European Construction Industry Federation European Federation of Building and Woodworkers

Paritarian Social Funds in the Construction Industry


Joint organization for LO / NHO schemes


Type of fund


C.J. Hambros pl. 2B, NO - 0164 Oslo / PO Box 6662 St. Olavs pl, NO - 0129 Oslo



Ms. Anne Cecilie Andresen (Employee’s Benefits Expert)
Tel : +47 22 98 98 12 -

General Information Employee Group Covered  Eligibility Definition of Pensionable Pay Cost Sharing Vesting and Withdrawal Financing Cost-of-living adjustment Preservation, portability, transferability Information to the Employees  

General Information


LO (The Norwegian Confederation of Trade Unions) and NHO (The Confederation of Norwegian business and industry) established the AFP fund (pension, early retirement and termination scheme) and the collective agreement came into force on 01/01/1989.


Nowadays the AFP scheme is called the 62 early retirement schemes and gives older workers of “heavy occupations” the right to retire before they reached retirement age in the National Insurance Scheme.  The scheme is applicable to all companies bound by the collective agreements of LO-NHO. 


The AFP pension scheme is used by every professional sector.


Board composition

A chairman, 6 directors, 7 deputies and 2 observers


Regulatory framework

LO/NHO collective agreement 01/01/1989

Employee Group Covered

All employees are covered by the scheme


Part-timers and temporary employees are included


Spouse can be included if the worker pays an additional contribution.  The spouse must be over 60 and not considered as self-dependent (i.e.: their income less than the basic amount G of the National Insurance)


Immediate eligibility for the AFP pension scheme from the first day for employees coming from another pension scheme.


Waiting period of 2 years for the company entering the scheme.


Compulsory if the collective agreement mentions the affiliation to the AFP scheme.  Otherwise, it cannot be voluntary.


Exception: This scheme is not applicable to:


  • Employees who agreed by agreement to resign before the age of 67
  • Employees already entitled to early retirement according to insurance-based schemes

Definition of Pensionable Pay

Retirement including early retirement supplement may not exceed 70% of the average of the top 3 of the last know income years prior to the year of retirement.

Cost Sharing

Shared costs required by plan rules.

Vesting and Withdrawal

Employee must be at least 62 years old and should still be employed by the employer.


Vesting after 5 years.


“Joint financing”:


State covers 40% of the pension scheme expenditure from 64 to 67 years.


Employer pays a tax based on the number of workers employed in the company and a deductible of 25% of annual pension (for companies entering the scheme and previously affiliated to other schemes, there is a deductible of 60/100% during the first 2 years).

Cost-of-living adjustment


Preservation, portability, transferability

Rights are transferable within all companies’ part of the collective agreement.

Information to the employees

Website, power point presentations, brochures and through social partners.