Alecta manages occupational pension plans for 2.3 million people and 34,000 businesses across Sweden. Our most important task is to ensure that your occupational pension grows and while working to ensure that more people are able to benefit from the security which an occupational pension provides.
Alecta exists to provide financial security to working people who have an occupational pension through their job both during their working lives and after they retire. We only manage collectively agreed occupational pension plans and our main focus is on ITP, the pension plan for private-sector employees. Alecta won the contract to manage the plan, which is awarded by the Confederation of Swedish Enterprise and the Council for Negotiation and Cooperation (PTK), in competition with other companies.
Alecta’s mission is to maximise the value of the occupational pensions it manages. In other words: to create as much value as possible for each krona that is paid into your pension. We are also there to help if you have any questions about how it works.
If you are a corporate customer that is paying for your employees’ occupational pensions, our task is to offer you an attractive pension solution at the best price.
Simplicity, customer benefit and responsibility – these are our core values.
Alecta was established in 1917 as a result of a common desire of Swedish employers and their employees to provide greater security to more people also after the end of their working lives. The goal was to provide a pension that followed the employee even when he or she changed employers.
Together, they created a pension solution that has become a model for today’s occupational pensions and today ITP is a complete income security package consisting of a retirement pension, additional disability insurance and family cover in case of death.
Alecta has been taking responsibility for the future since 1917. We believe the Swedish model has worked well and we want it to continue to do so for all of tomorrow’s citizens. That’s why we are working to ensure that the model is developed so that it is able to cope with the challenges that the future will bring.
For Alecta, a sustainable pension system is a system that the citizens feel confident will work both when it is time for them to retire and throughout their lives.
Our commitments stretch as far into the future as the end of the present century. That’s why we want to use our long experience to develop tomorrow’s pensions and help to build a good society. We believe prudently designed income security systems can give people security while at the same time helping to build a well functioning society and economy.
As an occupational pension provider, we take responsibility for many people’s future. After all, it was precisely to ensure that more people could rely on promises of greater security in old age that Alecta was established a hundred years ago. Alecta’s founders were driven by an important conviction – that security increases when it is shared. We are still convinced that that is exactly how it is.
Our mission is to manage the collectively agreed ITP occupational pension plan. The contract to manage the plan, which Alecta won in competition with other companies, is awarded by the employer and union organisations – the Confederation of Swedish Enterprise and the Council for Negotiation and Cooperation (PTK). That’s why we differ slightly from other companies in terms of how we work and in our views on long-term asset management, fees and costs.
We do not sell insurance policies, investment funds or other individual savings products. Our private customers come to us because the companies that employ them have concluded a collective bargaining agreement and joined an occupational pension scheme.
We manage all assets directly and believe in active management. This means that we do not seek to track an index and that each investment is made on the basis of our own research. We hold personal meetings on an ongoing basis with all companies in our portfolio.
We want to use the knowledge we possess to strengthen our customers and give them and many others keys to better understand their pensions and prepare for their retirement. We also want to influence our industry’s ability to take a long-term approach and promote sustainable development.
We focus on ITP, are cost-aware like few others and our economies of scale enable us to keep our fees very low. That benefits our customers in the form of lower pension costs and higher pensions for the employees.
We are a mutual company, which means that we are owned by our customers. Mutuality is a form of integrated customer protection. All profits are returned to our customers and nobody else. For our private customers this means a higher pension and for our corporate customers this is about lower premiums.
Our principals – the employer and union organisations – have chosen to integrate yet one more consumer safeguard in collectively agreed occupational pension schemes. Already at the procurement stage they demand a high standard of consumer protection, which includes the fees charged by the pension providers. The idea is to make it hard for the customer to make a wrong choice by shifting that responsibility to the parties to the collective agreement.