1

Law and agreements

Overview

Overview

2015-08

2 Overview

LAW

AGREEMENTS

PRIVATE

2015-08

What is the employee covered by?

Overview

LAW

AGREEMENTS

PRIVATE

SALARIED EMPLOYEES

Collectum

Retirement pension SAF-LO Collective Pension

WAGE EARNERS

Fora

Illness AGS

DeathTGL

Work injury insuranceTFA

Work shortageAGB/TSL

Illness / retirement pensionThe ITP plan

Death TGL

(in Alecta or another eligible company)

Work injury TFA

Work shortage AGE/TRR

3

Fora

Parental allowance supplement

FPT

2015-08

Overview

Base amounts

1960 1990 2001 2010 2013

4 200 29 700 36 900 42 400 44 400

4

1960 1990 2001 2010 2013

- - 37 700 51 100 56 900

Income base amounts (iba) SEK 58 100 SEK 435 750

Price base amounts (pba) SEK 44 500 SEK 333 750

2015-08

5 Overview

Income ceiling

Sickness benefit/sickness compensationWork injury insuranceTemporary parental allowance

Statutory pension

7,5 pba

Parental benefit

7,5 iba

10-fold earner/Alternative ITP

10 pba

ITP 2

10 iba

ITP 1SAF-LO Collective PensionSick pay according to law and agreementTFA

30 iba

SEK 581 000/year

SEK 445 000/year

SEK 435 750/year

SEK 333 750/year

SEK 1 743 000/year

2015-08

6 Overview

Employer’s contribution

Labour market contribution 2,64

General employment tax 10,15

12,79

Retirement pension 10,21

Health insurance 4,35

Parental insurance 2,60

Survivors’ pension 1,17

Survivors’ pension 0,30

18,63

31,42%

2015-08

7 Overview

Employer’s contribution - deviation

Born Contribution Percentage1937 and earlier No contribution

1938 - 1949 Retirement pension contribution 10,21%

1990 and later Employer’s contribution 25,46%

New Start jobs/Special New Start jobs - compensation for employer's contribution to employer

www.arbetsformedlingen.se

2015-08

8 Overview

Special payroll tax

24,26%of the pension expenses

in the company

2015-08

9 Overview

Premiums - wage earners

Salary > SEK 435 750/year

%

-

-

0.01

-

30.000.00

30.01

30.01

Salary ≤ SEK 435 750/year %Career readjustment insurance* 0.30

AGS 0.00

TFA 0.01

TGL 0.00

FPT 0,00

SAF-LO Collective Pension**- pension premium- waiver of premium

4.50 0.00

Total 4.81

Funded by surplus funds - 0.70

Total premium invoiced 4.11

* 0.60% for local collective agreement companies** The premium is paid from the month in which the wage earner turns 25.2015-08

10 Overview

max 30 iba

ITP approx. 12,70

TGL approx. 0,20

TFA 0,01

TRR** 0,30

Premiums - salaried employees

≤ SEK 36 313/month > SEK 36 313/month

ITP* 4,64 30,89

TGL 0,20 0,00

TFA 0,01 0,01

TRR** 0,30 0,30

* Health and waiver of premium insurance included** 0,70% for local collective agreement companies

Total % 5,15 31,20 Total % approx.

13,20

ITP 1 ITP 2

2015-08

11 Overview

Maximum cost - ITP 2

< 7,5 pba 7,5 pba-7,5 iba 7,5 iba-30 ibaHealth insurance 0,06 0,32 0,32

Waiver of premium 0,05 0,05 0,39

Retirement pension 5,8 (max) 5,80(max) 46,50 (max)

ITPK 2,00 2,00 2,00

Family pension - - *

Compensation 0,60 0,60 0,65

* premium added family pension

Total % 8,51 8,77 * 49,80

2015-08

Career readjustment support and AGB are part of the career readjustment insurance that applies to companies with collective agreements

Fora

SAF-LOCollective Pension

AMFInsur.

company Company TSL

Career readjustmentsupport AGB TGL AGS TFA

AFA Insurance

Organisation - wage earners

Overview12

FPT

2015-08

13 Overview

Organisation - salaried employees

Collectum Fora

ITP 2

Company Insurance companiesAlecta Alecta

TGL TFACareer

readjustment agreements

ITP 1

Familypension Risk ITPK

Retirem.pension

Disabilitypension

Premiumwaiver

Retirem.pension

Alecta

BliwaFolksam

LFMovestic

SEB Trygg LivSEB Trygg Liv Fond

Skandia Liv

AFAInsurance

TRR

PRIPensionsgaranti

Company

2015-08

14 Overview

Who are “self-employed persons”?

Corporate form

According to the beneficiary clause

EF The owner himself

HB All co-owners

AB Self-employed person himself or together with spouse, children and/or parents owns at least 1/3 of the shares

and the self-employed person’sspouse who is active in the

company

2015-08

15 Overview

Obligation to take out insurance

Company

Local collective agreement

with e.g. IF Metall

Insurance agreements with Fora must be taken

out for all employees• AFA insurance, Career readjustment insur. and

SAF-LO Collective Pension for wage earners• TFA for salaried employees

Insurance agreements must be taken outfor all employees• AFA insurance, Career readjustment insur.

and SAF-LO Collective Pension for wageearners

• ITP - TGL - TFA - TRR for salaried employees

Member of Confederationof Swedish Enterprise

Union agreemente.g. e.g.MAF - IF Metall MAF -

Unionen

Company

Local collective agreement

with e.g. Unionen

2015-08

16 Overview

Guarantee

Collective insurance schemes guarantee all employeescovered by “recognised” collective agreements

the right to compensation even if the employer has

failed to maintain insurance cover.

Retroactive premiums for the employer

2015-08

17 Overview

Financing systems

Funded systemITP/SAF-LO Collective PensionPremium pension

Charges

Payments retirement age

fund fund

Charges

Payments retirement age

Pay-as-you-go systemIncome pensionSupplementary pension

2015-08

18 Overview

Salary terms - pensions

Retirement pension SAF-LO Collective Pension ITP 2

• Work income• Other remuneration

- sickness benefit- parental benefit- UIF- taxable benefits

• At least SEK 18 823

• Pensionable salary- gross salary per year

• Pensionable salary- monthly salary x 12,2- commission, bonus, etc.- shift allowance, on-duty remuneration- travel time remuneration- holiday pay on variable salary portions- entirely free board and lodging

Max. 7,5 iba No ceiling Max. 30 iba

ITP 1

• Pensionable salary- gross salary paid in cash per month

No ceiling

2015-08

19 Overview

Salary terms - sickness

Sick pay Sickness benefit Sickness compensation

• Salary • Salary calculated 12 months ahead

(SGI x 0,97)

• Gross income (PGI)

• Employment benefitsaccording to collectiveagreement

2015-08

20 Overview

fora.se

afaforsakring.se

tsl.se

finfa.se

collectum.se

alecta.se

trr.se

WWW

2015-08

21 Overview

Law

Incident Compensation Illness sick pay

sickness benefitactivity and sickness compensation

Work injury work injury insurance

Retirement pension income / premium pension supplementary pension guarantee pension

Survivors’ pension adjustment pensionextended adjustment pensionchild pension

Unemployment unemployment insurance- basic amount- income-related

2015-08

22 Overview

Wage earners - agreements

Incident PreconditionSickness AGS

Work injury TFA

Retirement pensionDeath

SAF-LO Collective Pension

Death TGL

Work shortage Career readjustment insurance

Parental leave FPT

2015-08

23 Overview

Salaried employees - agreements

Incident PreconditionSicknessRetirement pensionDeath

ITP

Work injury TFA

Death TGL

Work shortage Readjustment agreements

2015-08

Overview

Summary - Wage Earners

age 55

Early drawing

age 55

Phasing out

ASL

age 25 age 65

SAF-LO collective pension (temp/lifelong)

Statutory pension Defined premiums

AGS

TFA

TGL

Working hours as well as travel to and from work

Careerinsur.

Career readjustment support

age 40

AGB

24

FPT

2015-08

To consider – wage earners

Incident

New employees • Report all newly employed wage earners to Fora

Information • Which insurance schemes are included in employment

• Pension alternatives according to information from FORA

Illness

• Notify illness to FK in the case of illness > 14 days

• Notify certification of employment status to AFA Insurance

• In the case of sickness compensation, inform as to which insurance applies until reaching

the age of 65

Work injury • Obligation to notify Försäkringskassan FK

• Certification of employment status to AFA Insurance

Parental leave • Certification of employment status to AFA Insurance

2015-0825 Overview

To consider – wage earners (con’t)

Incident

Death • Certification of employment status to AFA Insurance

Work shortage • Certify employment status and give reason for personnel decreases to AFA Insurance

• Notification to be done within 2 years

Redundancy • Report to FORA that emloyment is terminated at the annual reporting time

Pension • Each insurance company contacts the employee 3 months before retirement

Work after the age of 65

• Trygghetsförsäkring vid arbetsskada, TFA, remains in effect but no premiums are paid after the age of 65

• Tjänstegrupplivförsäkring, TGL, continued in effect but no premiums are paid after the age of

65

• Agreement with wage earner on whether Avtalspension SAF-LO will continue after the age

of 65

2015-0826 Overview

Overview

Summary - salaried employees ITP 1

Health insurance

age 18 age 25 age 55 age 65

ITP (temp / lifelong)

Defined premiums Early drawingITP 1

TGL

TFA

age 18 age 55

Phasing out

Working hours as well as travel to and from work

age 70

Statutory pension

Career readjustment support

age 40

AGETRR

27 2015-08

Overview

Summary - salaried employees ITP 2

TGLage 70

age 62

Statutory pension

Phasing out

Health insurance

age 18 age 28 age 55 age 65

ITPK (temp / lifelong)

ITP - retirement pensionITP - family pension > 7.5 ibaITPK

Early drawing

ITP 2

TFA

age 18 age 55

Working hours as well as travel to and from work

Finalpayment

ITP (temp / lifelong)

Benefits/defined premiums

Career readjustment support

age 40

AGETRR

28 2015-08

To consider – salaried employees

Incident ITP 1 ITP 2

New employees

• Notify Collectum - All salaried employees over the age of 18 regardless of emplyment status

• Report gross salary paid every month

• Notify Collectum - all probationary employment from the age of 18 - for limited employment, report after 3 months

Parental leave

• See the collective agreement for salaried empolyees

• Waiver of premium insurance pays the pension for 13 månader

• See the collective agreement for salaried empolyees

• Reccomendation to retain ITP for 11 months

2015-0829 Overview

To consider – salaried employees (con’t)

Incident ITP 1 and ITP 2

Information

• Which insurances are included in empoyment as well as beneficiaries in Tjänstegrupplivförsäkringen, TGL

• ITP 1 and ITPK-choices according to information from Collectum

Illness

• Notify illness to FK in the case of illness > 14 days• Notify illness to Collectum in the case of sick leave exceeding 90 days• In the case of sickness compensation - inform that the insurance applies until reaching the

age of 65

Work injury• Obligation to notify to FK• Certification of employment situation to AFA Insurance

Death • Report to Collectum• Report to TGL company

2015-0830 Overview

To consider – salaried employees (con’t)

Incident ITP 1 and ITP 2

Work shortage • Notify Trygghetsrådet, TRR, within 2 years

Redundancy • Unsubscride salaried employee ITP/TGL with Collectum and other TGL companies

other than Alecta

Pension • Each company contacts the employee approx. 3 months before retirement

Work after the age of 65

• Trygghetsförsäkring vid arbetsskada, TFA, remains in effect but no premiums are paid after the age of 65

• Tjänstegrupplivförsäkring, TGL, continued in effect but no premiums are paid after

the age of 65

• Agreement with wage earner on whether Avtalspension SAF-LO will continue after

the age of 65

2015-0831 Overview