Lifelong Contractual Pension (AFP)

• AFP er et livsvarig tillegg til pensjonen og kan tas ut fra 62 år.
• Du må ha AFP-jobb i 7 av de siste 9 årene før 62, og i de siste 3 årene før uttak.
• Stillingen må være hovedarbeidsforholdet og minst 20 %.
• Du kan jobbe så mye du vil uten at AFP reduseres.
• Du kan ikke ha mottatt visse ytelser eller uføretrygd fra Nav etter 62 år.
• Hvis du ikke fyller vilkårene, kan du ha rett til betinget tjenestepensjon.

Key features of lifelong AFP

• You accrue lifelong AFP benefits until the end of the calendar year in which you turn 61.
• Most people can start withdrawing AFP from the month after they turn 62.
• If you postpone your withdrawal, the pension will increase according to life expectancy adjustments and annual pension adjustments.
• You can withdraw AFP without reducing working hours or retiring.
• AFP is a lifelong benefit paid in addition to your retirement pensions from Nav and SPK.
• You are free to combine AFP and work without your lifelong AFP being reduced.

How AFP is accrued

• You accrue AFP at a rate of 4.21 per cent of your income up to 7.1 G (G = the national basic amount).
• All pensionable income under the National Insurance Scheme is included, not just public sector income.
• You accrue AFP for all years with pensionable income from the year you turn 13 until the end of the calendar year in which you turn 61.
• Accrued benefits are accumulated in a fund that forms the basis for calculation of your lifelong AFP.
• Your AFP accrual stops at the age of 70, which means that the monthly amount is calculated as if you were 70, even if you are older when withdrawing it.
• Your AFP assets are adjusted in line with general wage growth on 1 May each year, in addition to accrual by income. After you start withdrawing AFP, your pension is adjusted by an average of general wage and price growth in Norway.

Conditions to be eligible for lifelong AFP

To be eligible for lifelong AFP, you must meet certain conditions. Some conditions apply at the time you turn 62, regardless of when you are withdrawing it. Other conditions apply at the time of withdrawal.

Conditions applying at age 62

• You must have worked for an employer with a public or private contractual lifelong AFP agreement for 7 of the last 9 years before you turn 62.
• The employment must be your main job, and you must have at least a 20 percent position.
• You are not allowed to have had other earnings exceeding the income from your main employment.

If you were born between 1963 and 1966, not meeting the employment requirement above, you may still be eligible for AFP if you:

• have been a member of the Norwegian Public Service Pension Fund or another public service pension scheme for a total of at least 10 years, and
• have worked for an employer with a public AFP scheme for
  • (born in 1963) 3 of the last 5 years
  • (born in 1964) 4 of the last 6 years
  • (born in 1965) 5 of the last 7 years
  • (born in 1966) 6 of the last 8 years

You are not eligible for lifelong AFP if receiving disability benefits from Nav after you turn 62.

Conditions applying at the time of AFP withdrawal

• You must have worked for an employer with a public AFP scheme for the three last years before withdrawing AFP.
• You must have been continuously employed for the entire three-year period, been an actual and active employee with at least a 20 percent position during these three years.
• In addition, you must have had income above the national insurance basic amount (G) at the time of AFP withdrawal, as well as the previous year.
• You are not eligible for AFP if you are receiving or have received private AFP, AFP as early retirement, conditional occupational pension or special early retirement pension.

Earliest application: If you are born in 1963 or later, you can apply for lifelong AFP at earliest four months before turning 62.

Conditional occupational pension

If you do not meet the conditions for lifelong AFP, you may instead be entitled to a conditional occupational pension. This does not change the AFP rules above; it is an alternative for members who do not qualify for AFP.

Read more about conditional occupational pension

How AFP and retirement pension work together

AFP is paid in addition to your retirement pensions from Nav and SPK. The total amount depends on your income, pensionable service, and the age at which you choose to start withdrawal.