OTP - Mandatory occupational pension scheme - when you’re employed
OTP (Mandatory occupational pension scheme) is a pension scheme paid by your employer. Your employer is required to save an amount corresponding to at least 2 percent of your salary. Most employers must establish a pension scheme for their employees.
You can check whether you're in the pension scheme with Norsk Pensjon (Norwegian Pension).
You'r entitled to OTP when:
- You're a member of the National Insurance Scheme
- you’ve reached the age of 13
- your employer is required to establish a mandatory occupational pension scheme (OTP)
- your income exceeds NOK 1,000, or NOK 10,000 if your salary is from a tax-exempt organisation.
Your employer must register you in the pension scheme from your first day of employment.
Your employer pays an amount corresponding to at least 2 percent of your salary to the pension scheme. Your employer may choose a higher percentage, or rate, within the scope of the legislation concerning pension.
The pension scheme provider calculates the premium based on the salary your employer has reported.
For more information about the contents of the pension scheme, contact your employer or the pension scheme provider your employer has an agreement with.
Requirements to employers
Your employer is required to have a pension scheme when at least one of the following criteria are met:
- at least two persons in the enterprise both have working hours and a salary corresponding to 75 percent or more of a full-time position.
- at least one person without ownership interest in the enterprise has working hours and a salary corresponding to 75 percent or more of a full-time position.
- persons in the enterprise that each has working hours and a salary corresponding to 20 percent or more of a full-time position, and that combined perform work corresponding to at least two full-time positions.
If your employer has not established a pension scheme
If you believe your employer is required to establish a pension scheme, but have not done so, you may send a tip to the Tax Administration about this. You may choose to be anonymous.
The Tax Administration may:
- decide if your employer is required to have a pension scheme
- order your employer to establish a pension scheme for the employees. However, the order does not have retroactive effect. If your employer has not set aside funds for pension for you, this is a civil law matter between you and your employer.This is something you have to follow up with your employer.
Employers that do not comply with their duties (Act relating to the mandatory occupational pension scheme) to create or pay contributions for mandatory occupational pension for their employees, may be fined or sent to prison for up to 2 years.
Your employer can choose to establish a defined contribution pension scheme, an enterprise pension scheme, or an occupational pension scheme.
Defined contribution pension scheme is the most common pension scheme. Your employer must give you information about which pension scheme you have been registered in.
Contact your employer or the pension scheme provider (can be a bank, life insurance company, pension fund, defined contribution pension enterprises or management companies for securities funds) your employer has an agreement with if you want more information.
If you work in a private enterprise and have a defined contribution pension scheme, you have your own pension account.
In your pension account, your pension from your current and previous employments are joined in one account. This provides a good overview of your pensions savings made by your employers.
Your pension account is established with the provider your employer has chosen. You may choose to move your pension account to another provider.
You must be considered an employee to be included in the pension scheme. Self-employed persons and freelancers are generally not considered employees.
Foreign company or NUF
If your employer is a foreign company or a NUF (Norwegian registered foreign company), they may have been granted an exemption from establishing a pension scheme in Norway.
This applies if your employer has a foreign pension scheme that is equal to or better than the requirements to a Norwegian pension scheme.