Pensions – a general picture
Your pension consists of three main components; the national retirement pension, the occupational pension for government employees which is regulated by the PA 16 Collective Agreement, and any private pension savings you may have undertaken. The latter will not be dealt with in any detail here.
Both the retirement pension and the occupational pension are paid in by the employer when salary payments are made.
National retirement pension
This pension is calculated on your income generally from employment, but also income from unemployment, sickness benefits and activity benefits, parental allowance and education allowance. Scholarships are not pension-generating.
The national pension system has two components: income pension and premium pension. The premium pension, which is the smaller of the two parts, is placed in mutual funds and you have yourself the opportunity to make your fund selection. For more information on this see Fondkollen and the Pension Agency website.
In order to receive an occupational pension, you must be employed by an employer who has entered into a collective agreement. Only employees are able to earn such pensions. If you have a scholarship you are not an employee and consequently do not generate occupational pension contributions.
As a state employee, you are covered by the state occupational pension agreement PA16. If you were born before 1988 your occupational pension consists of three parts: defined benefit retirement pension, Kåpan Tjänste and individual retirement pension. You have the opportunity to decide how the individual retirement pension is placed.
If you were born 1988 and later your occupational pension consists of three parts: defined benefit retirement pension, Kåpan Tjänste and Kåpan Flex pension. You have the opportunity to decide how the individual retirement pension is placed.
Regardless of your date of birth, disability benefits that you receive when you are sick are included in the state employers’ occupational pension. In addition, compensation can be paid to your beneficiaries if you die.
For more information go to the The National Government Employee Pensions Board (SPV) website. Their website also shows how much the employer pays in pension contributions each month (in Swedish), for state employees.
Rules for the selectable part of your occupational pension
If you have a separate agreement with your employer regarding supplementary payments into your pension plan, (löneväxling), your extra pension contributions will fall into the selectable part of your pension. This agreement therefore fulfils our members’ wish for greater freedom of choice. For more information about the changes go to The National Government Employee Pensions Board (SPV) website.
- You need to apply for payment of the selectable part to be made yourself. You do this by contacting the insurer you have chosen. If you do not apply for payment to commence, payment will automatically begin on your 71st birthday and continue as long as you live. From 2023, the age will be raised to 72.
- You can choose for payment to be spread over the rest of your life or to be made during a fixed period, which must be at least ten years.
Your future pension?
It is never too early to start planning for your future pension and in higher education, it is important to consider how different forms of funding, such as scholarships, affect its level. For information regarding the prognosis for your pension, log on to minpension.se. If you have questions about your occupational pension please contact SPV, or contact the Pensions Agency for issues concerned you national retirement pension.