DC in Norway
Larger Norwegian companies are expected to shift away from defined benefit(DB) pension schemes towards defined contribution (DC), says life insurer Storebrand.
It says there was a “definite change” in the market for DC schemes in 2003, after initial interest was limited when DC was granted the same tax advantages as DB in 2001.
“However in 2003 a number of larger companies elected to convert their existing DB pension schemes to DC schemes,” the group says in its 2003 annual report. At the start of 2004, almost 20,000 employees were in DC schemes run by Storebrand.
The insurer says it expects DC to account for a “significant part” of future growth in the pension market. The proportion of private sector employees in group pension schemes organised by their firms to rise from its current 43%.
The company’s asset management arm, Storebrand Investments, made a pre-tax profit of NKr22m in 2003, compared to a loss of NKr13min 2002. Total assets under management was up by NKr19bn at NKr159bn.