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Sweden:
Still no agreement on white collar pensions
Unions for some 650,000 white collar workers have declined the employer federation's latest proposals on revising the key ITP pension arrangements, which put more prominence on defined contribution provision. This follows a protracted process of negotiations between PTK and SAF, the parties to the collective agreement. Reasons cited for turning down the proposals include the proposed level of contributions, and disagreement regarding ill health arrangements and parental leave.
ITP is Sweden's most important occupational pension arrangement for white collar employees, in which most companies of any size participate. The continuing deadlock suggests there will be some slowdown in the hectic pace of pension reform in Sweden, although it would be surprising if this was anything other than temporary. Meanwhile, companies are still faced with a range of key issues on pension provision, including how best to finance ITP pensions, how to utilise any share of surplus allocated by the insurer SPP to the company, and the impact of increasing premiums for partially opted-out higher earners.
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