- 30 Nov 2015
The Danish Minister for Employment has introduced a bill to amend the Danish Social Pensions Act in order to raise the statutory retirement age to the effect that persons born after 31 December 1962 will now qualify for old-age pension under the national pension scheme in Denmark at age 68.
The Danish Minister for Employment recently introduced a bill to amend the Danish Social Pensions Act and the Danish Industrial Injury Act. With the average life expectancy in Denmark being on the increase, the Bill is intended to ensure that the increased life expectancy will also lead to more active years on the labour market. The adjustment of the statutory retirement age forms part of the political welfare reform agreement from 2006. One of the reasons given for the Bill is that it will contribute to making the pension and retirement system more robust relative to the increased life expectancy, that it will contribute to financing the Danish welfare system in future and that it will make up for the increased healthcare costs resulting from the increasing proportion of old people. The Bill therefore proposes to raise the statutory retirement age for persons born after 31 December 1962 to age 68.
The Bill also proposes to specify in the Social Pensions Act that there must be a new proposal to raise the retirement age again in 2020.
The higher retirement age will increase the cost of employers with regard to work-related injuries. This is because employees who have suffered a work-related injury are entitled compensation until the date when they qualify for old-age pension under the national scheme in Denmark.
The Bill therefore also proposes to amend the Industrial Injury Act. The purpose is to ensure that employers which are required to have insurance in place for work-related injuries do not terminate cover because of the increase in premium which is the result of the higher retirement age. Accordingly, employers will not be permitted to terminate cover just because the premium has increased as a result of employees having to stay longer in the labour market.
The Bill is currently at the committee stage.
Norrbom Vinding will, of course, follow up on the Bill on its passage through the Danish Parliament.