Law and agreements
Overview
1
2016-01
Overview
PRIVATE
AGREEMENTS
LAW
2
2016-01
Overview
What is the employee covered by?
WAGE EARNERS
SALARIED
EMPLOYEES
Fora
Collectum
Work injury insurance
Illness / retirement pension
TFA
The ITP plan
Illness
PRIVATE
Death
AGREEMENTS
(in Alecta or another eligible company)
TGL
AGS
Retirement pension
SAF-LO Collective Pension
LAW
Fora
Death
TGL
Work injury
TFA
Work shortage
AGB/TSL
Work shortage
AGE/TRR
Parental allowance
supplement
FPT
3
2016-01
Overview
Base amounts
Price base amounts (pba)
44 300
SEK 333
250
1960
1990
2001
2010
2015
4 200
29 700
36 900
42 400
44 500
Income base amounts (iba)
4
SEK
SEK 59
300
SEK 444
750
1960
1990
2001
2010
2015
-
-
37 700
51 100
58 100
2016-01
Overview
Income ceiling
30 iba
ITP 1
SAF-LO Collective Pension
Sick pay according to law and agreement
TFA
ITP 2
10 iba
SEK 1 779 000/year
SEK 593 000/year
10-fold earner/Alternative ITP
10 pba
SEK 443 000/year
Parental benefit
7,5 iba
SEK 444 750/year
Statutory pension
7,5 pba
Sickness benefit/sickness compensation
Work injury insurance
Temporary parental allowance
5
2016-01
Overview
SEK 333 250/year
Employer’s contribution
Retirement pension
10,21
Health insurance
4,85
Parental insurance
2,60
Survivors’ pension
1,17
Survivors’ pension
0,30
Labour market contribution
2,64
General employment tax
9,65
12,29
19,13
31,42%
6
2016-01
Overview
Employer’s contribution - deviation
Born
Period
Percentage
1937 and earlier
1/1 – 31/12
6,15 %
1938 - 1950
1/1 – 31/12
16,36 %
1991 and later
1/1 – 31/5
25,46%
New Start jobs/Special New Start jobs
- compensation for employer's contribution to employer
www.arbetsformedlingen.se
7
2016-01
Overview
Special payroll tax
24,26%
of the pension expenses
in the company
8
2016-01
Overview
Premiums - wage earners
Salary ≤ SEK 444 750/year
%
Salary > SEK 444 750/year
%
0,30
-
0
-
TFA
0,01
0,01
TGL
0
-
FPT
0
Career readjustment insurance*
AGS
SAF-LO Collective Pension**
- pension premium
- waiver of premium
4,50
0
30
0
Total
4,81
30,01
Funded by surplus funds
- 0,25
Total premium invoiced
4,56
* 0,60% for local collective agreement companies
** The premium is paid from the month in which the wage earner turns 25.
9
2016-01
Overview
30,01
Premiums - salaried employees
ITP 1
ITP 2
≤ SEK 37 063/month
> SEK 37 063/month
4,67
31,01
ITP
0,15
0
TGL
TFA
0,03
0,03
TFA
TRR**
0,3
0,3
TRR**
ITP*
TGL
Total %
approx.
approx.
5,15
31,34
* Health and waiver of premium insurance included
** 0,70% for local collective agreement companies
10 2016-01
Overview
max 30 iba
Total %
13,4
approx.
0,15
0,03
0,3
approx. 13,9
Maximum cost - ITP 2
< 7,5 pba
7,5 pba-7,5 iba
7,5 iba-30 iba
0,068
0,373
0,373
Waiver of premium
0,1
0,1
0,638
Retirement pension
6,2 (max)
6,2(max)
49,5 (max)
Health insurance
ITPK
2
2
2
Family pension
-
-
*
Compensation
0,6
0,6
0,6
8,968
9,273
Total %
* 53,111
* premium added
family pension
11 2016-01
Overview
Organisation - wage earners
Fora
SAF-LO
Collective Pension
AMF
Insur.
company Company
Career readjustment
support
AGB
TSL
TGL
AGS
TFA
AFA Insurance
Career readjustment support and AGB are part of the career readjustment
insurance that applies to companies with collective agreements
12 2016-01
Overview
FPT
Organisation - salaried employees
Fora
Collectum
ITP 2
Retirem.
pension
Family
pension
Company
PRI
Pensionsgaranti
13 2016-01
ITP 1
Risk
Alecta
ITPK
TGL
TFA
Alecta
AFA
Insurance
Retirem. Disability Premium
pension pension waiver
Insurance companies
Alecta
Bliwa
Folksam
LF
Movestic
SEB Trygg Liv
SEB Trygg Liv Fond
Skandia Liv
Company
Overview
Career
readjustment
agreements
TRR
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’s
spouse who is active in the
company
14 2016-01
Overview
Obligation to take out insurance
Company
Local collective
agreement
with e.g. IF Metall
Member of Confederation
of Swedish Enterprise
Union agreement
e.g.
MAF - 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
15 2016-01
e.g.
MAF - Unionen
Company
Local collective
agreement
with e.g. Unionen
Insurance agreements must be taken out
for all employees
• AFA insurance, Career readjustment insur.
and SAF-LO Collective Pension for wage
earners
• ITP - TGL - TFA - TRR for salaried employees
Overview
Guarantee
Collective insurance schemes guarantee all employees
covered by “recognised” collective agreements
the right to compensation even if the employer has
failed to maintain insurance cover.
Retroactive premiums for the employer
16 2016-01
Overview
Financing systems
Pay-as-you-go system
Income pension
Supplementary pension
Charges
Payments
retirement age
Funded system
ITP/SAF-LO Collective Pension
Premium pension
17 2016-01
fund
Charges
Payments
fund
retirement age
Overview
Salary terms - pensions
Retirement pension
SAF-LO Collective Pension
• Work income
• Pensionable salary
- gross salary per year
• Other remuneration
- sickness benefit
- parental benefit
- UIF
- taxable benefits
• At least SEK 18 739
Max. 7,5 iba
No ceiling
ITP 2
• 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. 30 iba
ITP 1
• Pensionable salary
- gross salary paid in cash per month
No ceiling
18 2016-01
Overview
Salary terms - sickness
Sick pay
Sickness benefit
Sickness
compensation
• Salary
• Salary calculated
12 months ahead
• Gross income (PGI)
(SGI x 0,97)
• Employment benefits
according to collective
agreement
19 2016-01
Overview
WWW
fora.se
collectum.se
afaforsakring.se
alecta.se
tsl.se
trr.se
finfa.se
20 2016-01
Overview
Law
Incident
Compensation
Illness
sick pay
sickness benefit
activity and sickness compensation
Work injury
work injury insurance
Retirement pension
income / premium pension
supplementary pension
guarantee pension
Survivors’ pension
adjustment pension
extended adjustment pension
child pension
Unemployment
unemployment insurance
- basic amount
- income-related
21 2016-01
Overview
Wage earners - agreements
Incident
Precondition
Sickness
AGS
Work injury
TFA
Retirement pension
Death
SAF-LO Collective Pension
Death
TGL
Work shortage
Career readjustment insurance
Parental leave
FPT
22 2016-01
Overview
Salaried employees
- agreements
Incident
Precondition
Sickness
Retirement pension
Death
ITP
Work injury
TFA
Death
TGL
Work shortage
Readjustment agreements
23 2016-01
Overview
Summary - Wage Earners
SAF-LO collective pension (temp/lifelong)
Defined premiums
ASL
Early drawing
age 25
age 55
AGS
Working hours as well as travel to and from work
TFA
Phasing out
TGL
age 55
Career
insur.
Career readjustment support
AGB
age 40
FPT
24 2016-01
Overview
Statutory pension
age 65
To consider – wage earners
Incident
New employees
Information
•
Report all newly employed wage earners to Fora
• Which insurance schemes are included in employment
• Pension alternatives according to information from FORA
• Notify illness to FK in the case of illness > 14 days
• Notify certification of employment status to AFA Insurance
Illness
• In the case of sickness compensation, inform as to which insurance applies until reaching
the age of 65
Work injury
Parental leave
25 2016-01
• Obligation to notify Försäkringskassan FK
• Certification of employment status to AFA Insurance
• Certification of employment status to AFA Insurance
Overview
To consider – wage earners (con’t)
Incident
Death
Work shortage
• Certification of employment status to AFA Insurance
• 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
• 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
Work after the age of 65
65
• Agreement with wage earner on whether Avtalspension SAF-LO will continue after the age of
65
26 2016-01
Overview
Summary - salaried employees ITP 1
ITP (temp / lifelong)
ITP 1
Health insurance
age 18
Early drawing
Defined premiums
age 55
age 25
age 65
Working hours as well as travel to and from work
TFA
Phasing out
TGL
age 55
age 18
TRR
Statutory pension
Career readjustment support
AGE
age 40
27 2016-01
Overview
age 70
Summary - salaried employees ITP 2
ITPK (temp / lifelong)
ITP (temp / lifelong)
ITP 2
Health insurance
age 18
Statutory pension
Benefits/defined premiums
age 28
ITP - retirement pension
ITP - family pension > 7.5 iba
ITPK
age 55
Early
drawing
age 62
Final
payment
age 65
Working hours as well as travel to and from work
TFA
Phasing out
TGL
age 55
age 18
TRR
Career readjustment support
AGE
age 40
28 2016-01
Overview
age 70
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
• Notify Collectum
- all probationary employment from the
age of 18
- for limited employment, report after 3 months
• Report gross salary paid every month
Parental leave
29 2016-01
• See the collective agreement for salaried
empolyees
• Waiver of premium insurance pays the
pension for 13 månader
Overview
• See the collective agreement for salaried
empolyees
• Reccomendation to retain ITP for 11 months
To consider – salaried employees (con’t)
Incident
Information
ITP 1 and ITP 2
• Which insurances are included in empoyment as well as beneficiaries in
Tjänstegrupplivförsäkringen, TGL
• ITP 1 and ITPK-choices according to information from Collectum
Illness
Work injury
Death
30 2016-01
• 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
• Obligation to notify to FK
• Certification of employment situation to AFA Insurance
• Report to Collectum
• Report to TGL company
Overview
To consider – salaried employees (con’t)
Incident
ITP 1 and ITP 2
Work shortage
• Notify Trygghetsrådet, TRR, within 2 years
Redundancy
Pension
• Unsubscride salaried employee ITP/TGL with Collectum and other TGL companies
other than Alecta
•
Each company contacts the employee approx. 3 months before retirement
• 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
Work after the age of 65
the age of 65
• Agreement with wage earner on whether Avtalspension SAF-LO will continue after
the age of 65
31 2016-01
Overview