Agreement on improved pensions for state sector employees

Saco-S, (which includes SULF), has signed an agreement with the Swedish Agency for Government Employers regarding improvements to the pension agreement for employees within the state sector, PA-16. The agreement covers all state universities, as well as Chalmers and Jönköping University. The new agreement, which applies to employees born in 1987 or earlier, comes into force on 1 January 2024. The two most significant changes are that:

• the payments made to your pension will increase due to the introduction of an additional payment to the flexible pension and

• you will continue to earn a defined contribution pension if you work until the age of 69. (Today the age limit is 65).

The payment to the flexible pension will be 1.5 per cent of salary for employees born in 1966 or later and 0.5 per cent of the salary for those born in 1965 or earlier. To compensate for this difference, employees born in 1965 or earlier will still be entitled to apply for partial retirement from the age of 61. The flexible pension earned can either be used to reduce working hours in the years leading up to full retirement or added to the future pension, which will then be higher than it would otherwise be.

Employees born in 1988 or later already earn 1.5 per cent of their salary as flexible pension contributions, and for this category of employee it is already the case that pension is earned until the age of 69. Through this historic agreement, those born in 1987 or earlier now also have the same conditions as the younger age group with regard to defined contribution pension.

For further information, please see the Saco-S website (in Swedish). SULF will soon provide more detailed information about how this agreement benefits our members.