Based on the negotiation protocol from the settlement in 2002 between SAFE, Industri Energi and the Norwegian Shipowners’ Association (NR) concerning mobile offshore units and drilling on fixed installations on the Norwegian Continental Shelf, the parties in 2005 agreed that there should be established a scheme for compensation for lost pension rights. At 20.09.2005 by-laws were adopted for the scheme. The changes set out here is a consequence of the pension reform and that the Pension Insurance for Seamen will be changed.
These new by-laws replace the «Regulations of 20.09.2005/2011 for compensation fund within the NR-sector». The by-laws enters into force immediately after the respective federations have adopted them.
2. Principles of the scheme
The purpose of the scheme is to provide benefits for lost pension rights as a result of dismissal due to operational restrictions. This benefit can also be granted if the resignation is not voluntary and is not due to the applicant’s own circumstances. The benefit may also be granted to individuals who have put down considerable work for SAFE or Industri Energi within the NR-sector.
The scheme is organized corresponding to a fund. SAFE and Industri Energi are the owners of the scheme. The scheme is managed by a Board. Industri Energi holds the Chairman and one member. SAFE has the general manager and one member. In addition, the SAFE holds the secretariat. Applicants should be aware that the benefits from the scheme may be subject to integration with other public benefits. Applicants should familiarize themselves with the regulations. The applicant can choose the time of withdrawal of the benefit individually.
The companies covered by the scheme, shall effective from 01.06.2002, on a monthly basis provide the fund with NOK 110, – per worker who is a member of SAFE or Industri Energi. The same amount is paid for non-union workers, in order for the scheme to be as comprehensive as possible. If one of the organizations establish affiliation agreements within the NR-sector, they are obliged to report this to the secretary for the recovery of the funds.
The funds are paid into the account number 3201.32.88029. The Board is free to choose another bank as a partner. If the board chooses to change partner, the Board shall provide the respective federations and NR with such information as early as possible prior to the change takes effect.
Payments from the scheme will be administered in the manner the Board considers most appropriate.
3. Who will be covered by the scheme
The employee must have been a member of SAFE and/or Industri Energi and/or been non-union for at least one year before dismissal.
4. Conditions for the benefit to be granted
Compensation for lost pension rights may be granted if the Board of the compensation scheme finds it reasonable. Otherwise the criteria applies for processing of the application.
Criteria in order to approve applications submitted:
- At least 15 years of seniority in the current sector. Transitional scheme for applicants who have been employed by the two companies that constituted the NR-agreement applicable within platform drilling in 1998: If the applicant has been covered by the NR- agreement since the date of transition and previously hold seniority in the two aforementioned companies prior to 1998, this is included such that the sum constitutes at least 15 years.
- Must be between 57–60 years and affiliated to mobile units.
- Or be between 59-62 years and affiliated to a fixed installation.
5. Calculation of the benefit
The economic agregate of the Compensation is calculated by the Board or those who the Board at all times cooperate with for paying the benefits.
The size of compensation should be within the range 0 to 6 G, and to be paid as a lump sum. It is the average G at the time of application that will be applied. The compensation shall not exceed a 2 G per year the compensation is meant to cover.
Each application is treated individually. At calculation of compensation the applicant’s regular wages shall be in focus and together with the time that is left until the applicant’s regular retirement age. (60/62)
At the calculation, the Board has discretionary power to put emphasis on the economic situation of the scheme at any given time.
The scheme will not be obliged to pay benefits beyond the funds which at any given time is available in the scheme. Payments from the scheme will be taxable.
Amendments must be approved by both the Industri Energi and SAFE.
6. Provision of procedure
6.1 Limitation period
The deadline for seeking compensation from the scheme is 1 year after the applicant could have retired with pension, or after that the two years limit period for reinstatement has expired.
6.2 Applicant’s duty of disclosure
The applicant is obliged to provide information and shall give the scheme, by the Board, complete and accurate information about conditions the Board will need to decide on the application. Whoever knowingly provide incorrect or incomplete information or withholds information may lose the possibility that the application be subjected to processing.
6.3 Principles of administrative procedure
Efforts for proper processing is intended, principle of equality, guidance principle, duty of confidentiality, requirement to give grounds for decisions and the possibility of appeal etc.
7. The Board
A board is established to deal with applications for benefits, approve the accounts and budget as well as managing the scheme’s funds. No decisions on payments from the scheme shall take place without the Board’s approval.
SAFE and the Industri Energi appoints 2 Board members and 1 deputy each. Industri Energi hold the duty of chairman. SAFE has managerial duties. In addition, SAFE provides for the secretarial function, including accounting. Deputies and Secretary of the Board are entitled to speak and forward proposals, but no voting rights on the Board. Board leaders have the casting vote at equality. The Board will arrange meetings convened by the Chairman or the General Manager.
SAFE is responsible for the administration of the scheme on behalf of the Board. The part of the scheme’s funds spent on administration to be kept as low as possible. The administration should facilitate applications received for the Board to consider, maintain records of the scheme and will perform the collection and disbursement of funds. The Administration shall provide the management of the fund’s assets in accordance with the decisions by the Board.
9. Audit committee
The respective control committees of the federations have full access to the documents of the scheme.
10. Appeals committee
The Appeals Committee handles complaints on Board decisions in cases concerning the payment of benefits. The Appeals Committee consists of the same persons who the Industri Energi and SAFE make use of for the Appellate Committee for the loss of health license certificate scheme in the OSO-schemes, as well as the impartial person in the Appeals Committee.
If the Appeals Committee finds that the decision should be reversed, the Appeals Committee shall approach the Board and ask for a retrial of the case. The Appeal Committee has no authority even to overturn the decision of the Board.
11. Amendments to the bylaws/guidelines for approval of application
The Board may propose amendments to the bylaws. Amendments must be approved by both the Industri Energi and SAFE.
Board of the scheme has a mandate to change the guidelines. Changes of guidelines requires a 2/3 majority of the Board.
12. Termination of the scheme
SAFE or the Industri Energi may terminate the scheme with 6 months preceding a written notice. If the scheme is terminated, the accrued funds of the scheme are transferred to SAFE and Industri Energi and split proportionately between them pursuant to memberships within the NR-sector at the closing date.
Each of the organizations then has a duty to continue the scheme in accordance with these guidelines for their own members.
Clarification by the Board
Applicants must be aged respectively 57/59 years at the time of retirement
The compensation applies to lost pension rights.
The day for payout is 60 and 62 years respectively, when it is at this point in time that the loss in pension is realized.
After an assessment the Board may grant exemptions from this provision.