When the employee reaches the age of 25, you start to pay for the retirement pension included in ITP. The retirement pension in ITP 1 is a defined contribution pension, while the retirement pension in ITP 2 is a defined benefit pension.
The retirement pension in ITP 1 is a defined contribution pension. This means that the premium is decided in advance, but not the size of the pension. For employees over 25 you pay a premium that is calculated as
- 4.5 % of salary components up to SEK 41,750* per month
- 30 % of salary components in excess of SEK 41,750 per month
* Corresponds to an annual salary of 7.5 income base amounts.
The employee invests his or her entire retirement pension in the ITP choice. The amount of the final pension depends among other things on salary size, how long the employee has had ITP and how he or she chose to invest the retirement pension.
Retirement pension in ITP 2 is a defined benefit pension. This means that the size of the pension is decided in advance, but the premium is not.Retirement pension in ITP 2 is managed by Alecta. So that the premiums you pay will cover the promised pension, Alecta calculates each monthly premium on the basis of the employee’s age, salary, estimated period of service and prior period of service. This is why we cannot specify an exact percentage.
Retirement pension is calculated using different percentages in different salary bands:
Annual Salary, SEK
Up to 501,000
* income base amount