Supplementary Benefit
Supplerende stønad
Coverage
- Individuals who are legally resident in Norway and who have not been resident in Norway long enough to qualify for the full ‘guarantee pension’ in the national insurance system.
Financing
- The scheme is financed from taxes/the general budget.
Administration
- ‘The Norwegian National Insurance Administration’ (NAV).
Qualifying Conditions
- Retirement age for the ‘guarantee pension’ (67 years of age).
- A pension below the statutory minimum pension level in the national insurance system (folketrygden) resulting from a period of residence of fewer than 40 years.
- Legally resident in Norway.
- Strictly means-tested: an individual and their spouse can only have assets below 0.5 G; the applicant’s benefit level is reduced by any income of the spouse that exceeds the minimum pension level.1
Benefits
Benefits
- Benefits top up the difference between an individual’s ‘guarantee pension’ and the standard rate of the full ‘guarantee pension’ (minimum pension level).
- Two different levels: ordinary and high (depending on household income situation).
- Benefits are granted for a period of 12 months at a time.
Taxation and social security contributions on pension payments
- Recipients pay reduced social security contributions (5.1%, compared to 8.2% for employees).
- All pension benefits (including social assistance in old age) are subject to taxation; a tax reduction of up to NOK 30,000 is granted to pensioners.
- Due to the tax deduction, recipients of the ‘supplementary benefit’ will typically not pay any tax.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Individuals who are legally resident in Norway and who have not been resident in Norway long enough to qualify for the full ‘guarantee pension’ in the national insurance system.
- The scheme is financed from taxes/the general budget.
- ‘The Norwegian National Insurance Administration’ (NAV).
- Retirement age for the ‘guarantee pension’ (67 years of age).
- A pension below the statutory minimum pension level in the national insurance system (folketrygden) resulting from a period of residence of fewer than 40 years.
- Legally resident in Norway.
- Strictly means-tested: an individual and their spouse can only have assets below 0.5 G; the applicant’s benefit level is reduced by any income of the spouse that exceeds the minimum pension level.1
Benefits
- Benefits top up the difference between an individual’s ‘guarantee pension’ and the standard rate of the full ‘guarantee pension’ (minimum pension level).
- Two different levels: ordinary and high (depending on household income situation).
- Benefits are granted for a period of 12 months at a time.
Taxation and social security contributions on pension payments
- Recipients pay reduced social security contributions (5.1%, compared to 8.2% for employees).
- All pension benefits (including social assistance in old age) are subject to taxation; a tax reduction of up to NOK 30,000 is granted to pensioners.
- Due to the tax deduction, recipients of the ‘supplementary benefit’ will typically not pay any tax.
1 The wage-indexed basic amount ‘G’ (grunnbeløpet) plays a central role in calculating contributions and benefits under the pension system. 1 G amounts to around 1/6 of average annual full-time labour income (NOK 99,858 as of 1 May 2019).
Legal Basis: Act on Additional Support for Individuals with Short Residency Periods in Norway (Lov om supplerende stønad til personer med kort botid i Norge).