The article addresses the high costs associated with public service pensions in Norway and the lack of competitive bidding among municipalities. It raises critical questions about how municipalities can ensure they receive the best offers in a market dominated by a single provider, KLP.

Recently, the Norwegian competition authority concluded an extensive investigation into potentially harmful practices in the public pension market, particularly focusing on KLP, the largest provider. The investigation revealed concerns that KLP may have systematically influenced many municipalities to avoid competitive bidding, leading to insufficient decision-making when considering outsourcing public pension services.

The competition authority emphasizes that the competition in public pensions is not about employees' pension rights, which are protected by existing agreements, but rather about the costs municipalities incur for management and administration of pension schemes. Effective competition can lead to better services and solutions for municipalities and their residents.

In response to the authority's concerns, KLP has committed to implementing measures that will encourage more municipalities to conduct competitive bidding. This could facilitate the entry of new providers and improve the overall offerings available to municipalities.

The article concludes by questioning whether municipalities will increasingly utilize competitive bidding to secure better deals, noting that even small price differences can lead to significant savings. It stresses that good competition does not necessarily mean all municipalities will switch providers, but it does require regular challenges to existing suppliers to ensure the best offers are available.