Your occupational pension with Alecta

Transcription

1 1311: Illustration Agnes Miski Török Foto Björn Keller Produktion Alecta d e f i n e d b e n e f i t p e n s i o n, i t p 2 Your occupational pension with Alecta The information in this brochure is intended for people who have a defined benefit pension with Alecta.

2 Contents Your occupational pension 3 Retirement pension 4 If you are sick for a long time 6 Your occupational pension Your occupational pension with Alecta is paid for by your employer and is a benefit that provides you with financial security in several ways both during and after your working life. What is paid when you die? 8 Other information 12 Retirement pension and disability pension When you retire you will receive a retirement pension according to ITP (supplementary pensions for salaried employees). Your employer pays the premiums and Alecta manages them and pays the pension (more on page 4). ITP also includes a disability pension that provides you with compensation if you are sick for a long period (more in page 6). Pension from several sources You will also receive pension from other sources. In addition to your occupational pension you will receive a national pension from the Social Insurance Office. And if you have saved in a private pension insurance, you will also receive a pension from the insurance company or companies with you have saved. Private pension If you have any questions, please contact us. Alecta pensionsförsäkring, ömsesidigt Telephone Fax SE Stockholm Alecta has been managing occupational pensions since We are on the side of the customers and our single focus is to offer financial security during and after working life. We do this by achieving returns that outperform the industry average as well as having the lowest costs. Protection for your nearest and dearest ITP family pension provides protection for your nearest and dearest in the event of your death (more on page 8). You can choose to add extra surviviors cover. With survivors cover you can arrange for your pension to be paid to your nearest and dearest if you should die (more on page 8). Occupational pension National pension 2 3

3 Retirement pension Your occupational pension with Alecta is a defined benefit pension. This means that you are guaranteed a specific percentage of your final salary as pension. Your employer pays premiums that will entitle you to a retirement pension from Alecta. Your retirement pension consists of defined benefit ITP 2, as well as defined contribution ITPK (read more about this under What is ITPK? ). Your salary is important How much you receive depends on how much you earn when you stop working. See table below. Retirement pension National pension 32,5 % 65 % 10 % Salary limits 1,563,000 (30 iba) 1 042,000 kr (20 iba) 390,750 kr (7,5 iba) Period of service is also relevant In order to receive a full occupational pension when you retire, you must have a period of service of 360 months, 30 years. When we calculate the period of service, we count the time you have had an occupational pension with Alecta or another type of occupational pension. To enable us to calculate this accurately, it is important that you tell us about any previous employment. Example Erik has an annual salary of SEK 305,000 The ITP pension is 10% x 305,000 = SEK 30,500 or SEK 2,542 per month If his salary is raised to SEK 405,000. ITP will then be 10 % x 390, % x (405, ,750) = SEK 48,336 or SEK 4,028 per month. Requirement: Complete period of service. Swedish national pension is in addition to this amount. Have you thought of reducing your working hours towards the end of your working life? Taking a salary cut does not necessarily mean you will lose that much in pension. Contact us for further details. What is ITPK? ITPK is a complementary retirement pension and 2 per cent of your salary is allocated to your ITPK. You can choose who should manage your money and how this should be done. The company that administers the ITPK choice is called Collectum. They will send you information about the choice itself. How much pension you finally receive depends on how your employer has paid in, how you chose to invest your premium and on the charges paid. You are always free to change your choice. Alecta Optimal Pension You can choose to invest your ITPK money in Alecta Optimal Pension that combines the best of traditional management and funds. You will receive a guaranteed pension with the possibility of a high return. You will also pay the lowest charges in the industry, just 0.10 per cent of the capital. And the cost for managing this money is currently only 0.03 per cent. Retirement Pension is paid from the age of 65 and for life. The earliest you can start to withdraw your pension is from 55. If you do this, your retirement pension will not be as high as if you had worked until normal retirement age. If you stop work and retire in the month after your 62nd birthday, the premiums can be paid up to your 65th birthday as if you had continued to work with the same salary. This possibility is included in the agreement, and the premiums will be paid by collective funds at Alecta. You can change the payment period You can choose how you would like to have your pension paid. The shortest period is 5 years for ITP and 2 years for ITPK. Once your pension payments start, you cannot change the payment period. You can divide your pension into different parts with different payment periods. You can, for example, reduce your working hours and cover some of the loss of income by taking out some of your pension. 4 5

4 If you are sick for a long time If you have an occupational pension with Alecta you are covered by disability pension from the age of 18. If you are sick for a long period and receive a disability pension, your retirement pension will still continue to build up exactly in the same way as when you were working. Sick for more than 90 days When you have been sick for more than 90 days, in addition to sickness benefit from the social insurance office you will receive a disability pension through your occupational pension with Alecta. The figures in the table show what you will receive for the first year on the sick list. Monthly From social Disability pension salary, SEK insurance office from Alecta 15,000 11,490 (383 kr/dag) 1,525 20,000 15,300 (510 kr/dag) 2,033 25,000 19,140 (638 kr/dag 2,542 35,000 20,460 (682 kr/dag) 8,417 45,000 20,460 (682 kr/dag) 15,025 These examples show how much you will receive each month compared to your normal salary. What happens when you have been sick for a whole year? Starting on day 361 on the sick list, compensation from Alecta will cease for the salary component below 7.5 price base amounts, i.e. SEK 321,000 (2011). After 365 days on the sick list, the amount you receive from the Swedish Social Insurance Agency will also be reduced. Period with sickness or activity compensation If you are receiving sickness or activity compensation from the Swedish social insurance office, you are entitled to a disability pension from Alecta. The table shows how much will be paid out each month from Alecta. How much the social insurance office pays in sickness compensation is calculated individually for you. Contact them, if this applies to you. Monthly salary, SEK Disability pension from Alecta 15,000 2,288 20,000 3,050 25,000 3,813 35,000 9,754 45,000 16,363 Important to know Compensation from Alecta decreases if you receive a work injury annuity from the social insurance office. It is important to be aware of this. Your salary affects your compensation: Base amount * Annual salary 2011 ITP disability pension as % of annual ITP disability pension SEK salary after 90-day qualifying period in the event of sickness or activity com- Sick days From sick day 361 pensation pba Up to 321, pba 20 iba 321,000 1,042, iba 1,042,000 1,533, * Read more about base amounts on page 12. You receive compensation from different sources when you are sick for a long time. Sick days Type of compensation? Who pays? Day 1 is a qualifying day None Day 2-14 Sick pay Employer Day Sickness benefit Social insurance office Sick pay Employer Day Sickness benefit Social insurance office ITP disability pension Alecta Day 361- Sickness benefit Social insurance office ITP disability pension Alecta If you are receiving Sickness or activity compensation Social insurance office ITP disability pension Alecta 6 7

5 What is paid when you die? Financial security is not only about getting a good pension. Making sure that your nearest and dearest receive compensation if you should die is also security. Your employer has thought of this, so your employment also provides protection for your family. Family pension If you have an annual salary of more than SEK 390,750 or SEK 32,029 per month, your occupational pension includes a life-long pension for your surviving family. Please note that this does not apply if you have made an alternative ITP choice. In the event of your death, it is not the retirement pension that is paid, but a separate family pension. If you have a family pension you can now waive your future payments Salary limits for receiving a family pension and how much it will be Readjustment pension 16,25 % 32,5 % Salary limits SEK 1,563,000 (30 iba) SEK 1,042,000 (20 iba) SEK 390,750 (7,5 iba) towards the family pension and instead strengthen your ITPK. To find out if this is a good idea for you, you should first see what other survivors cover you have such as family cover and repayment cover. You can add extra cover When you make your ITPK choice you can add extra cover for your nearest and dearest in two ways. You can choose to add a repayment cover to your ITPK and you can choose to take out family cover with Alecta. Example Hanna With a salary below 7.5 iba there is no compensation from ITP. If Hanna had had a salary of SEK 420,000, ITP would be 32.5 % x (420, ,750) = SEK 9,506 or SEK 792 per month. A readjustment pension from the social insurance office may also be paid. Family cover Family cover gives your survivors a specific amount over a specific period if you should die before you retire. You can choose between 1, 2, 3 or 4 price base amounts to be paid over 5, 10, 15 or 20 years. Payments cease on the date you would have been 70 at the latest. The cost of this cover is deducted from your ITPK premiums and increases with age. Family cover is always taken out with Alecta. N.B. If you chose ITPK family cover before 1 April 2008, you have a different family cover. In order to be eligible for more amounts and more payment periods (i.e. family cover as described above), you must make another choice. Otherwise you will keep the family cover you already have. Repayment cover If you have chosen to add repayment cover to your ITPK, your survivors will receive the ITPK pension that you earned prior to your death. If you choose repayment cover, your own pension will be slightly lower. Review your cover By visiting Collectum s website you can read more about choosing not to have family cover and about cover for survivors, what they cost and when it is a good idea to acquire or remove cover. Occupational group life insurance, TGL Employees who have an occupational pension with Alecta also have an occupational group life insurance, TGL, which is paid out in a lump sum if you should die before reaching retirement. The amount paid depends on your age at the time of death. If the insured at time of Number Basic death has reached the age of of pba* amount** 18 but less than , but less than , but less than , but less than , but less than , but less than , but less than , but less than , but less than , but less than , but less than ,800 If a child at the time of Number of Child dhe death of the insured pba* supplement not yet , but less than , but less than ,800 * pba = price base amount ** If you work 8 15 hours per week, the insurance applies with half this amount. 8 9

6 The kind of money we at Alecta are involved with is not the only kind there has ever been. The old Sumerians are said to have used beer to pay their taxes. This undeniably gives the expression beer tax a new meaning. Who will receive the money? A beneficiary provision decides who receives compensation in the event of your death. If nothing else has been written in a special beneficiary provision, the compensation will be distributed to your surviving family in accordance with the general standard beneficiary provision. See table below. With the family pension you cannot decide who should receive the money. On the other hand, you can decide who should receive the lump-sum payment from occupational group life insurance, TGL. If you have a cohabitant, you can decide that the money from your TGL is paid to your cohabitant by completing a special beneficiary provision. The form you need for this is available from your employer or at collectum.se. Family pension Repayment cover Family cover Occupational group life insurance to spouse, registered partner (not cohabitant) and children below the age of 20 in the first instance to spouse, registered partner or cohabitant in the second instance to child(ren) regardless of age. in the first instance to spouse or registered partner (not cohabitant) in the second instance to children or grandchildren thereafter to parents

7 Other information Different base amounts Base amounts are used, among other things, to calculate and index-link pensions. In your occupational pension with Alecta, the income base amount is used to calculate salary limits. One exception is disability pension, where the price base amount is used. The income base amount tracks the income trend in Sweden and the price base amount tracks the price trend. The amounts are changed every year. 7.5 base amounts are an important limit for indicating how much you will receive in various benefits. The national pension only offers remuneration up to this limit. Annual salary translated to monthly salary. The monthly salary is the amount people remember. On the other hand, it is not so certain that people know how much they earn as an annual salary. This is why we usually state monthly salaries in this brochure. The employer reports the monthly salary x 12.2 which includes a standard holiday supplement. Monthly salary Annual salary Salary limit SEK 26,311 SEK 321, price bace amounts SEK 32,029 SEK 390, income base amounts Welcome to alecta.se We have placed information about your occupational pension with Alecta on our website. Here you can also download our brochures. Call any time If you want to order a brochure or ask about your occupational pension, you are welcome to call our customer service, telephone

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