Compensation for illness — ITP disability pension
If you suffer from a long-term illness or disability, you can receive compensation from your occupational pension. This benefit is referred to as ITP disability pension and is paid out by Alecta.
ITP 1 and ITP 2 disability pension
Disability pension primarily works in the same way for both ITP 1 and ITP 2, but certain aspects, such as the waiver of premium insurance, are a little different depending on whether you have ITP 1 or ITP 2.
When can you receive disability pension?
Disability pension from Alecta complements the compensation you receive from the Social Insurance Office (Försäkringskassan) from the 91st day of sick leave onwards.
You can receive disability pension if you are over 18 and have an employer who pays premiums to an ITP occupational pension, and if:
- you have been ill for over 90 consecutive days, or 105 non-consecutive days within a one year period
- you have been signed off work part-time (at least 25% sick leave)
- you are receiving compensation from the Social Insurance Office (Försäkringskassan), in the form of Sickness benefit, rehabilitation benefit, sickness or activity compensation.
If you participate in a Labour market programme and receive activity compensation from the Social Insurance Office, you do not have the right to receive disability pension from Alecta.
You do not need to do anything. Your employer sends the notification of illness.
What happens when you fall ill
- Your employer sends a notification to Collectum from the 91st day of sick leave. Collectum, in turn, notifies us.
- You receive a letter from us. In the letter there is information about whether or not, you are entitled to disability pension, and how much you will receive if you are.
- If you are entitled to disability pension, we pay you directly.
We need your account details
If you are entitled to disability pension payments, we need to know which bank account to use for paying your benefits. to you. You can notify us of your bank details directly on My pages.
If your sick leave is extended
If your compensation from the Social Insurance Office is extended or changed, we will receive a notification from the Social Insurance Office. We process this information and make payment of the compensation as soon as we have received the information from them. You usually receive your payment at the end of the month, around the 30th.
GOOD TO KNOW
- Your employer sends the notification of illness.
- Notify us of your bank details, so you are sure to receive your compensation in to the correct account.
- We receive information about your sick leave directly from the Social Insurance Office, so you do not need to send your medical certificate to us.
COMPENSATION FROM DIFFERENT ORGANISATIONS WHEN YOU ARE ILL
|Sick leave day||Compensation||Who pays?|
(you do not receive any indemnity)
The Social Insurance Office
ITP Disability pension
|The Social Insurance Office
|361 - usually up to age 65 maximum*||Sickness benefit
ITP Disability pension**
|The Social Insurance Office
|If you will never be able to work full-time due to illness||Sickness or activity compensation
ITP Disability pension
|The Social Insurance Office
*If your agreed retirement age is over 65, you can receive disability pension up until your agreed retirement age. If you have ITP 1, you may be entitled to disability pension even after your 65th birthday.
**ITP Disability pension is only paid out from day 361 if your annual income is over SEK 386,400.
The amount of your disability pension
How much disability pension you receive and for how long is linked to your salary and what the Social Insurance Office pays.
DISABILITY PENSION FROM ALECTA FOR FULL-TIME SICK LEAVE (100%)
|Your annual income||Disability pension|
|Sick leave day 91**-360||From sick leave day 361|
|Up to SEK 483,000||10 %||0 %|
|Portion of salary between SEK 483,000 and SEK 1,420,000||65 %||65 %|
|Portion of salary between SEK 1,420,000 and SEK 2,130,000||32,5 %||32,5 %|
*If you are receiving disability pension from us and fell ill before 1 July 2018, you will continue to receive the same amount from us, despite the fact that the Social Insurance Office’s compensation may have increased from 1 July. We do not lower your disability pension. This may result in you receiving too much compensation from Alecta and the Social Insurance Office, in total. The Social Insurance Office is, therefore, entitled to adjust the amount, which means reducing your disability pension.
**Sick leave day 106 if you have been on sick leave for more than 105 non-consecutive days within a one-year period.
If you are on part-time sick leave, for example 50%, you will receive half of the amount.
EXAMPLE — LISA IS ON FULL-TIME SICK LEAVE
From the 91st day of sick leave onwards, Lisa is entitled to ITP disability pension. Her annual income is SEK 300,000. She is, therefore, entitled to 10 per cent of her salary in disability pension.
10 per cent x SEK 300 000 / 12 months = Lisa receives SEK 2,500 per month in disability pension, before tax. Lisa may receive disability pension until sick leave day 360 maximum.
FOR THOSE ENTITLED TO OCCUPATIONAL PENSIONS ITP TELE OR ITP BEMANNING
Disability pension for ITP Tele (Telia employees) or ITP Bemanning (staffing workers) generally works in the same way as ITP 2 Disability pension with the following exceptions:
- ITP 2 Disability pension, ITP Tele: if you receive daily sickness allowance from the Social Insurance Office, you only receive disability pension from Alecta for the portion of your annual income over SEK 364,000.
- ITP 2 Disability pension, ITP Bemanning: paid if you have worked a minimum of 416 hours in the year, or 218 hours in the last 6 months, before you fell ill. The salary your employer reports to Collectum is also calculated in a different manner.
The benefit ceases or is lowered after one year
Once you have been on sick leave for 360 days, your disability pension from Alecta ceases for the portion of your annual income which is under SEK 364,000. If you salary is higher, e.g. your annual income is above SEK 364,000, Alecta continues to pay disability pension on the portion above the threshold.
If you terminate your employment while on sick leave
If you terminate your employment during the time you receive disability pension from us, you will still be eligible for a disability pension, just as you were before you terminated your employment.
However, you won’t be entitled to an increased disability pension if you have ITP 1, for example, if you were to get 75% compensation instead of 50% from the Social Insurance Office. Different rules apply if it has been more than three months since you terminated your last insurance contract.
If you fall ill after you have terminated your employment
If you fall ill within three months of terminating your employment, you can send a notification of illness yourself. Post-employment cover is included which may make you entitled to a disability pension.
- Request a statement from the Social Insurance Office specifying your illness periods and send it to us.
- We will investigate whether you are entitled to a disability pension and get back to you with the decision.
If you fall ill after you have turned 65
You can receive compensation if you fall ill after you have turned 65. This applies if you:
- are employed and have an ITP 1 Disability pension
- receive a daily sickness allowance from the Social Insurance Office
- have not yet turned 70.
The disability pension can be paid up to day 180 in the sick leave. day 180 maximum. You are not entitled to a disability pension if you had an ITP 2 occupational pension when you turned 65.
The amount of your disability pension if you have been ill for a long time
If you were ill several years ago, other rules and amounts may apply for your disability pension. When you first fall ill is what governs the rules that apply in each individual case.
Sickness or activity compensation and work-related injuries
Occupational pension premiums during illness
www.ersattningskollen.se — see the total amount you will receive from your employer, the Social Insurance Office and Alecta if you fall ill