If you are an employer with a collective agreement, your employees can expect both a retirement pension and other important insurances.
Employees working for an employer with a collective agreement are covered by an insurance package. The package includes a retirement pension, a disability pension and a family pension. The occupational pension is paid by the employer.
Every year, the Swedish Pensions Agency, which manages national pensions, distributes the orange-coloured envelope containing information on the national pension. The national pension is financed through social security contributions via taxation. The occupational pension is a supplement to the national pension.
The labour market parties, the Confederation of Swedish Enterprise and PTK (a joint organization of 26 affiliated unions, representing salaried employees in the private sector), have negotiated the ITP agreement for privately employed salaried employees.
ITP is the supplementary pension for the industrial and commercial sectors. The first ever ITP agreement was concluded as early as 1960. More than 1.9 million people are currently covered by the agreement and, every month, over 500,000 of these people receive their pensions from Alecta.
If you would like to know more about other areas on the Swedish labour market covered by agreements, information is available from the Confederation of Swedish Enterprise’s website.
Alecta’s duty is to manage our customers’ capital in the best possible manner.
We handle the insurance agreements and pay the amounts the employees are entitled to. In addition, we believe in providing excellent service, both to the employers who finance the occupational pension and the employees who are covered by it.
Collectum is the name of the administrative company that handles all practical matters related to the ITP agreement. Collectum collects the information we need before an insurance policy can be concluded with us.
For certain parts of the ITP, the employee can make his or her own choice, for example, it is possible to add a repayment cover for ITP 1 and ITPK. This is handled by Collectum, which also invoices the employer and acts as an intermediary regarding the payments to each insurance provider.
An occupational pension with Alecta provides employees with a package including strong insurance cover. For your employees to be covered, you as an employer need to have concluded a collective agreement or a contingent agreement. This is undertaken with Collectum.
By concluding a pension agreement for ITP, you offer your employees an occupational pension which is the standard on the labour market. A comprehensive pension and insurance solution with very low administrative fees.
The ITP agreement consist of two parts:
In the defined contribution pension ITP 1, you as an employer know the cost for every employee. The premium is determined in advance as a certain percentage of the employee’s salary.
Employees born in 1979 or later are covered by the defined contribution pension ITP 1. It is an occupational pension that provides:
Employees born in 1978 or earlier and earning at least 10 income base amounts can agree with you as employer to a full transfer to the defined contribution pension ITP 1.
Companies that have concluded a new agreement regarding ITP can request to apply ITP 1 for all salaried employees, regardless of their year of birth. The request can be made to Collectum.
Each month, you as an employer pay premiums to the employees’ occupational pensions. The occupational pension is, nevertheless, often unknown to the employee. It is, therefore, important to emphasise the value of the occupation pension which provides:
Employees born in 1978 or earlier are covered by the defined benefit pension ITP 2, which guarantees a certain defined pension at retirement. You can read more about ITP 2 and the various new possibilities which have been added to the insurance in recent years here: