Almost two weeks ago, news wrote that the proposed pension increase will be around 8 per cent. In an interview on Monday, Finance Minister Trygve Slagsvold Vedum confirms this. – There will be a real boost for pensioners in this year’s settlement. In the revised national budget, we included a basis for a settlement of 8.5 per cent, says Vedum. This means the settlement of the ages for the country’s pensioners and a record-breaking payment in June. – With the price growth we have seen in recent years, this is a very correct priority. The government will present this year’s social security settlement on Tuesday. Meeting demands from the Pensioners’ Association Vedum did not want to be exact down to the smallest decimal, but said that the increase would be about 8.5 per cent. In NOK terms, a pension of NOK 450,000 will then increase by NOK 38,250. An income of 300,000 will increase by 25,500 kroner. This meets the demands of the Pensioners’ Association, which has demanded an 8.54 per cent increase in old-age pensions. The Minister of Finance says there are several elderly people who have struggled with the price increases recently. He is therefore well satisfied with the settlement for the pensioners this year. Illustration: Gorm Kallestad / NTB The government also gives tax relief to those with the lowest pension. – In addition, we have a tax cut for those with pensions under NOK 370,000, says Vedum. In total, the increase in benefits will cost the government approximately NOK 10 billion. – It is a big boost and a commitment in this year’s revised budget. We have made room for this, he says. New model The reason why this year’s settlement is so good for pensioners is that the calculation method was changed a couple of years ago. In 2020, the Labor Party, the Center Party, SV and the Progress Party joined forces to create a new model for calculating benefits. Before, social security increased in line with wage increases, minus 0.75 per cent. With the new model, the regulation of pensions follows an average of wage and price growth. – Now this change is kicking in with full force, says Vedum. The Minister of Finance adds that price growth will calm down over time and that pension settlements in the future will therefore do the same. – That is why this model works so well. It provides more money to pensioners in particularly demanding times. A “solid” social security settlement Disability benefits are also part of the social security settlement. When asked whether benefits will increase by the same amount for the disabled, Vedum answers no. – The figure is somewhat lower for the disabled, but it will also be a solid figure, which is above the figures that have been seen in the past. Vedum emphasizes that the settlement will be more solid, compared to previous years. But he does not want to come up with a specific figure for the recipients of disability benefits. – We will finally see that tomorrow. But it will be a solid social security settlement, concludes the finance minister. Last year, disability benefits increased by 4.77 per cent.
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Trygve Slagsvold Vedum promises record settlement for pensioners – news Norway – Overview of news from different parts of the country
