Special pension allowance in case of redundancy due to lack of work, illness or injury
In the event of redundancy on or after 1 January 2017 due to a lack of work, the State Job Transition Agreement provides an opportunity to apply for a special pension allowance in certain circumstances.
From 1 February 2021, you can also be granted the special pension allowance in certain circumstances if you have been made redundant due to illness or injury, or if you have agreed with your employer to leave your employment due to illness or injury. According to the Agreement, this applies to cases where an employee’s ability to work is permanently reduced to such an extent that they cannot perform work of significant value or relevance to the employer.
Conditions for special pension allowance
You must be at least 62 years old; have been at least 57 years old when you left your state employment; have been employed for at least seven years by the same state employer; no longer be entitled to compensation from an unemployment insurance fund; and have been actively looking for work.
The Job Transition Committee (Omställningsnämnden) determines whether an individual is entitled to this allowance. The Committee can also examine whether there are compelling reasons for granting special pension allowance if you have left your employment at the age of 56. Special pension allowance is paid until the age of 65.
How special pension allowance is calculated
Your salary and your pensionable period of employment determine your special pension allowance. In order to find out what amount you would qualify for, you can contact Statens tjänstepensionsverk, the National Government Employee Pensions Board (SPV).
More about special pension allowance
The compensation is paid up to and including the month before your 65th birthday. Time up to the age of 65 is credited as the pensionable employment period for your future defined benefit retirement pension. Payments are also made to the defined contribution occupational pension system. These payments are calculated as percentages of the pension base. Your state retirement pension is negatively impacted, though not significantly, by the fact that any occupational pension that has been paid is not pensionable income according to the qualification criteria for state retirement pension.
More information about terms and conditions and how to apply can be found on the SPV website (in Swedish).