A report commissioned by Statistics Norway evaluates potential reforms to Norway’s private sector AFP (Additional Pension Fund) scheme. The current system, a collectively bargained benefit tied to seniority at retirement, risks excluding workers who leave AFP-covered firms late in their careers. The analysis proposes a temporary three-tier model: maintaining existing rules for older cohorts, introducing a seniority-based pathway for those with 18 years of accrual and 7 years post-50, and an accrual-based scheme for younger workers. Two funding alternatives are examined—contribution/benefit-neutral and premium-neutral—to ensure full funding by 2050. The report highlights trade-offs between benefit levels, worker inclusion, and financial sustainability, emphasizing that no single design can fully balance all objectives. Findings suggest the three-tier approach increases inclusivity but raises transition costs compared to a pure accrual model.
Source: Statistics Norway (Statistisk sentralbyrå).
Text/data reproduced from https://www.ssb.no/.
Licence: Creative Commons Attribution 4.0 International (CC BY‑4.0).
Licence link: https://creativecommons.org/licenses/by/4.0/
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