The price of Integration And Norway’s Fiscal Future

Workers working in the general public sector are slated to obtain NoK four,300 billion in future pensions. This is greater than the present worth of the Oil Fund.

“Public staff have been given your complete Oil Fund,writes Finansavisen [Norwegian financial newspaper], which has been finding out the longer term pensions of public employeesas pledged by the government.

The equation applies to 840,000 public staff who might be paid sixty six% of their present wage when they retire. No one in the federal government has dared to do anything about these public pensions, despite the fact that workers in the personal sector are experiencing frequent assaults on their future pensions because personal corporations simply can’t afford to pay for them.

“There are strong indications that Norway is sitting on top of a public pension bomb,writes Finansavisen.

For the reason that red-inexperienced coalition authorities took over in 2005, a further a hundred,000 public sector jobs have been created, and consequently, the state (taxpayers) has incurred future financial obligations for much more public retirees.

But is it really truthful that the state ensures NoK 4,300 billion in pension liabilities for public workers at the identical time that non-public workers are having their pensions shaved and face tax will increase to cowl the rising costs of public pensions?

In 1980 there have been 460,000 staff in the public sector. That quantity rose to 580,000 in 1990. In 2000 the number was 711,000 and now 840,000 employees are working in the general public sector in Norway.

On top of this, an extra 10,000 new permanent public jobs are created each year. The extent of the Oil Fund is at the moment at NoK 3,865 billion. Even when future public retirees were to be given the complete fund, there would still be a shortfall of NoK 500 billion in pension obligations.