Danish public sector workers approve new collective agreements

Danish public sector workers have approved new collective agreements, including several pension improvements and wage increases.

Insurance and Pension Denmark (I&P Demark) has praised the social partners for the new agreements, stating they are “taking responsibility for strengthening and developing the pension system”.

“If we look at the new collective agreements across a broad spectrum, it is striking that there are improvements in the pension area in one way or another across professional groups and places of employment. Most groups have received an increased pension contribution, and especially those groups that already have a relatively high pension contribution have also been given the opportunity for increased flexibility in how the pension contribution can be used,” I&P Denmark assistant director, Karina Ransby, said.

The new collective agreements in the state sector and among academics in regions and municipalities contain a new option between salary, pension or savings for the part of the pension contribution that exceeds 15 per cent.

“The collective agreements provide somewhat greater flexibility in working life for the individual and the opportunity to adapt contributions to the retirement lifestyle they want. In this way, the new freedom of choice helps to support a sustainable pension system that combines continued high contribution rates with more individual choices. It will be interesting to see how employees prioritise in the different areas,” Ransby said.

In addition to the new pension options, the parties in both regions and municipalities have agreed to set aside money and time for pension projects. In the regions, a project on free-choice schemes is being carried out. At the same time, the municipalities will set up a dialogue forum where the parties can discuss common issues and identify barriers and opportunities to ensure a common framework for the collective agreement pension schemes.

Furthermore, a pension for pensioners in regions and municipalities has been introduced. This means that people who have retired but are returning to the labour market will now earn a pension and thus be paid on equal terms with their younger colleagues.

“Denmark has a world-class pension system. This is because the pension system has been continuously developed and adapted to the changes in Danish society. This continued fine-tuning helps to ensure that we continue to have one of the best pension systems in the world,” Ransby concluded.



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