The Norwegian Pension Fund Association (Pensjonskasseforeningen) has criticised the Pension Office (Pensjonskontoret) over its latest annual Pensions Guide. The association said the document mostly defends the largest municipal pensions provider rather than having a balanced presentation of the alternatives.
The Pension Office supervises municipal pensions provision in Norway, and produces a guide (pensjonsveileder) each year for municipalities on putting their staff pensions provision out to tender.
In a newspaper column written by Christer Drevsjø, chief executive officer of the Norwegian Pension Fund Association, he said: “By and large, the guide can be read as a defence for the dominant player, KLP.”
He acknowledged in his article in specialist publication Kommunal Rapport that the primary goal of the pension guide was to give direction to municipalities that would put pensions out to tender – and that pension funds were therefore not a main goal, because that particular solution was in-house work.
“At the same time, it is a fact that the pension supervisor has made a not insignificant mention of the institution of the pension fund, with some reflections made about that alternative,” he wrote, adding that this created a need for some comments.
“As a representative of one of KLP’s obvious alternatives, the pension funds unfortunately find that, this year as well, the supervisor does not have the desired degree of balance in the presentation of the opportunities, advantages and disadvantages of the various solutions and the market,” he said.
For it to be balanced, Drevsjø said, the Pension Office should ensure that relevant matters were part of the overall presentation.
“An insured solution from KLP is not ideal for all municipalities, even though the pension supervisor seems to present the alternatives as risky,” he said.
IPE has contacted the Pension Office for comment on the matter.