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A committee made up of the party that was supposed to evaluate the consequences of introducing a pension from the first crown has not been able to agree.
– The working group has not reached a joint recommendation on and how possibly to introduce a first crown pension, but has studied various alternatives, according to the group’s report, which was delivered on Thursday.
KrF requirements in Granavolden
The trade union movement and the entire left in Norwegian politics have had pensions since the first crown as one of their most important demands.
Business organizations strongly oppose the proposal, believing it will cost businesses dearly, prevent integration, and mean the hook in the door for many smaller companies.
It was KrF in the government’s negotiations with the Conservatives, Liberals and Liberals in 2019 who got on the Granavolden platform that the issue should be investigated by a group made up of the parties in working life.
Representatives from LO, YS, NHO and Virke have sat on the committee. However, the parties completely disagree.
Reject a lower pension rate
The employee side with NHO and Virke believes that if a pension is to be introduced from the first crown, then the current minimum rate of 2 percent should be lowered so as not to increase the pension costs of companies.
It will cost companies around NOK 2 billion annually to introduce a pension from the first crown at the current rate. With the so-called cost-neutral rate that NHO and Virke want, the minimum requirement for corporate pension contributions will be lowered to 1.6 percent.
LO and YS reject the opposite:
– If this is implemented, it will result in poorer pensions for many and weaken what is already a minimal scheme. We at LO will never agree to that, LO deputy leader Peggy Hessen Følsvik tells NTB.
Nina Melsom, director of working life at NHO, says that rising costs and administration related to occupational pensions will hit many businesses with a broken back today.
She says that the first crown pensions will particularly affect companies in the services, commerce and tourism sectors that bear a large part of their costs related to wages.
Double unfair
Today, it is optional for private sector employers if they want to provide employees with pension income for all salaries (up to 12 G) or only for salaries that exceed the base amount in the National Insurance Plan (1 G) , which is currently NOK 101,351.
Of the 1.4 million employees covered by private defined contribution pension plans, more than 1 million employees do not receive a pension for the first 100,000 crowns they earn.
– For many, this means that they do not earn a pension of a significant part of their salary, says Følsvik.
She says that they are especially poorly paid women and that today they do not receive a pension from the first crown.
I do not agree with the age and the fraction of work.
The task force has also failed to formulate a common recommendation regarding questions about pension accrual for employees under the age of 20 who fill less than 20 percent of positions. LO and YS demand that they also have the right to receive a pension, but NHO and Virke are against it.
– We believe that there should be a minimum limit for registering an employee in a pension plan, says Melsom.
The report is now sent for consultation.
In ongoing negotiations on a new pension agreement in the Storting, the Labor Party has demanded that pensions be paid from the first crown.
