Who can receive private AFP contractual pension?
You will find the main conditions for the AFP contractual pension scheme here. You can read more about the conditions at afp.no.
You may be entitled to a private AFP contractual pension if you are working in a private company that has a collective agreement, where a private AFP contractual scheme is part of the agreement.
It is also a requirement that you
- have turned 62
- are born in 1944 or later
- meet the conditions in “Fellesordning for AFP” - which concern conditions of employment, sickness benefit, redundancy, trade income, etc. It is “Fellesordning for AFP” that considers whether you meet the requirements. Read more about the requirements on afp.no.
- draw minimum 20 per cent national insurance retirement pension for at least one month, either before or at the same time as you take out AFP in public or privat sector. If you have turned 70, you do not need to draw retirement pension as well.
- have not previously received private or public AFP contractual pension
- have not received disability pension from NAV after turning 62
What do you get?
- The size of your AFP contractual pension depends on your earned pension rights, and when you want to start drawing your AFP contractual pension. Like national insurance retirement pension, your monthly AFP contractual pension payment will be higher if you wait to draw it, because the anticipated payment is distributed over fewer years.
- The annual lifelong part of the AFP contractual pension is calculated using 0.314 per cent of the registered pensionable income in the National Insurance Scheme, from the calendar year you turn 13 up to and including the calendar year you turn 61. Only income up to 7.1 times the average basic amount is included for each of the qualifying years.
- If you are born in 1948 or later and had the care of young children between the age of 0 - 7 before 1992, you can accumulate pension rights. This will mean a higher AFP contractual pension.
- If you draw AFP contractual pension before you turn 67, you will receive a fixed increase up to and including the month you turn 67. The life-long part of the AFP contractual pension will be reduced accordingly, so that the total value of your pension up to anticipated life expectancy will not be affected by the increase.
- If you are born between 1944 and 1962, you will receive a life-long tax-free compensatory allowance.
- AFP contractual pension will be life expectancy adjusted. This means that the payout will be lower the earlier you start the withdrawal. The reason is that the pension is distributed over the number of months based on the anticipated life expectancy, calculated from the time you start the withdrawal. Use the calculator in Your pension to see the difference in payments based on different start times.
- If you are born in the years 1944 to 1947, your annual AFP contractual pension will be 10, 20, 40 and 60 per cent respectively of the pension amount.
- AFP contractual pension is a life-long benefit that cannot be graded. If you draw AFP contractual pension, you must draw 100 per cent, unlike retirement pension where you can choose your pension percentage.
- You may combine AFP contractual pension with labour income without your pension being reduced.
Calculate your AFP contractual pension
You can calculate your future AFP contractual pension online at Din pensjon.
How long will you receive payments?
Your private AFP contractual pension is a life-long payment. In the event of death, private AFP contractual pension will be paid up to and including the month of death.
Other relevant benefits
You cannot combine AFP contractual pension with disability pension from NAV. If you are receiving disability pension from NAV and want to draw AFP contractual pension, you must forfeit your disability pension so that this will not be paid after the month you turn 62. As mentioned above, there are also many other conditions that must be met, so if you are receiving disability pension from NAV and are considering AFP contractual pension, you should contact NAV and Fellesordningen for AFP.
In some cases you may combine AFP contractual pension in the private sector with survivor’s pension from NAV.
How to apply
If you are not already drawing a national insurance retirement pension, you must apply for this retirement pension in order to be able to apply for AFP contractual pension.
The simplest way is to apply for national insurance retirement pension and AFP contractual pension in the private sector is online at Din pensjon. The AFPcontractual pension application is part of the application form for national insurance retirement pension. If you apply online, you therefore apply for national insurance retirement pension and AFP contractual pension at the same time and the processing time is shorter.
If you do not have the possibility to apply online, you must submit two applications:
- Application for retirement pension to NAV
- Application for AFP contractual pension to “Fellesordningen for AFP”.
If you are receiving retirement pension already, you must apply for AFP contractual pension directly to “Fellesordningen for AFP”. You will find paper application forms for AFP contractual pension at afp.no.
When should you apply?
It is important that you apply to draw AFP contractual pension while you are still working. If you leave your job before the time you want to draw AFP contractual pension, you may lose the right to AFP contractual pension.
You may apply at the earliest 4 months before you want to start drawing AFP contractual pension and no later than the month before you want to start drawing AFP contractual pension. After “Fellesordning for AFP” has dealt with your application, it will be forwarded to NAV who will assess the final conditions and come to a decision. You cannot apply back in time.
To or from abroad
If you are moving abroad and receiving AFPcontractual pension you may take your AFP contractual pension with you. However, you must check with NAV whether you can continue to receive your National Insurance retirement pension in the country to which you are moving.
AFP contractual pension will paid together with your retirement pension.
You may also check your payments on NAV's online pension service at Din pensjon.
Do you have any further questions about private AFP contractual pension?
The responsibility for processing a private AFP contractual pension case is shared between NAV and Fellesordningen for AFP. Therefore, you may have to inquire with both when you require information on the AFP contractual pension regulations and if you have queries about your application.
NAV calculates and pays and decides whether you are also entitled to retirement pension and considers questions about AFP contractual pension and disability pension.
“Fellesordningen for AFP” considers all the other conditions for AFP contractual pension, such as conditions of employment, sickness benefit, redundancy and trade income.
Most of the main information about your entitlements and duties is available here in English. There are also links to other more detailed information; however, some of this information is only available in Norwegian.