KLP required to change practices in the public occupational pensions market

The Norwegian Competition Authority’s assessment is that KLP’s conduct may have weakened competition in the market for public occupational pensions. KLP is now required to change its practices to strengthen competition for the benefit of Norwegian municipalities.

Since 2022, the Norwegian Competition Authority has investigated whether KLP has abused its dominant position in the market for public occupational pensions. The Authority has now adopted a decision in the case.

– Our assessment is that KLP has harmed competition by actively and strategically influencing municipalities not to put public occupational pension services out to tender. This may have resulted in higher costs and lower-quality services for municipalities, says Director General Mads Magnussen.

In response to the Norwegian Competition Authority’s concerns, KLP has proposed several commitments. These commitments require the company to cease influencing municipalities’ tender processes for occupational pension services and to address the negative effects of its previous practices.

Occupational pensions represent one of the largest expenditures for municipalities, meaning that increased competition could generate significant cost savings. The pension benefits paid to municipal employees are the same regardless of which provider a municipality chooses. However, the costs associated with the services offered by pension providers may be reduced if competition becomes more effective.

– Tender procedures are a prerequisite for effective competition in this market. The Norwegian Competition Authority’s decision will help ensure that more municipalities conduct competitive tender procedures for public occupational pension services. This could make it easier for new competitors to enter the market and contribute to better offers for municipalities, says Elisabeth Steckmest, Project Manager at the Norwegian Competition Authority.

KLP does not agree that it has abused its dominant position. Nevertheless, the company has proposed measures aimed at addressing the Norwegian Competition Authority’s concerns.

– We have had a good and constructive dialogue with KLP and are satisfied that the company has chosen to address the Norwegian Competition Authority’s concerns by offering to change its practices. This has enabled us to resolve the case through measures that can quickly improve competition in such an important market, says Magnussen.

The measures KLP has committed to are binding, and the Competition Authority will monitor the company’s compliance going forward. At the same time, the decision brings the Authority’s investigation into KLP to a close.

About the investigation

• The investigation into KLP began with an unannounced inspection in 2022.
• The case has been time-consuming, as the Authority has reviewed extensive volumes of information, including internal documents and external communications with 46 municipalities and county authorities over several years.
• The investigation was concluded by a decision adopted on 25 August 2026.
• This case concerns KLP’s obligations under competition law and does not concern municipalities’ obligations under public procurement rules.