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Defined contribution pension for employees

Your employer has entered into an agreement with Gjensidige on defined contribution pensions. The following information provides an overview of the pension and associated risk cover in regards of disability and death. 

An Introduction to Contribution Pension

Payments from the pension scheme will be made in addition to payments from the Norwegian National Insurance Scheme.

This information is in general terms. In the event of any doubt, it is the main agreement’s text, insurance certificate and conditions which apply. If you have any questions contact your employer, who will offer guidance or put you in touch with specialists at Gjensidige.

You will find specific details regarding your pension plan and membership when you are logged in at www.gjensidige.no.

What the agreement may cover

  • Savings
  • Disability pension
  • Cohabitant or spouse pension
  • Child’s pension

Definitions of spouse, cohabitants, children, etc. can be found in your insurance documents. 

  • In the event of disability, an annual disability pension will be paid. Full payment conditional on 100 % disability and full contribution time
  • In the event of death, an annual cohabitant or spouse pension will be paid
  • In the event of death, an annual child’s pension will be paid

Defined contribution pension

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For you as an employee, a contribution-based occupational pension means that the company makes a monthly contribution on your behalf to your old-age pension account. The size of your pension will depend of the size of the contributions, the length of time you have been saving and the return on your savings capital.

Pension capital is the result of

  • Contributions
  • Return
  • Time

Pension capital is paid out as a pension over no less than 10 years / until the age of 77. When you first sign up to the pension scheme, you as an employee will receive an insurance certificate which includes information about:

  • Your contribution size
  •  Your expected future old-age pension and guidance regarding the conditions which form the basis of the calculation of pension size
  • Your investment choice and the associated risks

You will then receive information about your pension scheme membership every year.

The pension scheme does not include any tax obligations on your part until it is paid out when you retire. Pension payments are taxed as pension income.

A pension account has been created for you wich you will find when you are logged on at www.gjensidige.no. Here you will also find an overview of all your commitments – both private and through your employer.

Investment choices

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When you sign up to the pension scheme, your pension capital is added in the pension profile your employer has set up. You can choose how your pension capital will be managed by choosing between pension profiles with different proportions allocated to the equity fund and fixed income fund according to defined portfolios.

You can change your pension profile by logging in at gjensidige.no.

A portfolio where a small share of your pension capital is in the equity fund is lower risk, but there is also a lower rate of return over time. On the other hand a greater share of your pension capital in the equity fund will give a greater rate of return over time, but will also involve a greater risk of fluctuations during the saving period.

Safe (Trygg)

20 % in equity fund and 80 % in fixed income fund. This is ideal for those who want a low risk solution and are perhaps proaching retirement age.

Balanced (Balansert)

50 % in equity fund and 50 % in fixed income fund. This is ideal for those who want to take more of a risk and perhaps have a while before they reach retirement age.

Offensive (Offensiv)

80 % in equity fund and 20 % in fixed income fund. This is ideal for those who want a higher risk solution and will not retire for many years.In the last seven years before retirement age, the shares of your pension capital in Balanced and Offensive will be stepped down to the Safe pension profile in order to reduce the risk of great changes in value in the years leading up to retirement age.

Age-adjusted (Alderstilpasset)

This profile adjusts your equity and fixed income fund shares based on your age. The share, and thus also the risk, reduces gradually as you become older. When you reach retirement age the equity fund share will be 20 %.

Free choice (Fritt fondsvalg) – if available

If you do not want a ready-prepared fund solution, you can decide the distribution between the equity and fixed income funds yourself. You can do that under Change fund/Choose from free funds when you are logged in.

What will happen in the event of disability or death?

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Disability

Payment contribution insurance

Payment contribution insurance ensures that contributions are still made to your pension account in the event that you become unable to work. Payments are made according to the degree of incapacity.

Disability pension

Full disability pension is paid on the condition that you have been a member for at least 30 years, calculated from date of employment to retirement age. In the event of shorter membership time, the pension will be scaled down accordingly.

Death

Spouse’s pension and child’s pension

Spouse’s pension and child’s pension is paid if the member dies during the insurance period.

Pension capital

In the event of death pension capital will be paid as a pension to children, spouses/registered partners /cohabitants in a prioritised order or as a cash value to the estate of the deceased person if none of the above exist.

What happens when I retire or resign?

In the event that retirement age has been reached

Due to amendments to the Norwegian National Insurance Scheme and pensions acts it is possible as of 1 January 2011 to start drawing your occupational pension from the age of 62.

You will receive a letter from Gjensidige before you turn 62. This will provide you with an overview of your saved balance as well as an estimate for the annual pension payment depending on when you start drawing your pension between the age of 62 and 67 years.

You will be asked to decide when you will start drawing your pension. The pension will normally be paid for at least 10 years, but will in any case be paid until you reach the age of 77.

When I resign

If you have been a member of the company’s occupational pension scheme for longer than 12 months, you will retain the right to your pension capital. A pension capital certificate will be issued. You will also be asked whether you would

like to continue contributing to your pension and about payment contribution insurance and any disability or survivors insurance.

Tax

The premium paid to the defined contribution scheme, both contribution and risk, is not subject to fringe benefit taxation.

Pension payments are taxed as pension income.