Employees Pension Plan — OTP

In Norway, the pension system is divided into three parts: Retirement pension from the National Insurance Scheme (Folketrygden), Occupational Pension (OTP) or contractual early Retirement Pension (AFP) from employers, and private pension savings. It is important that you know about all the levels in the pension system to give you an idea of how much your pension will be.

Obligatorisk Tjenestepensjon (OTP) is a Mandatory Company Occupational Pension Scheme for your employees. As an employer, you have to set aside a percentage of their salaries for their pension. Most employers in the private sector in Norway must establish Registered Pension Plans for their employees (RPP).

There are currently three types of Supplementary Pension, and they are also called Employees Pension Plan (EPP) * Defined Contribution Pension (Innskuddspensjon). * Hybrid Pension(Hybridpensjon). * Defined Benefit Pension (Ytelsespensjon).

Requirements to register in Norway Employees Pension Plan (OTP ITP)? The company must establish a pension scheme for your employees when you meet at least one of the following criteria: * The enterprise has at least two persons with working hours and a salary equivalent to 75 percent or more of a full-time position. * Example: The enterprise has at least one employee, with no ownership interest in the enterprise, and with working hours and salary equivalent to an FTE of 75 percent, or * Example: The enterprise employs persons with working hours and salary corresponding to 20 percent or more of a full-time equivalent (FTE). In sum, they perform work corresponding to at least two full-time positions.

* Private limited liability company (AS) * Public limited liability company (ASA) * General partnership (ANS) * Sole proprietorship (ENK) * Other company forms that have employees Public or municipal enterprises are not required to establish a pension scheme according to the OTP Act. If you’re self-employed without employees (owner of a sole proprietorship or partner in a general partnership) or freelancer, it’s optional to establish a pension scheme.

From 1 July 2021, non-compliance with the OTP | ITP Employee Pension Scheme obligation for its employees costs the company 250 NOK per day per employee.

Do you want to provide your employees with a better Retirement Pension Plan? For example, you can increase your pension contributions or offer insurances such as disability benefits, health insurance and travel insurance. Fill in the basic information on the form we will contact you. If you have additional questions, please send us an e-mail: post@localmarket.no or call us + (47) 23 89 88 63