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Salaried employees

Salaried employees. Illness / retirement pension / death ITP 1 & 2. ITP - Supplementary p ension for salaried employees in industry and commerce. Companies bound by collective agreements have to implement ITP 1, after approval ( Collectum ), for all salaried employees. The ITP Plan.

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Salaried employees

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  1. Salariedemployees Illness / retirement pension / death ITP 1 & 2 ITP

  2. ITP -Supplementary pension for salaried employees in industryand commerce Companies bound by collective agreements have to implement ITP 1, after approval (Collectum), for all salaried employees ITP

  3. The ITP Plan ITP

  4. Pension commitment ITP 2 ITP 1 and ITPK ITP

  5. Whendoes ITP apply? Post-employment cover 3 months ITP

  6. Sickness- salary < 7,5 pba 7,5 pba salary 10% collectively agreed sick pay 10% ITPdays 91 - 360 15% ITP 80% sick pay 80% sickness benefit 75% sickness benefit 64% sickness compen-sation 1 14 90 65 years 365 The employer submits a notification of illness after 90 days of illness ITP

  7. Sickness- salary > 7,5 pba 30 iba 32,5% ITP 20 iba 90% collectivelyagreed sick pay 80% sick pay salary 65% ITP 7,5 pba 1 14 90 65 years The employer submits a report after 90 days of illness ITP

  8. Sickness The employer submits a report after 90 days of illness 30 iba 32,5% ITP 90% collectivelyagreed sick pay 20 iba 80% sick pay 65% ITP 7,5 pba salary 10% collectively agreed sick pay 10% ITPdays91-360 15% ITP 80% sickness benefit 80% sick pay 75% sickness benefit 64% sickness compen-sation 14 65 years 1 365 90 (max. 550 days) ITP

  9. Waiverof premium insurance Waiver of premium from achieved qualifying period of 90 days Waiver of premium from day 15 ITP

  10. Waiver of premium insurance - sickness Waiver of premium from achieved qualifying period of 90 days Waiver of premium from day 15 ITP

  11. Waiver of premium insurance - parental leave ITP

  12. Pensionablesalary- ITP 1 Special rulesapply in the event of sickness ITP

  13. SALARY 30 % 4,5 % Retirement pension - ITP 1 65 years 55 25 Premium SEK 35,563/month 7,5 iba • Lifelong or temporary pension • Full or partial The employer can pay supplementary premiums ITP

  14. Premium - ITP 1 30,803% 7,5 iba is equivalent to SEK 35,563/month 4,638% • The salary is reported monthly • Retroactive salary payments become pensionable in the month they are paid out ITP

  15. Cost, ITP 1- example SEK 50,000/month *) salaryupto SEK 27 750/month Total SEK 6,096 approx. 12% of salary ITP

  16. Active choice - ITP 1 ITP

  17. Comparison ITP

  18. Choice offund manager - ITP 1 At least 50% Max. 50% No active choice Traditional insurance with Alecta ITP

  19. Survivors’ cover - ITP 1 Beneficiaries spouse partner/cohabitant child(ren) ITP

  20. Family cover -examplecost - 1 pba * ceases at the age of 70 ITP

  21. Family cover - exampleaged 45 ITP

  22. No active choice - ITP 1 Alecta manages the fund ITP

  23. Summary- ITP 1 ITP

  24. Overview - ITP 1 ITP 1 Statutory pension Health insurance age 55 age 65 age 18 age 25 Defined premium pension Waiver of premium Early drawing ITP

  25. Period of service - ITP 2 360 months 28 years 65 years Possible co-ordination of another occupational pension for persons born prior to 1952 ITP

  26. Pensionablesalary- ITP 2 In the event of pay rises within five years of retirement age, special rules apply The employer can report the unreduced salary in the event of - waiving of salary for a benefit - partial retirement ITP

  27. Salary cap- ITP 2 ITP

  28. Retirement pension - ITP 2 30 iba SEK 1,707,000/year 32,5 % 20 iba SEK 1,138,000/year age 55 at the earliest lifelong/temporary full or partial 65 % SEK 426,750/year 7,5 iba 10 % ITP

  29. ITPK -supplementaryretirement pension 2% Premium Max. 30 iba • Defined premiums • Temporary or lifelong The employer can pay supplementary premiums ITP

  30. Supplementary premiums - ITP 1 and ITPK Collectum levies an administration charge on premiums paid in ITP

  31. Active choice - ITPK ITP

  32. Comparison ITP

  33. Choice offund manager- ITPK No active choice Traditionalinsurancewith Alecta ITP

  34. Survivors’ cover - ITPK Beneficiaries Spouse Partner/cohabitant Child(ren) ITP

  35. Family cover - exampleaged 45 ITP

  36. No activechoice - ITPK Alecta manages the fund ITP

  37. Family pension - ITP 2 30 iba SEK 1,707,000/year Beneficiaries spouse, children 20 yearsLifelongpension 16,25 % 20 iba SEK 1,138,000/year 32,5 % Potential to abstain from future premiums Reinforce ITPK SEK 426,750/year 7,5 iba - ITP

  38. Final payment- ITP 2 A salaried employee who leaves his job no earlier than the month after his 62nd birthday, in order to retire, has the ITP and ITPK premiums paid by the insurance until his 65th birthday ITP

  39. Summary- ITP 2 Defined premiums Definedbenefits Disability pension sickness benefitsickness compensation Retirem. pension Family pension ITPK 30 iba 32,5% 32,5% 16,25% 32,5% 20 iba 2 % ofsalary 65% 65% 65% 32,5% 7,5 (333 000) 10%* (426 750) - (333 000) 15% (426 750) 10% * days 91 - 360 Final payment 62 years ITP

  40. Pension - ITP 2 Defined premiums Definedbenefits Retirem. pension • Family • pension ITPK 30 iba 32,5% 16,25% 20 iba 2 % ofsalary 65% 32,5% 7,5 iba 10% - Final payment 62 years ITP

  41. Alternative ITP - ITP 2 A salaried employee with a salary above 10 iba(SEK 569,000 in 2014)can, by agreement with the employer, choose • Alternative ITP (released premium, premium ladder, etc.) • ITP 1 ITP

  42. Changes -ITP 2 • Family Cover (2007)- increased number of base amounts and payment period - familycover • Retirement Pension (2007) - temporary or lifelong • FamilyPension (2008) - possibilitytoreinforce ITPK • CoordinationRegulations (2009) - abolished for those born in 1952 and later • SalaryCap (2010) - follows changes in the income base amount as per table • Retirement Pension (2011) - drawfully or partially • Supplementary Premiums (2011) - toITPK ITP

  43. Summary- ITP 2 ITP

  44. Overview- ITP 2 ITPK ITP 10% , 65% , 32,5% Health insurance Statutory pension - - - age 28 age 55 age 62 age 65 ITP - retirement pension ITPK ITP - family pension Earlydrawing Final payment ITP

  45. The cost- based on ITP

  46. Premiums - ITP 2 * incl. final payment of ITP and ITPK ITP

  47. Premium maximisation- ITP 2 • The premium for retirement pension is max. • - 47.0% of salary portions > 7.5 iba – 30 iba • - 5.7% of salary portions up to 7.5 iba 7,5 iba maximised premium 5,8% Missing premium Individual premium ITP

  48. Premiums -salariedemployees * Health and waiver of premium insurance included ** 0,70% for local collective agreement companies ITP

  49. Maximum cost- ITP 2 * premium added family pension ITP

  50. Fundedsystem - ITP 2 Premiums are paid until retirement age, which mustbe sufficient to cover anticipated pension payments On new admission 28 65 years On salaryrise 28 40 50 60 65 years Paid-up policy Termination When the payment of premiums ceases 28 40 50 65 years ITP

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