Kommunal Landspensjonskasse: Understanding Norway's Pension Fund

Kommunal Landspensjonskasse is one of Norway's largest pension funds, with a significant impact on the country's retirement savings.

It was established in 1977 to manage the pension assets of Norway's municipalities and county councils.

The fund's primary goal is to provide a stable and secure retirement income for its members.

Kommunal Landspensjonskasse has a strong track record of investing in a diversified portfolio of assets, including stocks, bonds, and real estate.

KLP was founded as a managed fund under the Norsk Kollektiv Pensjonskasse on 15 February 1949.

The company was created as a result of decisions by the Union of Norwegian Cities and the Norwegian Association of Rural Municipalities with the aim of offering municipal employees occupational pensions.

KLP managed the customers' occupational pension agreements for the first 25 years.

In 1974, KLP received its own license to operate an insurance company, marking a significant milestone in its history.

For the first 40 years, KLP primarily administered collective pension schemes in the municipalities.

KLP started small but gradually grew, with the forvaltningskapital (management capital) passing one billion kroner in 1972.

By 2000, the forvaltningskapital had reached 100 billion kroner, and by 2008, it had surpassed 200 billion kroner.

KLP's member numbers also increased significantly, with the company passing the 300,000 member mark in 2008.

The company's growth was driven by the increasing popularity of collective pension schemes among municipalities.

In the 1990s, KLP expanded its business by establishing its own non-life insurance company, property company, and asset management company.

KLP's growth continued, with the company becoming a major player in the Norwegian pension market.

In 2011, seven municipalities and one county municipality chose to put their occupational pension scheme out to tender, with seven out of eight choosing KLP as the provider.

Kommunal Landspensjonskasse has been granted a concession to operate insurance activities, specifically life insurance within class I and III, as per the Insurance Act of 2005.

The concession was granted on June 10, 2005, and is valid for 12 months, after which it will expire if not utilized.

KLP (Kommunal Landspensjonskasse gjensidig forsikringsselskap) has been given permission to own 100% of the shares in Kommunal Landspensjonskasse Innskudds- og Foretakspensjon AS, as per the Financial Activities Act of 1988.

KLP's restructuring, including the establishment of Kommunal Landspensjonskasse Innskudds- og Foretakspensjon AS as a subsidiary, has been approved.

Here are the requirements that Kredittilsynet has confirmed: