Civil servants will be exempt from compulsory contributions to the pension scheme and collection via tax card and tax ticket will be temporarily suspended.
The Inatsisartut adopted this on Monday when they discussed changes to the mandatory pension scheme.
The Greenland Government has decided to set up an expert group that will be tasked with reviewing the entire pension system, including the rules regarding old-age pension, civil servant pension and mandatory pension scheme.
The coalition has promised a major evaluation of the mandatory pension scheme, and Greenland Government will wait to make more far-reaching decisions until the expert group has completed its work.
While they wait for it, the percentage for the savings obligation is frozen at 9 percent.
The new changes to the mandatory pension scheme will come into effect for the 2026 income year.
Election promises about the pension scheme
Up until the Inatsisartut election last year, the parties were not in any doubt. A majority wanted the mandatory pension scheme abolished.
The scheme was adopted in 2016 and has long been criticized for forcing citizens to save for their retirement.
Therefore, Atassut, Demokraatit and Naleraq wanted the law to be repealed, while IA wanted changes and Siumut wanted the scheme to be continuously reviewed.
However, after the election, the tone changed slightly. The coalition agreement between Demokraatit, IA, Siumut and Atassut included a settlement on a pension reform, including an evaluation of the mandatory pension scheme – so not an outright abolition.
Civil servants are exempt
Until now, civil servants have not had to pay into the pension scheme from their salaries, but special allowances and additional work have been subject to pension obligations.
With the new arrangements, civil servants do not have to pay into the pension scheme from the salary they earn as civil servants. If they earn money on the side in a possible side job, they are obliged to pay into a pension scheme from this.
They are still entitled to a civil servant pension, but it is now voluntary whether they want to pay into their own pension savings.
Tax cards and tax tickets
A particularly criticized part of the pension scheme has been that if you did not pay what you were supposed to into your pension scheme, you would get an increased deduction percentage on your tax card or increased tax tickets.
This scheme will be discontinued for the income years 2026 and 2027, the Inatsisartut has now decided.
This means that in future the tax administration will only send a request for payment of unfulfilled savings obligations to a pension scheme.
The Greenland Government hopes that the expert group will propose an effective but also less intrusive solution than the current one.
Motion of no confidence
Naleraq stands by their election promise and had put forward a proposal at the autumn session 2025 to abolish the mandatory pension scheme.
It was discussed for the second time at the spring session, where only Naleraq voted in favour – thus the proposal was rejected.
When Naalakkersuisut's proposal was up for debate on Monday, Naleraq moved a vote of no confidence in Naalakkersuisut's Minister for Finance and Taxes, Aqqaluaq B. Egede (IA).
- It is completely untrue when Naalakkersuisut's Minister for Finance says that Naleraq has not taken a position on the mandatory pension scheme, the party said.
However, the coalition stood behind Aqqaluaq B. Egede, who was thus saved. He also said that he had not made a single incorrect statement.
16 voted in favor of Naalakkersuisut's proposal, while eight voted against. Thus, the changes to the mandatory pension scheme were adopted.
