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Occupational pension with Alecta

If you are an employer with a collective agreement, your employees can expect both a retirement pension and other important insurances.

The occupational pension is financed by the employer

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.

The occupational pension is a supplement to the national pension

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.

Occupational pension with Alecta

An occupational pension with Alecta provides employees with a package including a strong insurance cover. For your employees to be covered, you as an employer need to have concluded a collective agreement or a contingent agreement. The ITP agreement is signed at Collectum. 

By concluding a pension agreement for ITP, you offer your employees an occupational pension which is standard on the labour market. A comprehensive pension and insurance solution with very low administrative fees.

The ITP agreement consist of two parts:

  • defined contribution pension ITP 1
  • defined benefit pension ITP 2.

ITP 1

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:

  • extra money in retirement pension
  • supplementary compensation in the case of illness
  • a possibility of adding survivor’s protection in the event of death.

OTHERS CAN ALSO BE COVERED BY ITP 1

Employees born in 1978 or earlier who earn 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. 

ITP 2

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:

  • extra money in retirement pension
  • supplementary compensation in the case of illness
  • financial security in the event of death.

DEFINED PENSION OF ITP 2

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:

READ MORE 

Collectum pages

The parties behind the collective ITP agreement

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 Svenskt Näringlivs (Confederation of Swedish Enterprise’s) website.

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Confederation of Swedish Enterprise