Aon Norway Pension Survey 2017 - Risk - Retirement - … Norway AS 2 Aon Norway Pension Survey 2017...

Aon Norway AS

1

Multinational report

Aon Norway PensionSurvey 2017

Aon Norway AS

2

Aon Norway Pension Survey 2017 – content

1 Executive summary

2 Respondents

3 Defined contribution

4 Personal insurances

5 Summary and key findings

Aon Norway AS

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Introduction

Welcome to our pension survey. This is the third year we are conducting the survey, and this year we have included questions on other insured benefits in order to map employers’ compensation and benefits to a greater extent.

With this survey we have also mapped how Norway’s biggest companies have adapted to the new regulation for defined contribution rates.

Over the last years there has been some major changes within pension schemes in Norway that we have followed closely and become experts to advise on. How the biggest companies in Norway have responded and acted on these are also covered in our report.

The companies featured in this survey have been invited to get the opportunity to represent the industry leaders within industry.

Insured benefits

AFP

Contribution rates

Risk covers

Executive pension

Contribution from 0G?

+ more

Aon Norway AS

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Respondents

This year’s edition of Aon Norway’s Pension Survey totaled 275 responses. These companies employ 262 644 people in Norway in total.

In this report we’ve included industries where we have 10 or more respondents and/or where we experience that the respondents are sufficient to say something about the industry leaders. This means that media (8 respondents), people transportation (5 respondents) and telecom (2 respondents) are not included.

955Average

number ofemployees

275Number of

participants

258Number of

companies with a DC scheme for

new employees

26 %Number of

companies withoffices in Oslo,

Bergen and Trondheim

110Number of

companies onNorwegian

Fortune 500

262 644Number of Norwegian employees comprised

by this survey

90Number of

companies in thissurvey defined as

multinationals

Aon Norway AS

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Respondents

Aon Norway AS

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Respondents – numbers per industry

Law firms; 14; 5 %

Construction; 18; 7 %

Energy; 19; 7 %

Finance; 16; 6 %

Wholesale; 17; 6 %

Health; 16; 6 %

Manufacturing and production; 36; 13 %IT; 25; 9 %

Consultants and accounting; 9; 3 %

Media; 8; 3 %

Food industry; 17; 6 %

Oil and gas; 49; 18 %

Consulting engineers; 13; 5 %

People transportation; 5; 2 %

Telecom; 2; 1 %

Transport and logistics; 11; 4 %

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Respondents – number of multinational companies per industry

Law firms; 0; 0 %

Construction; 2; 2 %

Energy; 3; 3 %

Finance; 3; 3 %

Wholesale; 5; 6 %

Health; 12; 13 %

Manufacturing and production; 12; 13 %

IT; 13; 14 %Consultants and accounting; 3; 3 %

Media; 2; 2 %

Food industry; 4; 4 %

Oil and gas; 23; 26 %

Consulting engineers; 2; 2 %

People transportation; 2; 2 %

Telecom; 1; 1 %

Transport and logistics; 3; 3 %

Aon Norway AS

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Respondents

The respondents represents a wide and very representative selection of the biggest companies in Norway within the main industries we have.

The survey contains everything from prestigious law firms with fewer employees and high salaries, to worldwide manufacturing companies with thousands of employees and offices in all of the major cities.

Asia1 %

Europe (not Nordics)

18 %

Norway58 %

North America

13 %

Nordics10 %

Where is the global management located?

0 to 9926 %

100 to 24927 %

250 to 49914 %

500 to 99910 %

1000 +23 %

Company size by number of employees

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Industry Number of companies

Number of companies with

DC

Number of employeesAverage | Median

Number of companies on Norwegian Fortune

500

Law firms 14 14 144 | 149 0

Construction 18 16 1330 | 815 10

Energy 19 18 298 | 100 7

Finance 16 16 2391 | 187 6

Wholesale 17 17 2879 | 270 7

Health 16 14 313 | 120 3

Manufacturing and production 36 34 522 | 235 13

IT 25 25 450 | 229 7

Consultant and accounting 9 8 531 | 131 2

Food industry 17 15 765 | 310 6

Oil and gas 49 45 916 | 250 31

Consulting engineers 13 12 685 | 215 5

Transport and logistics 11 11 1898 | 600 7

Answers from industries with 10 or more respondents and/or where we experience that the answers are sufficient to say something about the industry leaders.

Respondents

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Oslo Bergen Trondheim Stavanger

Law firms 14 85 % 35 % 14 % 21 %

Construction 18 100 % 78 % 66 % 55 %

Energy 19 42 % 21 % 21 % 31 %

Finance 16 81 % 62 % 56 % 43 %

Wholesale 17 88 % 70 % 76 % 70 %

Health 16 94 % 31 % 25 % 19 %

Manufacturing and production 36 47 % 27 % 33 % 25 %

IT 25 92 % 28 % 48 % 36 %

Consultant and accounting 9 88 % 33 % 33 % 33 %

Food industry 17 64 % 64 % 29 % 24 %

Oil and gas 49 40 % 40 % 14 % 61 %

Consulting engineers 13 92 % 46 % 69 % 54 %

Transport and logistics 11 81 % 55 % 64 % 45 %


Respondents – share with employees in the four largest cities

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Defined contribution

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Number of companies with DC for new employees

Average contribution level

Median contribution level

Law firms 14 14 5,3 + 9,4 5 + 8

Construction 18 16 4,5 + 10,1 4,8 + 8

Energy 19 18 6,2 + 18,5 7 + 19,5

Finance 16 16 6,6 + 17,5 7 + 19

Wholesale 17 17 4,5 + 11,1 4 + 8

Health 16 14 5,3 + 12,9 5 + 9,5

Manufacturing and production 36 34 4,2 + 9,0 4 + 8

IT 25 25 4,9 + 8,2 5 + 8

Consultant and accounting 9 8 5 + 12,4 5 + 9

Food industry 17 15 4,3 + 8,7 4 + 8

Oil and gas 49 45 5,4 + 14,4 5 + 12

Consulting engineers 13 12 5,2 + 12,9 5 + 15

Transport and logistics 11 11 4,8 + 11,0 5 + 9


Defined contribution levels

Aon Norway AS

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Industry Share of clients offering contribution from 0G

Share offering AFP Share offering executive pension

Law firms 43 % 0 % 0 %

Construction 22 % 75 % 27 %

Energy 84 % 61 % 10 %

Finance 88 % 69 % 43 %

Wholesale 41 % 53 % 29 %

Health 68 % 44 % 12 %

Manufacturing and production 50 % 66 % 22 %

IT 48 % 12 % 20 %

Consultant and accounting 33 % 10 % 0 %

Food industry 23 % 47 % 35 %

Oil and gas 71 % 40 % 20 %

Consulting engineers 38 % 25 % 8 %

Transport and logistics 64 % 36 % 18 %


Defined contribution

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Does the company offer AFP (contractual early retirement pension)?

Responses in percentage

75

6169

36

5968

12 13

61

43

25

36,546

100

12,5

11

25

53

21 3

64 62

6

2250

3629

12,5

28

6 11 28

29 24 2533 35

25 27,5 25

0102030405060708090

100

Yes No Don't know

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Average contribution level on DC scheme

Industry comparison

5,3 4,66,2 6,6

4,5 5,34,2 4,9 5 4,3

5,4 5,2 5 4,8

9,4 10,1

18,517,5

11,112,9

9 8,2

12,4

8,7

14,412,9

8

11

02468

101214161820

Contribution 0/1 - 7,1 G Contribution 7,1 - 12 G

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Median contribution level on DC scheme

Industry comparison

5 4,87 7

4 5 4 5 5 4 5 5 5 5

8 8

19,5 19

89,5

8 8 9 8

12

15

12

9

0

5

10

15

20

25


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Average contribution level on DC scheme

Distribution of 192 companies by when they had a transfer from DB to DC and what average contribution level they ended up on for the respective year

45

4,45,4 5,4

4,73,6

4,9 4,7 5 4,6 4,15,3 5,4

6,2 5,8

98

8,8

13,7 13,212

6,1

8,8

7,2

10,9

910,1

11

13,1

17,2

15,9

1 1

5

7

11

18

8

12

5

98

14

9

25

2930

0

5

10

15

20

25

30

35

0

2

4

6

8

10

12

14

16

18

20

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Num

ber o

f com

pani

es w

ho h

ad a

tran

sfer

from

DB

to D

C th

is y

ear

Contribution 0/1 - 7,1 G Contribution 7,1 - 12 G Number of companies

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Median contribution level on DC scheme

Distribution of 192 companies by when they had a transfer from DB to DC and what median contribution level they ended up on for the respective year

45

45 5 5

45 5 5

4 4,5 5 5

76

98

9

15

12

9,5

78 8 8

78

10

14

18

15

1 1

5

7

11

18

8

12

5

98

14

9

25

2930

0

5

10

15

20

25

30

35

0

2

4

6

8

10

12

14

16

18

20

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Ant

all s

elsk

aper

som

fore

tok

over

gang

fra

ytel

se ti

l inn

skud

d de

tte å

ret

Contribution 0/1 - 7,1 G Contribution 7,1 - 12 G Number of companies

Aon Norway AS

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Contribution level on DC scheme

Contribution level for 258 respondents offering DC scheme for new hires

0

5

10

15

20

25


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LTD Pension Children’s pension

Spouse pension Cohabitant pension

Law firms 14 86 % 50 % 7 % 7 %

Construction 18 88 % 38 % 25 % 6 %

Energy 19 94 % 72 % 72 % 84 %

Finance 16 100 % 75 % 50 % 37 %

Wholesale 17 88 % 35 % 23 % 29 %

Health 16 100 % 71 % 38 % 14 %

Manufacturing and production 36 91 % 32 % 11 % 9 %

IT 25 84 % 39 % 16 % 12 %

Consultant and accounting 9 100 % 0 % 0 % 0 %

Food industry 17 87 % 13 % 7 % 0 %

Oil and gas 49 91 % 44 % 27 % 11 %

Consulting engineers 13 91 % 25 % 8 % 0 %

Transport and logistics 11 72 % 36 % 18 % 18 %


Risk covers

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Risk covers

Industry comparison

86 % 88 %94 % 100 %

88 %100 %

91 %84 %

100 %

87 %91 % 91 %

72 %

50 %

38 %

72 % 75 %

35 %

71 %

32 %39 %

13 %

25 % 25 %

36 %

7 %25 %

72 %

50 %

23 %38 %

11 % 16 % 7 % 8 % 8 % 18 %7 % 6 %

84 %

37 %29 %

14 %9 % 12 %

18 %

0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %

100 %

LTD Pension Children's Pension Spouse Pension Cohabitant Pension

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Pension contribution from 0 G ?

43

25

89 87,5

41

78

5348

37,526,5

78

42

6458

57

75

11 12,5

59

22

47 5262,5

73,5

22

58

3642

0102030405060708090

100

Yes No

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Does the company offer executive pension schemes (above 12G)?

28

11

44

30

82

22 20

35

20

85

18 22

100

72

79

5070

12

72 80

100

65

75

7,5

82 75

10 6 6 6 5 7,5 3

0102030405060708090

100

Yes No Don't know

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Transfers from Defined Benefit to Defined Contribution Scheme

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Industry Number of companies who’s had a DB scheme earlier

Share who gave compensation (fully or

partly)

Share with voluntary transfer

Share with closed DB scheme

Share with life long DB pension

Share who still has employees in a DB

scheme

Law firms 11 64 % 9 % 9 % 90 % 45 %

Construction 10 55 % 22 % 66 % 66 % 78 %

Energy 17 65 % 29 % 59 % 88 % 59 %

Finance 14 78 % 21 % 28 % 100 % 36 %

Wholesale 13 55 % 7 % 61 % 61 % 50 %

Health 13 64 % 27 % 18 % 80 % 30 %

Manufacturing and production 33 68 % 3 % 58 % 77 % 40 %

IT 20 55 % 10 % 30 % 70 % 15 %

Consultant and accounting 8 43 % 14 % 14 % 86 % 43 %

Food industry 12 70 % 0 % 0 % 80 % 18 %

Oil and gas 41 71 % 13 % 34 % 81 % 40 %

Consulting engineers 10 60 % 20 % 60 % 40 % 30 %

Transport and logistics 11 82 % 18 % 54 % 81 % 54 %


Transfers from defined benefit to defined contribution scheme

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Transfers from defined benefit to defined contribution scheme

Companies without a voluntarily transition made a forced transfer for all employees

Companies without a closed DB scheme has made a complete termination of the scheme

Companies without lifelong DB pension are offering/offered limited-period pension (77 or 82 years)

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Insured benefits

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Industry Life Accident Health Travel (leisure)

Travel (business)

Long-Term Disability

Law firms 93 % 86 % 86 % 78 % 93 % 93 %

Construction 100 % 94 % 39 % 39 % 89 % 89 %

Energy 100 % 89 % 63 % 73 % 89 % 100 %

Finance 100 % 94 % 100 % 69 % 94 % 94 %

Wholesale 100 % 88 % 47 % 23 % 76 % 82 %

Health 87 % 75 % 81 % 69 % 81 % 94 %

Manufacturing and production 88 % 83 % 36 % 25 % 75 % 64 %

IT 92 % 80 % 56 % 72 % 84 % 76 %

Consultant and accounting 100 % 88 % 77 % 33 % 100 % 77 %

Food industry 94 % 94 % 59 % 23 % 76 % 59 %

Oil and gas 100 % 96 % 71 % 75 % 92 % 90 %

Consulting engineers 92 % 77 % 69 % 54 % 92 % 92 %

Transport and logistics 91 % 82 % 27 % 18 % 72 % 72 %


Insured benefits

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Insured benefits

Industry comparison

93 %100 % 100 % 100 % 100 %

87 % 88 %92 %

100 % 94 % 100 %92 % 91 %

86 %94 % 89 % 94 % 88 %

75 %83 % 80 %

88 % 94 % 96 %

77 % 82 %

86 %

39 %

63 %

100 %

47 %

81 %

36 %

56 %

77 %

59 %

71 % 69 %

27 %

0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %

100 %

Life Accident Health

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Insured benefits

Industry comparison

78 %

39 %

73 %69 %

23 %

69 %

25 %

72 %

33 %

23 %

75 %

54 %

18 %

93 % 89 % 89 % 94 %

76 % 81 % 75 %84 %

100 %

76 %92 % 92 %

72 %

93 %89 %

100 % 94 %

82 %

94 %

64 %

76 % 77 %

59 %

90 % 92 %

72 %

0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %

100 %

Travel (leisure) Travel (business) Long-Term Disability

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Insured amounts Life

4%

26%

22%20%

8%

11%

2%

7%

Less than 10 G 10 to 19 G 20 to 29 G 30 to 39 G 40 G or more Coveragedepending on

salary

Doesn't have lifeinsurance

Don't know

Level of life insurance for all respondents

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Industry Offer same benefits to all employees

Possible to voluntarily increase life cover

Share of companies with retirement age above 70

Law firms 57 % 7 % 0 %

Construction 78 % 11 % 15 %

Energy 89 % 5 % 0 %

Finance 50 % 13 % 0 %

Wholesale 41 % 0 % 0 %

Health 88 % 6 % 17 %

Manufacturing and production 53 % 3 % 14 %

IT 76 % 8 % 6 %

Consultant and accounting 67 % 0 % 0 %

Food industry 59 % 0 % 7 %

Oil and gas 74 % 2 % 2 %

Consulting engineers 85 % 0 % 25 %

Transport and logistics 64 % 0 % 11 %


Insured benefits

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Summary

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Summary

Insured benefitsFinance, energy, oil/gas and law firms are the industries with the most generous insured benefit offerings.

Only 2 % of the respondents are not offering any type of life cover.

An insured sum as a multiple of the basic amount (G) is by far the most common design for group life insurances. 11 % offers life cover as a multiple of salary.

12 of the respondents are offering the possibilities for employees to increase the insured sums on an individual.

503.000Number of

Norwegians with private

health insurance per

Q4 2016

92%Share of

respondents with retirement age at

70

68 %Share of

respondents where all

employees have same insurance

cover

Accident (out of work)

The second most offered

insurance cover

8 %Number of

companies that offers a life

insurance with coverage of more

than 40 G

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Summary

Contribution rates and cap an pension earning salary (0 – 1 G)The findings in this survey is not automatically representative for all Norwegian companies as a whole but it gives valuable input on the level of DC schemes and insured benefits for the largest Norwegian and multinational companies present in Norway.

42 % of employees with a DC scheme are offered a the mandatory requirement (2 % contribution). Most respondents in this survey are offering much better pension benefits than the minimum standard.

Finance, energy and oil/gas industry are the sectors with most generous pension contributions, including pension offerings without cap of the first basic amount. Many of these companies have moved to DC from DB schemes after 2014, when higher contribution rates were introduced. These industries are most likely to not have cap an the pension earning salary (0 – 1 G)

42 %of Norwegian

employees are offered the

minimum rates

7 + 25.1Maximum

contribution rates after 01 January 2017

92 576G = basic

amount per 1 May 2016

159 869Maximum

possible contribution on a

DC scheme in NOK

5 to 9 %Return on assets 2016 in balanced DC investment portfolios (50 %

equites)

25Companies in this

survey offer maximum

contribution rate

37Companies made only statutory

changes per 01 January 2017

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Contact

Steffen Aabel – Benefit report [email protected]+47 482 56 003

Øystein Mathiassen – Senior [email protected]+47 957 20 944

Aon Norway Pension Survey 2017 - Risk - Retirement - … Norway AS 2 Aon Norway Pension Survey 2017...

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