Uncertainty about retirement compensation

The Prime Minister can only promise that the government still wishes to ensure that the bill will not have financial consequences for local authorities.

This is the gist of the Prime Minister’s reply to MP Brandur Sandoy, who enquired about compensation to local authorities in relation to the increased early retirement pension payments.

Mr Sandoy wanted the Prime Minister to say whether he intends to keep his promise from October of full compensation to local authorities for losses incurred since the coalition increased the monthly early retirement pension payments by 1,000 kr.

Prime minister Aksel V. Johannesen replied that it has been common practice in recent years that bills which place a considerable financial burden on local authorities will be neutralised in a follow-up bill.

Delayed

However, this follow-up has been delayed because of the proposed pension reform, and so have other changes which will affect local authorities financially.

“We thought it was best to wait until we knew the total outcome for the local authorities,” said the prime minister.

At a meeting last autumn between the government and the Local Authorities’ Association, local authorities were offered 13.5 million kr. in compensation. This amount would be paid out according to the number of early retirement pensioners. The local authorities rejected the offer, which resulted in no compensation being earmarked for 2018.

“But the government still wishes that local authorities should not suffer financially from bills introduced by the current coalition. Once all statutory measures currently in Parliament have been discussed and passed, we will know the total effect the bill will have on the local authorities. We will then bring this up with the local authorities,” wrote the prime minister in his reply to MP Brandur Sandoy