Changing jobs? Check your AFP entitlement first

– We receive many questions about AFP, which is currently a widely discussed topic in the media. Some people are concerned about losing their entitlement to AFP if they change jobs, says Lars Martin Bjørnsrud Hopmoen, pension expert and adviser at the customer service centre of the Norwegian Public Service Pension Fund (SPK).

SPK's customer service centre handles around 140,000 enquiries from members each year. Many of these concern lifelong contractual pension (AFP) in the public sector. For those born in 1963 or later, AFP is an additional lifelong payment on top of their retirement pension. Different AFP conditions apply to those born in 1962 or earlier.

Changing jobs could affect your AFP entitlement

– If you are considering changing jobs, you should check whether your new employer offers an AFP scheme. For some people, this could have a significant impact on their future entitlement to AFP, says Hopmoen.

One of the conditions for receiving AFP is that you must have worked for an employer covered by an AFP scheme for at least seven of the nine years leading up to your 62nd birthday. AFP is a lifelong pension payment for public sector employees born in 1963 or later. If you lose your entitlement to AFP, you also lose a significant part of your total lifelong pension.

Hopmoen emphasises that periods of employment with different public sector employers are combined when assessing AFP entitlement.

– Employment in a private company with an AFP scheme may also count towards your entitlement to public sector AFP. However, the reverse does not apply: employment in the public sector does not count towards entitlement to AFP in the private sector. This is important to be aware of, he says.

Read more about the conditions for receiving lifelong AFP.

Most people who apply for a pension from SPK are entitled to lifelong AFP

All employees who are members of a pension scheme with SPK can apply for lifelong AFP from the age of 62. You do not need to check all the AFP conditions in detail before applying. We will assess whether you meet the conditions when we receive your application.

– Most employees who apply for a pension from us meet the conditions for receiving AFP. However, some conditions must be met at specific points during your working life. It is therefore a good idea to familiarise yourself with the rules well before you approach retirement age, Hopmoen explains.

Check what applies to you

– I advise everyone to take AFP and their retirement pension into account when considering a change of job. Remember that both AFP and retirement pensions are paid for life for public sector employees. Use the pension calculator to see how different choices could affect your pension. The earlier you start exploring your options, the more choices you will have, says Hopmoen.

About lifelong AFP in the public sector

• Lifelong AFP is an additional pension payment for public sector employees born in 1963 or later. You can continue working as much as you like while receiving AFP.
• Previously, public sector employees had to reduce their working hours or stop working to receive AFP between the ages of 62 and 67. This is no longer the case.
• Unlike AFP in the private sector, public sector lifelong AFP does not require you to withdraw your retirement pension from the National Insurance Scheme (Nav).
• Some of the conditions for lifelong AFP must be met on your 62nd birthday. Other conditions must be met on the date you wish to start receiving AFP.
• Check the conditions for lifelong AFP at spk.no/AFP.