ITP 2 Family pension

ITP 2 Family pension is included as part of your ITP 2 Occupational pension at Alecta if your monthly salary is
SEK 49,549 or higher. The pension is paid to your family monthly after you die.

How ITP 2 Family pension works

Your salary and the length of time you have worked are decisive to the amount of benefit to be paid.
Alecta pays out your family pension benefit.
You can choose to opt out of future payments into your family pension and pay the corresponding amount to your ITPK instead.
You can begin earning money towards your ITP 2 Family pension from age 28.

Who receives the money?

Benefits are paid to your spouse or registered partner (not your cohabitant).
If you have children under 20, they may also benefit from your family pension.

If you get divorced, you can choose to have your divorced spouse or registered partner remain the beneficiary of part of your survivor's pension. You need to notify us within one year of the divorce being finalised. Contact us and we will help you.

The amount paid out

ITP 2 Family pension is a defined benefit pension, and is calculated at a basic benefit level taking your salary into account.

Payment of your ITP 2 Family pension benefit

Your annual income	ITP 2 Family pension
Salary between SEK 604,500 and SEK 1,612,000	32,5%
Salary between SEK 1,612,000 and SEK 2,418,000	16,25%

Your ITP 2 Family pension benefit is lower if you have not paid into ITP 2, or certain other occupational pensions, for at least 30 years (360 months). If you expect to work for less than 30 years, the amount is lower.

How the amount is allocated

Your spouse or registered partner receives the full amount if there are no children under age 20.
If there are children under 20, your spouse or registered partner receives 75 per cent of the basic benefit level, while the children’s share depends on how many children there are.

Allocation

Beneficiary	Percentage of basic benefit level
Spouse or registered partner	75%
One child	55%
Two children	75% which is divided equally between the children
Three children	85% which is divided equally between the children
If there are more than three children in the family the percentage increases by 10 per cent for each child.

If the beneficiaries are children under the age of 20 (when there is no spouse or registered partner), the children will receive the pension benefits according to a different distribution than stated above. Please feel free to contact us for more information.

Children over the age of 20 may also receive family pension benefits if they are unable to work, for example due to a disability, and receive sickness or activity compensation from the Swedish Social Insurance Agency (Försäkringskassan).

How much does ITP Family pension cost?

ITP 2 Family pension is paid for by your employer and does not affect the size of your own retirement pension. In some cases, you are able to opt out of the family pension, resulting in a higher retirement pension instead.

Conditions for ITP 2 Family pension

In order for ITP 2 Family pension benefits to be paid to a spouse or registered partner, the following applies:

If you were aged 60 or over when you married, you must have been married for at least 5 years, or have children together when you die.
If you were on long-term sick leave and working less than 50 per cent when you married, you must have been married for at least 5 years, or have children together.
If your survivor or spouse remarries before the age of 60, the benefit payments will cease.

In order for ITP 2 Family pension benefits to be paid to children, the following applies:

The children must be under age 20. (Benefits are paid up to and including the month in which the child turns 20).
ITP 2 Family pension benefits may also be paid to children older than 20 if they are unable to work, for example due to a disability, and receive sickness or activity compensation from the Swedish Social Insurance Agency.