your previous pension capital certificates at Norsk pensjon or at Nav. Here you can also check what type of occupational pension and what types of previous pension capital certificates or disbursed policies you really have, if you have questions about it.
Rate verification began in 2017 by encouraging those with pension capital certificates to collect them to avoid unnecessary fees.
First 1. mai
For the 1.5 million employees covered by the pension account scheme, it will be easier starting in the New Year to manage previous defined contribution pension certificates.
Here’s a deadline until May 1 to decide.
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 previous pension capital certificates or also the current pension payment to other pension companies.
Automatic
The employer pays a fee for the payment of the current pension or possibly a standard compensation, if you move. In any case, you will have to pay the previous pension capital certificate commissions.
– There is reason enough to suppose that large companies will emphasize that this is obvious. The merger happens automatically and you, as an employee, don’t have to do anything, says Realfsen.
Many people are likely to benefit from the conditions that the employer has negotiated, but it may still be wise to consider your right to move.
– For many, there will be interesting alternatives, like taking the standard compensation and buying a cheap global index fund from a provider of their own choosing, he says.
