Only a few tenders and little competition for municipal occupational pensions
Oslo Economics has produced in-depth reports on the municipal pensions market for public employer organisation KS in 2019, as well as for Storebrand in 2020.
– Tenders are a prerequisite for competition in the market, and competition means lower prices and higher quality of service, says Oslo Economics’ Rolf Sverre Asp to the June 2021 issue of IPE Magazine Current edition | IPE.
– The pensions of employees and pensioners will not change as a result of tenders and competition, but the municipality’s costs may change, he says.
– With competition, it gets the opportunity to choose whether the municipality will be the owner – via KLP or its own pension fund – or have a clean customer relationship with Storebrand, he says, explaining that competition from other players gives municipalities currently with KLP the opportunity to release equity.
Nikolai Astrup, Norway’s minister of local government says in the same article that it is a positive development that Storebrand is returning as a contender:
– For several years, KLP has been the sole provider of occupational pensions to Norwegian municipalities and counties.
– Having several providers, is healthy and important for the competition in the market. This provides municipalities and counties with opportunities to assess their alternatives,” Astrup says.
Read the full article here (behind payment wall): Norway: Off to a slow start | Country Report | IPE