Layoffs and compulsory occupational pensions
You can continue saving for an occupational pension while you are laid-off. Whether this should be done, and if so who should pay, will depend on the regulations for the pension scheme/insurance agreement that has been established and the agreements that have been entered into between the employer and employee (collective agreements and employment contracts).
Compulsory occupational pensions and layoffs
Most employers are required to set up an occupational pension scheme (OTP) for their employees.
Defined contribution pensions and layoffs
Defined contribution pensions are the most common type of pension scheme in the private sector. According to the Defined Contribution Pension Act, the general rule is that employees who are laid off are withdrawn from the pension scheme, but it can be stipulated in the regulations/insurance agreement that employees who are laid off should remain a member of the scheme. If the regulations/insurance agreement do not contain any provisions concerning this, the employer can amend the agreement with the pension company such that employees who have been laid off can remain a member of the pension scheme.
After withdrawing from the scheme, an employee who has worked for the company for at least one year will be sent a pension capital certificate, a pension certificate or a paid-up policy document by the pension company. This certificate entitles the employee to pension payments from retirement age.
Ytelsespensjon/hybridpensjon og permitteringDefined benefit pension/hybrid pensions and layoffs
For defined benefit pensions and hybrid pensions, the same rules apply concerning pension schemes during layoffs as for defined contribution pensions.
Employees who are withdrawn from their company's pension scheme must be given the opportunity to continue contributing to a pension scheme themselves. Information on this option must be given in writing by the pension company. The employee must exercise this right within six months of the end of their membership.