Common use of Calculation of pensions Clause in Contracts

Calculation of pensions. 1. If a person is entitled to an old-age, disability or survivors’ pension under the Norwegian legislation without proceeding to totalization, the Norwegian agency shall calculate the pension entitlement directly on the basis of the insurance periods completed in Norway and only under the Norwegian legislation. That competent agency shall also calculate the amount of the old-age, disability or survivors’ pension that would be obtained by applying the rules specified in paragraph 2. Only the higher of these two amounts shall be taken into consideration. 2. If a person is entitled to an old-age, disability or survivors’ pension by virtue of the Norwegian legislation, with his right being created solely by taking the totalization of the insurance periods into account pursuant to Article 11, the following rules apply: a) the competent agency shall calculate the theoretical amount of the pension due as if all the insurance periods completed according to the two Contracting States' legislations were exclusively completed under the Norwegian legislation; b) the competent agency shall then calculate the amount due, on the basis of the amount specified under a), in proportion to the duration of the insurance periods under Norwegian legislation, in relation to the duration of all insurance periods accounted under a); c) if the period of coverage in Norway or the sum of Norwegian and Indian periods of coverage exceeds 40 years, the years in excess shall be disregarded for the purposes of this calculation. With regard to determining supplementary pensions, only pension point years in Norway and insurance periods in India shall be taken into account.