Armed Forces withheld millions from 1,400 employees

Labour committee rules that employees should have been paid 26 million kroner more

Mar 27, 2014

An arbitration panel decided on Tuesday that the Armed Forces should pay 1,400 employees a total of 26 million kroner in additional pension payments relating to the period 2006-2011, according to Politiken. The case was initiated by HK Stat and LO after the Armed Forces refused to make a payment in 2012.

Ny Løn messes up calculations
The problem started when the Armed Forces, in connection with a pay reduction and introducing a new payment system, Ny Løn, agreed to make a supplementary payment. However, it failed to factor him the employees' pensions, and when 40 of them complained, they were given supplementary pension payments.

By that time the Armed Forces had calculated that 1,400 were entitled to the supplement – a total expense of 36 million kroner – and so it stopped the supplementary pension payments.

Limitation on payments
However, a labour committee decided that the employees should only be paid 26 million kroner and not the full 36 million kroner due to a rule that limits the number of years a claim can be backdated.

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