The private sector AFP (Avtalefestet) pension scheme is based on collective agreements covering around 800,000 workers. These agreements protect 50 %, and along with special qualification rules create entry and exit flows generating large pension gains and losses. One in every four people covered by AFP nine years before the age of 62 does not qualify for benefits, and disability is the cause in a third of them. When disability is not taken into consideration, as many as 15–20 % still do not qualify. Sixty percent of this exit is due to individuals leaving a company covered by a collective agreement, and 40 % by people in companies exiting collective agreements or closing down. Women have higher exit rates than men. Pre-retirement exits and associated loss of rights contribute significantly to lowering the costs of the AFP scheme, while measures to close the gaps increase annual costs by up to 25 %.