Spousal Life Conference : Annexe 4
The Norwegian Spousal Pension Scheme
We are sorry no representative of the Norwegian Embassy in Ottawa was able to speak on this absolutely current topic, but we are pleased to have information collected by our embassy in Oslo. In your folder you will find a short form of the Norwegian Pension scheme for their foreign service spouses.
It is anticipated it will be presented to the Storting, the Norwegian parliament, next month. The two principles under which it is presented are that spouses are in general unable to work on posting, and that it is more difficult for female employees to accept postings because male spouses are less able to leave their jobs. The full pension is predicated on thirty years overseas experience. It will be reduced by the difference between that figure and the actual time overseas. The pension can't come into effect until 10 years overseas have been accumulated. The pension will be paid out starting at 67 years of age, which is the age of retirement in Norway.
The government will pay the full premium for the time foreign service spouses spend overseas because it is acknowledged that spouses have limited employment possibilities on posting. In an interview this week with the head of the relevant section of the Norwegian foreign ministry, Gilles Gingras of our Embassy in Oslo was told that the possibility of spousal employment at a prospective posting was a critical factor in even considering that posting.
Spousal employment is not going away as an issue. This pension scheme is not perfect and many are less than delighted with provisions such as the time of overseas service needed before it comes into play. However it is a positive response to the reality that rotational spouses are affected financially by overseas postings.
The Pension Scheme
The pension scheme is to be financed over the budget of the Ministry of Foreign Affairs and will be administered by the Norwegian Public Service Pension fund. The administrative consequences of the scheme will be insignificant.
The pension will be paid in arrears every month. The amount is rounded off to the nearest whole drone.
Re section 5
Those who are entitled to a pension pursuant to this Act are accompanying persons who fulfil the conditions set out in section 3 and who have not attained the age of 70 on the date when the scheme enters into force.
In calculating the pension, relevant time accumulated prior to the entry into force of the scheme is also counted.
In order to be eligible under the scheme when it enters into force, the spouse must have spent at least 15 years accompanying an employee posted abroad. This limit is reduced by one year per year after the scheme enters into force until the general qualifying limit of 10 years is attained.
The Ministry of Labour and Government Administration
recommends
that Your Majesty approve and sign a proposal for a proposition to the Storting concerning an Act relating to a pension scheme for spouses accompanying foreign service employees abroad.
We, HARALD, King of Norway,
hereby affirm:
that the Storting is requested to take a decision on an Act relating to a pension scheme for spouses accompanying foreign service employees posted abroad in accordance with the submitted draft.
The recommendation of the Ministry of Labour and Government Administration is attached.
Draft
of an Act relating to a pension scheme for spouses accompanying foreign service employees posted abroad.
Section 1. Scope
This act applies to spouses accompanying foreign service employees while posted abroad. Those who are covered by the scheme are spouses accompanying government employees paid according to the Government Pay Scale who are employed, salaried and posted by the Ministry of Foreign Affairs or the Norwegian Agency for Development Cooperation to ser at Norwegian diplomatic or consular missions abroad.
Section 2. Duration
The pension is paid from the 1st of the month in which the applicant fulfils the conditions for such a pension. The pension ceases at the end of the month in which the recipient dies.
Section 3. Conditions and basis for calculation
A spouse who has accompanied a foreign service employee during his/her service at a Norwegian foreign service mission for at least 10 years is entitled to a pension as set out in this Act subject to the limitations laid down in section 5.
If the accompanying person/spouse* has occupied an independent position at the foreign service mission as his/her main employment with an income in a particular year that exceeds the average national insurance basic amount for that year, this period shall not be counted as part of the earnings/accumulation period for the pension.
If during a term of service abroad the spouse resides temporarily in Norway or another country for a period exceeding three consecutive months and if this stay is not related to official duties or to the illness of a family member or other weighty welfare reasons, this period shall not be counted.
The size of the pension is fixed at 15 per cent of the national insurance basic amount multiplied by five. A spouse who has accompanied the employee abroad as set out in the first paragraph for a total of at least 30 years is entitled to a full pension. If the period totals less than 30 years, the pension will be reduced accordingly.
The right to a pension applies when the person concerned attains the age of 67.
A pension pursuant to this Act shall not be coordinated with the national insurance pension. A membership contribution shall not be charged.
Section 4. Administration
The pension scheme shall be administered by the Norwegian Public Service Pension Fund.
The pension shall be paid in arrears every month. The amount shall be rounded off to the nearest krone.
Section 5. Transitional provisions and entry into force
This Act enters into force immediately.
Accompanying spouses/persons* who fulfil the conditions set out in section 3 and who have not attained the age of 70 years on the date of entry into force of the scheme are entitled to a pension pursuant to this Act.
When calculating the pension, time spent abroad by the accompanying spouse prior to the entry into force of the Act is counted. However, there is a time limit of 15 years upon the entry into force of the scheme, so that in order to be entitled to a pension the spouse must have spent at least 15 years accompanying an employee abroad. This limited is reduced by one year every year from the entry into force of the scheme until the qualifying limit of 10 years is reached. cf. section 3.