Funding policy for defined benefit insurance commitment
In defined benefit pension, the collective funding represents the difference between our assets and the insurance commitments to policyholders and insured individuals. The funding ratio is Alecta’s assets as a percentage of the insurance commitments.
The funding ratio is normally allowed to vary between 125 and 170 percent. The following limits apply to the allocation of surpluses:
- 125 percent – lower limit for upward adjustment of pensions in payment
- 135 percent – lower limit for upward adjustment of paid-up policies
- 150 percent – lower limit for reductions in policyholder’s premiums
- 170 percent – lower limit for other refunds to policyholders
