Pensions

The Government’s pension system covers government employees and employees of a handful of specific groups, such as some of the heads, teachers and other staff of primary schools, upper secondary schools and substitute schools.

The statutory pension provisions consist of an employment pension component and a national pension component. A pension in one’s own right is granted in the form of an old-age pension, disability pension, unemployment pension or part-time pension. Moreover, beneficiaries are entitled to rehabilitation benefits. Survivors’ pensions are allocated as pensions to surviving spouses and dependents under 18 years old.

The pension provisions for those who have entered into government employment after 1992 are at the same level as for employees in the private sector while those who started in government service before 1992 may have a slightly higher pension level. In general, government pension provisions are subject to the same changes as those in the private sector. The pension provisions for government employees are enacted in the State Employees’ Pensions Act. State pensions are paid from the government Budget.

Group life insurance

A lump-sum payment that is equivalent to a group life insurance claim is granted to the spouse and dependents of deceased government employees. The magnitude and terms for the lump-sum payment are negotiated in collective agreements. The terms and conditions for the payment have as a rule been identical to those in group life insurance in the private sector. Further information available at the Treasury.

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