The new Occupational Pension Act entered
into force 1 January this year. The Act allows private
employers to establish a third kind of pension scheme, being a
hybrid between defined benefit and defined contribution schemes. As
such, the new product is already being referred to as the
new "hybrid-scheme".
Furthermore, there have been changes in the regulations
following the Occupational Pension Act. It is now possible for
employers to pay a substantial higher amount to the pension plan in
defined contribution schemes than earlier permitted. As
earlier, employers' pension payments will be tax deductible for
the employer and will not be subject for taxation for the employee
until payment date. The changes imply, in principle, that employers
may provide substantially higher pension contributions to pension
schemes than earlier. Due to the high cost and wage level in Norway
it remains to be seen in the longer term whether or not the changes
will have any significant
