Norway’s Supreme Court has ruled that vessel and watch allowances should be included in the pension basis as variable allowances under Section 11, second paragraph, of the SPK Act.

The Central Government Collective Agreement, Appendix 4, states that supplements earned up to 1 January 2020 may be included in the pension base, with an upper limit of NOK 66,000 annually.

For earnings in the years after 2020, Appendix 5 applies, which does not have such an annual limit.

The Norwegian state initially appealed to the country’s Supreme Court in June 2024, which heard the case on February 25 and 26.

The Supreme Court reached the same conclusion as the Social Security Court.

The case involved two coast guard defence employees who filed a lawsuit against the state to have watch and vessel allowances included in the pension basis for old-age pensions from the State Pension Fund.

The case was heard in the Social Security Court and the Gulating Court of Appeal, which reached two different conclusions.

Consequently, the state appealed the case to the Supreme Court.

SPK said it was reviewing the verdict with the government attorney and would “return with more information.”

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