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Occupational pensions in private

sector

in Norway

Geir Veland

17. Sep. 2007

The pension market in private sector before 2001 - DC-schemes not allowed -

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DC-market in 2005Members in DC - schemes 2002 - 2005

Kilde: FNH

0

20000

40000

60000

80000

100000

120000

140000

2002 2003 2004 2005

13113

46985

81623

130625

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DC – market in 2006Members in DC - schemes 2002 - 2006

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A shift from DB to DCNumber of employees covered. 2002 - 2006

774 companies changed their DB-scheme into a DC-scheme in 2006, and included about 15 000 employees.

Not included: company pension funds

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The industry sector: do they want to change their DB-schemes?

Norsk Industri (årsskiftet 05/06)

31 percent of the companies in the industry sector have either decided or have plans to change their DB-scheme. Cover about 30 percent of the employees.

Change in pension level

19%

Change in insurance

products

27%

From DB to DC (closing, combined schemes)

84%

Other changes 27%

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The pension market in 2007 og 2010Number of employees covered (private sector) - estimated in March 07

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Goodbye to DB – schemes in 2015?

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Goodbye ……..

”The last DB – scheme”. 1917 – 2012. You were deeply loved and you will be missed a little bit”

Or?

Is it possible to construct a new kind of a DB – scheme which can lead the market into –

”the new DB-road”?

The road has to be built before it is too late

If no action is taking place, the DB – schemes will suffer ”a silent death”

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What happens internationally?

UK LATEST NEWS: Two-thirds of final salary pension schemes

in private sector now closed to new employees (22.02.07).

2005:

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Internationally cont. USA

1978: 128 000 DB-schemes og 315 000 DC-schemes 1997: 59 000 DB-schemes og 660 000 DC-schemes The development continues (big companies in front). Example:

Armonk, NY - 05 Jan 2006: IBM today announced that it has changed its U.S. defined benefit pension

plans and that it plans to redesign its 401(k) savings plan, effective in January 2008.

Sweden DB-schemes on its way out, including public sector

Denmark DB-scheme – what is that? Civil servants

International: DC-schemes replaces DB-schemes

(exception: The Netherlands – from final salary to average salary)

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Now what? Will the changes in the pension market affect the relation between the social partners? Where are we going?Fellesordning:

Tariffavtale: Nei Ja

Nei Dagens ordninger –ytp,itp

NHO-ordning

Ja MBL,

Posten

Telenor m.fl

Ikke i Norge

(KLP)

? ??

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Norway to European Championship 2008!