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The pension system in Sweden |
You could describe the pension system in Sweden as a three level pyramid represented by: state pension, occupational pension and private pension
State pension
Some of the state pension is called premium pension. This can be invested in funds selected by the employees themselves.
- KPA Pension invites employees to place their premium pension in one of the four ethical KPA funds
Occupational pension
The occupational pension is negotiated by collective agreement between employers and trade unions. More than 90 percent of the employees in Sweden are covered by such an agreement. KPA Pension is mainly concerned with two pension agreements:
KAP-KL is one of the main collective agreements. It covers employees within Swedish municipalities, county councils, regional governments, and companies owned by these authorities. In total more than a million employees are covered.
PA-KFS covers employees working in municipal companies.
Common to both agreements; employees make decisions over part of their pension plan themselves. Employees choose the insurance company where the pension funds are to be placed, and the type of fund.
- KPA Pension offers employees a choice of saving in a traditional pension insurance scheme or investment fund insurance (unit-link).
Although municipalities and county councils represent KPA Pension’s main market, KPA Pension is a viable alternative for civil servants and private employees when selecting an occupational pension plan.
Private saving
Anyone can save privately in KPA Pension insurance schemes and investment funds. We offer:
- Private traditional pension insurance
- Private investment fund insurance (unit-link)
- Direct investment fund saving
Services for employers
The insurance company for the “non-selective” within the collective KAP-KL agreement. If employees do not choose where to invest their occupational pension funds, the funds are invested with KPA.
- Pension administration. KPA Pension looks after pensions for approximately one million employees and pays out pensions to over 3090,000 pensioners each month.
- Collective agreement occupational group life insurance TGL-KL for over one million employees.
- Calculations and prognoses for pension liabilities.
- Consulting services and training.