Norway’s Supreme Court has granted an appeal for a case relating to guard and vessel pensionable allowances in the country’s armed forces.

The Norwegian state appealed to the country’s Supreme Court in June 2024. The court’s appeals committee has now decided to take the case to the Supreme Court for consideration. A decision is expected within six months with the hearing set for 25-26 February 2025.

A statement on the Norwegian Public Service Pension Fund (SPK) website said: “Previous judgments in the case make it difficult for us to assess what should be pensionable income in addition to a fixed salary. Nobody benefits from such uncertainty. Therefore, the Government Attorney on behalf of the state appealed the case to the Supreme Court earlier this year.”

Two previous court cases on the issue reached different conclusions and SPK said the most recent ruling, by the Court of Appeal, makes it “difficult to assess what should be pensionable income in addition to fixed salary”.

The case involves two defence employees who took legal action against the state to have watch and vessel allowances included in the pension basis for the old-age pension provided by SPK. The case has been heard by the Social Security Court and then in the Gulating Court of Appeal.

“According to the agreement on working time regulations for the armed forces (ATF), the supplements are compensation for overtime. Overtime is not pensionable income according to the Norwegian Pension Fund Act. However, the Court of Appeal concluded that vessel and watch allowances should be considered fixed pensionable allowances. Here, the Court of Appeal and we disagree,” SPK legal director, Rune H. Kristoffersen, previously said.

SKP argues that the Act on the State Pension Fund (Section 11) sets out in law which income is eligible for pension accrual. Fixed income is pensionable and although supplements can be included for the pension basis under certain conditions, overtime is not pensionable in the State Pension Fund.

In the armed forces, the agreement on working time regulations defines how employees are compensated for work beyond normal working hours. Vessel and watch allowance, which is part of this agreement, applies to work beyond normal working hours and is compensated with salary and time off.

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