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Sweden:
Recent developments
The Board of SPP (the monopoly insurer to the nationwide ITP white collar pension arrangement) has reached an agreement in principle on a policy for managing surplus. The current surplus of 44% - SEK 77 billion - is to be reduced to 15%. To reduce the surplus, SEK 12 billion has been allocated for benefit improvements; the precise method of application is still to be decided. SEK 39 billion will be held by SPP but allocated between the policyholders who have contributed to the surplus. By agreement between unions and employers it will be available to meet certain costs, including regular premium requirements and early retirement restructuring costs. The arrangement will run until 2002 and will then be reviewed.
The Accounting Standards Board has decided that listed companies should adopt IAS19 for reporting pension and other benefit costs in their group accounts. An exposure draft is expected in the autumn, with mandatory compliance in 2001. Meanwhile,a number of Swedish multinationals are considering voluntary implementation of the standard much earlier.
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