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Sweden:

More flesh on the bones of SPP’s surplus policy

In a recent announcement, SPP, the insurer to the ITP white collar pension system, revealed further details of its surplus management policy. SEK 12 billion previously allocated for use by SAF and PTK, the parties to the ITP collective agreement will be used as follows:

• SEK 1.8 billion to provide a catching-up increase to some 250,000 pensioners who did not receive a full pension increase in 1992.
• SEK 0.7 billion to provide increases of 8% in supplementary ITPK benefits for some 600,000 people.
• SEK 3.6 billion to be allocated to a contingency fund which can be used for pension increases or other changes.
• SEK 6.0 billion reserved for application by the collective parties as part of the wider negotiation on the future of the ITP arrangements.

Some SEK 46 billion of surplus remains for allocation between companies participating in the system, to be used to reduce future pension costs or other purposes with agreement of local unions. In future, SPP will seek to retain a contingency margin of 15% of liabilities.