In Mette Frederiksen's world, few things are more important than the Arne pension, according to DR's political analyst.

Prime Minister Mette Frederiksen together with brewery worker Arne Juhl, who is the reason early retirement is colloquially called Arne pension. (Photo: © Claus Fisker, Ritzau Scanpix) 32 minutes ago

With the government's proposal for a new Finance Act, Mette Frederiksen's Social Democratic crown jewel, the Arne pension, will receive a boost of 1.56 billion kroner in 2030.

The Danes' preferred retirement scheme, the senior pension, will on the other hand be cut by 800 million kroner in 2030.

This is causing bewilderment and outrage among trade unions, patient associations, and political opponents.

- The senior pension is intended for people who are ill and worn down. I think it is a catastrophe that they want to change the senior pension in order to give it to people who want to take early retirement, says Mette Bryde Lind, CEO of the Danish Rheumatism Association.

Battle between two pensions

The Social Democrats' proposal for the Arne pension came a few months before the election on 5 June 2019.

The then VLAK government, led by Lars Løkke Rasmussen, responded quickly with the senior pension. It was passed before the election and was a pension for worn-down people who had a doctor's confirmation that they could not work more than 15 hours a week.

The Arne pension stood as a central promise in the subsequent election campaign, where Mette Frederiksen ended up as Prime Minister. It was introduced in 2022 as an entitlement for those who had been in the labor market for at least 42 years.

The two pension schemes have stood as, respectively, a Social Democratic and a liberal-conservative answer to who should be able to retire before reaching retirement age. They each represent a fundamental stance - entitlement vs. assessment.

From the start, the expectation was that the Arne pension would become the most popular. That is not how it turned out. Today, more than twice as many people receive the senior pension as receive the Arne pension. This has challenged the Social Democratic narrative that the Arne pension is the answer to wear and tear among wage earners.

Nurses: 'Completely incomprehensible and unfair'

The cuts to the senior pension have also landed as a shock in the trade union movement.

Today, work ability is assessed based on one's most recent job. The government's proposal is to assess work ability based on all types of jobs.

So, for example, it will be examined whether a worn-down nurse can manage to work 15 hours a week in another industry or in another job function.

This meets resistance from Dorthe Boe Danbjørg, chair of the Danish Nurses' Organization.

- It is completely incomprehensible and unfair to improve conditions for one group while worsening conditions for another.

Why is it a problem if a nurse has to try other functions in the labor market?

- I think it is unreasonable that if you are 64 years old and have had a long life as a nurse, you should then have to go out and be job-tested in other professions. When you come and say you need the senior pension, you have already tried the options available within the nursing profession, says Dorthe Boe Danbjørg.

No to moving money to the Arne pension

At Christiansborg, the proposal to cut the senior pension is not being received particularly well.

- The senior pension is for those who are injured and ill. They have a doctor's word that they cannot work more, says Victoria Velasquez, finance spokesperson for the Red-Green Alliance.

She makes it clear that cuts to the senior pension will not happen with the Red-Green Alliance's votes.

The blue parties also have little appetite for the proposal. And that could prove to be something of a headache for the government.

The senior pension is covered by a political settlement, which means the government must have all parties in the settlement circle on board with the changes if they are to become a reality in this election period.

In addition to the government parties, the Liberal Party, Liberal Alliance, the Conservatives, and the Danish People's Party are also part of the settlement.

And the Liberal Party's finance spokesperson, Stephanie Lose, clearly says no to the current model.

- The specific model in which money is moved from the senior pension to the Arne pension, as the government proposes, is something we will not vote for, she says.

Finance Minister Peter Hummelgaard (Social Democrats) believes it is reasonable to move money from one pension model to the other.

- We are significantly improving the right to early retirement. To make the numbers add up, it is worth discussing whether the assessed senior pension can be more targeted, says Hummelgaard.

He defends that a worn-down nurse should be work-tested in other job functions.

- That is also what we do when people are assessed for disability pension or other benefits - their work ability is also assessed, he says.

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