Conditions for drawing AFP
To be entitled to AFP, the employee must be in a public sector position up to the time of drawing the pension, which may be no earlier than age 62. The pension is paid until age 67.
Requirements apply to both:
- Accrual in the National Insurance Scheme
- Period of membership in the public occupational pension scheme
These requirements may vary between pension providers, and it is therefore recommended that you obtain specific information from your own pension scheme.
Please note that AFP cannot be combined with the following benefits from the National Insurance Scheme:
- Work assessment allowance
- Disability benefit
- State retirement pension
Calculation of AFP
AFP is calculated according to the former model in the National Insurance Scheme, which consists of:
- Basic pension
- Supplementary pension
- A special AFP supplement
From age 65, the benefit may instead be calculated according to the rules of the occupational pension scheme, if this results in a higher payment. In such cases, AFP amounts to 66% of the pension basis, provided that the period of membership is full (30 years).
Reduction against earned income and settlement
Earned income (pensionable income in the National Insurance Scheme) may lead to a reduction in AFP. When applying for AFP, expected earned income must be stated.
If actual income differs by more than NOK 33,842 (equivalent to 26% of the National Insurance Scheme's basic amount), the pension will be recalculated. This may result in a settlement, where either:
- Overpaid pension must be repaid
- Underpaid pension will be paid out
From age 65, somewhat more favourable rules apply to earned income in the municipal sector and in health trusts.
AFP – three variants across the two sectors
AFP in the public sector has two different variants depending on when you were born. The scheme distinguishes between those born before 1963 (the older group) and those born after 1962. For the younger group, the scheme resembles AFP in the private sector and provides a higher pension the longer you remain in employment.
| Feature | Public sector – two variants, with a new model for those born after 1962 |
Private sector |
|---|---|---|
| Lifelong benefit |
No, for the older group. Yes, for those born after 1962. |
Yes |
| Requirement to leave employment |
Yes, fully or partly for the older group. No, for those born after 1962. |
No |
| Requirement to draw state retirement pension simultaneously | No | Yes |
| Accrual |
See separate article for the older group. 4.21% of income up to 7.1G for those born after 1962. |
0.314% per year of pensionable income |
| Conditions at age 62 |
Must be in the public sector position at the time of drawing (applies to all). Gradual transition to 7 of the last 9 years in an AFP organisation under the new AFP model. |
7 of the last 9 years with a private AFP-covered company |
| Income reduction and settlement |
Yes, for the older group. No, for those born after 1962. |
No |
| Alternative if entitlement is not met |
Not for the older group. Conditional occupational pension for those born after 1962. |
No |
Read more about the rules for AFP in the public sector – if you were born after 1962.
Read about AFP in the private sector for more information on conditions and calculation in the private sector.
