– Whoever can understand it, says Turid Søfteland and laughs dejectedly. She has worked at Nav since 2006. After a back operation destroyed the nerves to a foot, and she later broke her back, she received 50 percent disability benefits in 2013. Since then, she has been back to work in a 50-80 percent position at Nav Sarpsborg. Before Christmas 2021, she got a nice salary increase. – I was lucky enough to get three extra pay steps. I’ve never had that before. The employer appreciates me and the work I do. But something went wrong when she received a repayment claim at the end of 2022. – I thought: What is this? So I sat down and calculated it, and got a little backwards. The year before, she had received NOK 11,160 per week. Now Nav demanded NOK 11,500 back from her disability insurance, and the State pension fund demanded just over NOK 6,500. Absurd All disability benefits have a limit to what they can earn without, before it leads to deductions from the benefits. This year, the income limit is around NOK 45,000. Social security is reduced by a high proportion of everything you earn above this. The cut can be up to 66 per cent, depending on the degree of disability and the income you had before you became disabled. Disability pensions received from public pension funds are also reduced accordingly. – Everyone gets a small pay week every year, whether they work full-time or part-time. As a disability pensioner, I am used to having to pay back. – But this time I was pissed off, quite simply, says Søfteland. A back problem has damaged Turid Søfteland’s nerves in one foot and made her 50 percent disabled. Photo: Camilla Næss / news She is therefore in the absurd situation that Nav is her employer who both gave her a wage order and then had to reduce her disability benefits accordingly. She does not blame her employer. – It is the politicians, not Nav, who have determined the legislation. The law does not make provision for disability benefits to receive more in salary. Say no to pay week news has previously talked about Mats Bendiksen who believes that it pays too little for disability insurance to work part-time. He, too, has seen the paradox that salary supplements do not pay off. – I was offered a pay week this autumn, but said no. If I had accepted, I would have received a repayment claim for the entire amount. That is why he chose to wait with the salary increase until January 2023. – But I will be left with very little of it. It seems terribly unfair. I also see very little holiday money every year. Nav: “These are the rules” When asked about those on disability benefits who receive a pay increase, Nav replies that the regulations have their origins in law and regulations, i.e. are decided politically: All pay increases result in reduced social security benefits when the salary is above the income limit. The repayment requirement may be higher than the actual salary increase, because the subsequent settlement is calculated based on how much you stated in expected income. The reduction rules also apply to severance packages and all other pensionable income. Nav explains that repayment claims from the State Pension Fund may be added as follows: “There is no coordination with public pension funds, as is the case with old-age pensions. The individual public pension schemes may have their own cut-off rules for benefits from Nav. Wage season can result in cuts to disability benefits This is how Nav responds: These are regulations that have their origins in law and regulations. It is natural that questions about legislation are asked of the Ministry of Employment and Inclusion, but we would like to answer you with the facts: Are the regulations such that a pay week (either as a result of a normal annual salary adjustment, individual pay orders, or an increase in pay in the event of a job change) will/ can lead to a curtailment or demand for repayment of social security? It is the total income that determines whether the disability benefit is adjusted down. If a person with disability benefit exceeds their income limit, the disability benefit must be reduced. (This is described in the National Insurance Act § 12-14. How the income limit is to be determined is also described in the National Insurance Act § 12-14). If you inform NAV of a change in income during the calendar year, the reduction must be spread over the remaining part of the year, and you will not receive a claim for repayment in the subsequent settlement. Can repayment demands from Nav then be higher than the actual salary increase, possibly how? This can happen, because the subsequent settlement is calculated based on how much you stated in expected income. If you inform NAV of a change in income during the calendar year, the reduction of disability benefit must be spread over the remaining part of the year, and you will not receive a claim for repayment in the subsequent settlement. In addition, could there be additional repayment requirements from the public pension scheme, possibly why, and possibly how will this be coordinated? There is no coordination with public pension funds, as is the case with old-age pensions. The individual public pension schemes may have their own reduction rules for benefits from NAV. Questions about this reduction must be addressed to the occupational pension scheme in question. Does the same apply as for a pay week, for example if someone on disability benefits receives a severance package? The rules for truncation apply to all pensionable income. What is needed to raise the income limit? The income limit cannot be raised, but it is adjusted every year according to the basic amount. How the income limit is to be calculated is described in § 12-14 of the National Insurance Act. There is an exception for people with graduated disability benefits, as they can request a change in income before the date of disability. This applies to employees who have received an increase in income that exceeds the adjustment of the national insurance basic amount (G), and where the increase in income is not due to increased work effort. A bad back means that Søfteland works half-time. A pleasant wage increase in 2021 led to an even bigger social security cut the following year. Photo: Camilla Næss / news The Minister of Labour: – Will look at what Søfteland thinks is unreasonable that the salary increase is still in the red, when both the degree of disability and her employment percentage were unchanged. – I didn’t work more hours, but I got paid more for the same job. Legislation must be brought forward so that disabled people can keep their pay rise. Labor Minister Marte Mjøs Persen (Ap) responds as follows: – It is the social security, not the salary, that is being cut. She repeats what she has said many times before: – The important thing is that it should pay to work. You don’t get as much from social security as you earn from working. – But in this case, everything and more disappeared, so it wasn’t worth it to get a salary supplement? – If there is a case that weakens the incentive to work, I must of course look into it. We are now going through these examples, says Persen. But she sticks to the main principle that social security should go down if wages go up. – Salary above the income limit is deducted based on previous salary income. Persen has previously called other cases of social security deductions for disability “unreasonable”, and she has announced changes. Ruined health Turid Søfteland says that the year before the wage increase she started working 80 percent, because political decisions meant that she could not manage financially with a half-time position. – First I lost NOK 15,000 annually when the Labor Party took away the opportunity to deduct large sickness expenses from tax. The Supreme Court then ruled that disability benefits should be taxed as ordinary income. Although they increased the disability insurance a little, I lost a new NOK 12,000 net annually. – The sum of this meant that I had to push myself to work more, quite simply, because I’m single and it didn’t work out financially. But in 2023 he will still be back to a 50 percent position. – Because I have ruined my health more. I really enjoyed my job, but I was pissed off when I lose NOK 7,000 to get more in salary. This does not rhyme. – It is not Nav’s fault when the politicians have determined the legislation that does not facilitate a pay increase for the disabled, believes Turid Søfteland. Photo: Camilla Næss / news Pension fund: “Salary determines, not employment percentage” – I understand that it can seem very unreasonable. That’s according to subject manager Hilde Wærness Jensen at the State Pension Fund. – Disability benefit and disability pension are two independent schemes with two different regulations and are not co-ordinated. The politicians in the Storting adopt both regulations. The disability pension scheme must cover loss of income in the event of illness. – In general, this means that if the salary increases, the pension will be reduced. But she says that people on disability benefits can apply to have their income limit increased if their wages increase more than the annual general wage growth in society. – Social security and pensions depend on what you earn. Should it rather depend on how much one works? – We don’t think anything of that. We must adhere to the regulations which state that we must take account of pensionable income and not employment percentage, replies Jensen. Søfteland says she has actually applied to Nav and the pension fund to increase the income limit. – I applied with documentation that I had an increase in salary and not working hours. I was turned down because the salary had not increased enough. According to the regulations, I have both too much and too little, she sighs. Wage season cuts the disability pension Public employees who become disabled may be entitled to both a disability pension from the public pension fund and disability benefits from Nav. Hilde Wærness Jensen is manager of the retirement department at the State Pension Fund. She answers news’s questions as follows: A disabled person in a part-time position who received well over 11,000 in salary supplement (including individual supplement), received a repayment claim of approx. 11,500 from Nav and 6,500 from the State Pension Fund. What is your explanation and comment on why it turns out this way? Briefly explained, the scheme for disability pension covers loss of income in the event of illness. In general, this means that if the salary increases, the pension is reduced. The income limit is determined when the disability pension starts, based on expected income. The limit increases automatically every year with the same percentage rate as the general wage growth in society. What does it take for a disabled person in a part-time job to be able to keep the pay increase? In which case will they lose out on pay week? Those who have a partial disability pension can, in some cases, have their income limit increased further if they have had a permanent pay increase that is not due to an increase in the percentage of employment. You can apply to increase the income limit if the salary increase is permanent and greater than the automatic regulation. https://www.spk.no/uforepensjon/entekt-i-tillegg-til-uforepensjon/endring-av-entektsgrensen/ (Note from news: According to this website, a prerequisite for increasing the income limit is that “the wage increase is higher than the regulation of the national insurance basic amount (G) without the position size being increased”. G is adjusted on 1 May each year, and is now NOK 111,477.) The income limit is automatically regulated each year. If the salary increase of the person concerned is equal to or lower than the regulation, it will have nothing to do with the disability pension. If the salary increase is because you work more than expected, receive variable supplements or increase the percentage of employment, you may risk receiving a claim for back pay. Why can/should the reduction from Nav and the State Pension Fund not be coordinated? There are two different schemes with two different regulations. The politicians in the Storting adopt both regulations. Should disability benefit and disability pension depend on what you work, and not what you earn? We don’t think anything of that. We must adhere to what the regulations say we must take into account, which is pensionable income and not employment percentage. Simply explained, what does it take to increase the income limit (and thus reduce deductions as a result of increased salary)? We do not know how high the person’s salary is, but she can apply to have her income limit increased if she has received a permanent salary supplement. Then she applies by logging into My page at spk.no and sending us a message that she has received a new salary. We encourage you to apply for a new income limit as soon as possible after you have received a pay rise. We specify that everything above applies to salary increases linked to positions in the public sector.
ttn-69
Nav and the pension fund demanded back 7,000 more than she got in salary week – news Vestland
