Glossary of Terms
Her finner du forklaringer på ord og uttrykk som er viktige for å forstå pensjon.
A
Accrual period
The period during which you have been a member of the pension scheme. To achieve full accrual, a total membership period in the public sector of at least 30 years is required.
Accrual rules
Rules for how pension savings shall take place in a pension scheme.
Adjustment factor
Number used in connection with life expectancy adjustment to calculate annual pension for persons born in the period 1943–1953.
Adjustment number
Adjustment number used to apply life expectancy adjustment to the retirement pension and the gross pension. The National Insurance divisor is divided by 13.42.
Age limit
The age limit that follows the position you are employed in, and is the point at which you must leave the position.
All-years rule
The basic principle that retirement pension from the National Insurance Scheme is accrued throughout your entire working life. It is calculated from age 13 to age 75
Annual AFP settlement (1962 and earlier)
Each year when the tax assessment is ready, an annual settlement is calculated to verify that you have received the correct AFP payment for the relevant year.
Annual disability pension settlement
Each year an annual settlement of disability pension must be carried out. The pension must be reduced if the pensioner has had income that exceeds the income limit.
B
Basic amount (G)
The National Insurance basic amount, often called G, used in calculating the National Insurance Scheme's pensions and other benefits, adjusted on 1 May each year.
Basic pension
The basic pension forms the basis for calculating retirement pension from the National Insurance Scheme
Basic pension (1962 and earlier)
Pension from the National Insurance Scheme calculated on the basis of insurance period and dependent on previous earned income.
Benefit
Payment from an insurance or pension scheme, or the National Insurance Scheme.
Benefit level
Size of the pension.
C
Child pension
Pension that children under 20 receive if a breadwinner dies. The payment may come from the National Insurance Scheme, occupational pension scheme and/or another insurance agreement.
Child supplement
If you are a retirement or disability pensioner and support children under 18 years of age, you may be entitled to a child supplement
Contractual Early Retirement Pension (AFP) – public sector (1962 and earlier)
Collectively agreed early retirement scheme that allows employees meeting certain requirements to retire with full or partial pension between age 62 and 67.
Contractual Retirement Pension (AFP) – private sector
An extra pension in private companies participating in the AFP scheme, paid for life to employees who meet certain requirements.
Conditional occupational pension (1963 and later)
If you cannot receive AFP under the new rules, you may instead receive conditional occupational pension. Applies if you become fully disabled or leave employment before age 62, among other situations.
Coordination
Distribution of total pension between the National Insurance Scheme and public occupational pension schemes. National Insurance pension is paid in full, while public occupational pension is reduced according to the Coordination Act.
Coordination - basic pension
The occupational/gross pension is reduced by a coordination deduction of up to 75% of the basic amount. The deduction is reduced for accrual.
Coordination - new accrual rules
Coordination benefits are continued by keeping 2% of the National Insurance pension account outside the coordination, plus a monetary amount of 2.5 G divided by the divisor.
Coordination supplementary pension
The occupational/gross pension is reduced by a coordination deduction of up to the full pension supplement/special supplement from the National Insurance Scheme.
D
Deferred pension
If you have previously been a member of the pension scheme, you may have accrued pension entitlements for future pension. A minimum of 1 year of membership is required to be entitled to pension.
Defined benfit scheme
Occupational pension scheme where the pension shall amount to a specific percentage of final salary.
Disability pension
Pension paid upon disability. The payment may come from the National Insurance Scheme (disability benefit), the occupational pension scheme and/or disability insurance.
Divisor
A number used in connection with life expectancy adjustment to calculate annual pension for persons born in 1954 or later.
E
Earning capacity
The ability to perform income-generating work. The term is used when calculating the degree of disability for disability pension.
F
Final pension points (1962 and earlier)
The average of the 20 highest pension points, or the average of all pension points if there are fewer than 20.
Final salary
Salary from which the pension is to be calculated. Depends on pensionable service and pensionable income.
G
Gross pension
Gross pension is calculated on the basis of membership in the pension scheme before any coordination with the National Insurance Scheme and other coordination-liable benefits.
Guarantee pension
A guaranteed minimum retirement pension benefit from the National Insurance Scheme granted to those who have low or no accrual of earnings-related pension.
Guarantee supplement
If you are born up to and including 1958 you have an individual guarantee. You may receive a guarantee supplement to ensure total retirement pension from the National Insurance Scheme and pension scheme amounts to 66% of the pension base.
I
Income limit
The annual income you may have before the disability pension is reduced.
Individual guarantee
Persons born up to and including 1958 are guaranteed to receive 2/3 of the pension base in retirement pension, subject to certain criteria.
L
Lifelong Contractual Pension (AFP) (1963 and later)
Lifelong Contractual Pension (AFP) is a supplement to retirement pension paid to employees who meet certain requirements. It can be freely combined with income without the payment being reduced.
Life expectancy adjustment
The pension you have accrued is distributed over the number of years your cohort is expected to live. As long as life expectancy increases, each cohort must work longer than the previous one to achieve the same pension.
M
Member
Person who is part of an occupational pension scheme.
Membership period
The period an employee has been a member of an occupational pension scheme.
Minimum pension
Guaranteed minimum retirement pension from the National Insurance Scheme.
Minimum pension level
Minimum level of retirement pension from the National Insurance Scheme under the old accrual rules.
N
National Insurance Scheme
Public insurance scheme for persons who live or work in Norway, or who have previously lived or worked in Norway.
National Insurance basic amount
Amount used in calculating the National Insurance Scheme's pensions and other benefits, adjusted on 1 May each year
O
Occupational pension scheme
Scheme in which the employer saves pension for its employees.
Ongoing pension
Pension currently being paid out.
P
Partial pension
Payment of part of the pension due to partial disability or partial withdrawal of retirement pension.
Pension
Regular payment of an accrued financial entitlement.
Pension account
Accrued pension entitlements in the National Insurance Scheme from pensionable income giving entitlement to retirement pension as earnings-related pension. Covers persons born in 1954 or later.
Pension accrual from year 2020
The pension is saved in a pension account at a basic rate of 5.7% of salary between 0–12 G, and 18.1% of salary between 7.1 and 12 G.
Pension age
Age when the individual's pension payment starts. The earliest point at which you can retire with retirement pension.
Pension base
Salary from which the pension is to be calculated. Depends on pensionable service and pensionable income.
Pension entitlement
Right to pension from a pension agreement.
Pensionable income
Salary that gives accrual of pension (max 12 times the basic amount).
Pension points
Factor used in calculating supplementary pension from the National Insurance Scheme.
Pension regulation
Accrued pension entitlements are regulated each year so that they maintain their value over time.
Pensioner's salary (1962 and earlier)
Retirement pensioners may be engaged and receive pensioner's salary without the retirement pension being reduced.
Pensionable service
Employment period that gives accrual of pension.
Pension supplement
Supplement that ensures pension from the National Insurance Scheme equivalent to the minimum pension level for persons who have low or no accrual of supplementary pension.
R
Retirement pension
Pension paid from an agreed age. The payment may come from the National Insurance Scheme, occupational pension scheme and/or own pension savings.
S
Special age limit
Position-determined age limit in certain occupations. Positions with a lower age limit than 72 years
Supplementary pension
Pension from the National Insurance Scheme accrued through income-generating work. Applies to persons born in 1962 or earlier.
Survivor's pension
Pension paid if a spouse/registered partner or breadwinner dies.
T
Transfer agreement
If you have been a member of several public pension schemes, the Norwegian transfer agreement ensures the different periods are combined. NBPK is not a member of the transfer agreement.
Transitional supplement
If you are born between 1963 and 1970, you may be entitled to a transitional supplement if you fully leave a public position between age 62 and 67.
Tolerance amount (1962 and earlier)
Amount used in the calculation of the annual settlement for contractual early retirement pension (AFP).
W
Withdrawal age
The member's age when withdrawal of retirement pension starts.
Work Assessment Allowance (AAP)
A benefit from NAV that ensures income during periods when, due to illness or injury, you need assistance from NAV to return to work.
40-year rule
If the total service period at the Bank is 40 years, an employee has the opportunity to retire with retirement pension earlier.
2011-supplement
If you are born 1963–1967 and have accrual before 2011, you may be entitled to a 2011-supplement to the pension from the gross scheme under certain criteria.