For salaried employees
The ITP occupational pension
The ITP occupational pension is for salaried employees in the private sector who work for a company that has a collective agreement. The ITP is the result of an agreement between the Council for Negotiation and Cooperation (PTK) on the employee side and the Confederation of Swedish Enterprise (Svenskt Näringsliv) on the employer side.
Collectum is the selection centre for the ITP. This means you inform us where you want to invest your ITP or ITPK pension – if you want to choose. If you don’t choose where to invest your pension, the premiums are invested in a selected and quality-assured default option, which is a traditional insurance policy with Alecta. You can also choose additional cover for your family.
Thanks to the competitive tendering we carry out at Collectum approximately every five years, you pay very low fees to the insurance companies that manage your ITP.
Each year, you receive a red envelope from Collectum containing an annual statement of your ITP occupational pension. You can find information about the annual statement in English here. To see the amount of money paid in by your employer and the choices you have made for your ITP or ITPK, you can log on to your account at Mina sidor External link. (in Swedish) using Swedish electronic identification (e-legitimation).
Your ITP pension is part of your company’s collective agreement
In Sweden it is to a large extent the labour market parties who determine the conditions in the workplace, not just politicians and laws. We call this ‘The Swedish Model’. The labour market parties include representatives from employees (through trade unions) and representatives from employers (through employers’ organisations). Their agreements are called collective agreements.
Collective agreements regulate matters such as terms of employment, salaries, working hours, holidays and occupational pensions, and constitute binding agreements for the companies that sign them. Different sectors have different collective agreements.
The collective agreement that applies to salaried employees in the private business sector is an agreement between an employee union within the Council for Negotiation and Cooperation (PTK) and an employers’ organisation within the Confederation of Swedish Enterprise (Svenskt Näringsliv). The ITP occupational pension is part of this collective agreement.
Because collective agreements are negotiated by large organisations with lots of members behind them, the insurance policies that are part of the agreements are far more advantageous than anything an individual can arrange on their own. For example, the fees for unit-linked insurance within the ITP occupational pension total one third of the fees for the exact same insurance on the open market.
With a collective agreement in your workplace, you know that you have a good and secure solution for yourself throughout your working life, should you have children or fall ill, and for your family if you die.
When your workplace has a collective agreement, you are entitled to several important employment benefits. For example, your employer is obliged to take out an ITP occupational pension for you and allocate money to your pension.
In addition to your occupational pension, you have a range of other insurance policies through the collective agreement that can provide you with benefits such as compensation if you fall ill, have a work-related injury or take parental leave, as well as support in the event of termination of your employment. The collective agreement also regulates the terms of employment.
You can always speak to your employer or to a trade union if you have questions regarding the terms of employment or collective agreement at your workplace.
Watch a film about the benefits of collective agreements on ptk.se External link..
The great thing about collective agreements is that you don’t have to do too much yourself. You are entitled to benefits that have already been negotiated.
In the event that you need to get compensation from any of the insurance cover provided by the collective agreement, such as accident insurance, you may need to make a claim.
If you are unsure about what to do, for example to get compensation from an insurance policy, or what you are entitled to, speak to your employer.
If you are unsure whether your workplace has a collective agreement, ask your employer. And when you change jobs, remember to check whether your new employer has signed a collective agreement.
ITP - an insurance package
Retirement pension, disability pension and cover for your family
The ITP occupational pension is an insurance package that gives you
- a retirement pension – you can draw this pension from age 55
- compensation if you suffer from a long-term illness
- cover for your family when you die.
Your employer pays money, called retirement pension premiums, into your occupational pension. You can choose how all of the money (if you have the ITP 1) or some of the money (if you have the ITP 2) should be invested. If you don’t make a choice, your money is invested in the default option, which is a selected traditional insurance policy with Alecta.
- If you are on sick leave for more than 90 days, you will receive compensation called the ITP disability pension. This is to supplement the compensation you receive from the Swedish Social Insurance Agency (Försäkringskassan).
- If you have a family and would like them to receive compensation when you die, you can choose survivor’s protection cover.
- Read more about the rules that apply when you take parental leave or leave of absence.
If you have the ITP 1
The premium that your employer pays is a certain percentage of your monthly salary:
- 4.5 % of your monthly salary on amounts up to SEK 46,438.
- 30 % of your salary portions on amounts over SEK 46,438.
If you have the ITP 2
The largest portion of your occupational pension is the ITP 2 part. It is calculated as a certain percentage of your final salary when you retire. Alecta, the provider that manages the ITP 2, calculates the premiums your employer pays into your ITP 2 based on your age, estimated period of service and any occupational pension you have accrued previously.
A smaller portion of your pension is the complementary occupational pension ITPK, that you also have with the ITP 2. The premium that your employer pays into your ITPK corresponds to 2 % of your monthly salary.
If you have the ITP 1
The size of your pension depends on your salary, how long you have the ITP 1 and the value development of your savings.
If you have the ITP 2
The ITP 2 pension corresponds to a percentage of your final salary, according to the following (the figures apply to someone who has worked and had ITP for 30 years, if you have ITP for a shorter time, the pension is reduced):
Pension as a % of salary portions
Salary up to SEK 557,250
Salary portions between
Salary portions between
The size of your ITPK – the complementary occupational pension that you also have with the ITP 2 – depends on your salary, how long you have had the ITPK and the value development of your savings.
If you want to, you can choose where to invest your pension money yourself. If you don’t make a choice, your money is invested in the default option, which is a traditional insurance policy with Alecta. You can also choose extra cover for your family.
- Here is where you can find the forms to choose cover for your family or where to invest your pension savings.
- You can also log on to your account at Mina sidor External link. (in Swedish) to make a choice.
You keep the ITP pension you have accrued even if you move away from Sweden, but the earliest you can draw your pension is at age 55. When you want to begin drawing your ITP pension, you need to contact the insurance company that manages your pension savings.
Competitive tendering means lower fees
A top-notch pension
Roughly every five years, Collectum carries out a competitive tender process to appoint managers of the ITP occupational pension. This ensures that your occupational pension is as high as possible, through low fees and good conditions. Our competitive tender processes have enabled us to push down ITP fund fees by as much as 78 per cent since 2007. This means more money upon retirement for everyone with the ITP.
Through competitive tendering, we have been able to push down fees to insurance companies significantly. This means a lot more of the money that your employer pays into your occupational pension goes towards your future pension instead of to the insurance company that manages your pension.
In addition to pushing down fees, we also set other quality requirements in the competitive tendering process to ensure that all of the selected options offer a good chance of receiving a high pension.
All of the insurance companies appointed in the tender process have also signed the UN Global Compact (UNGC) sustainability principles and the UN Principles for Responsible Investment (UNPRI).
All in all, competitive tendering guarantees a high-quality management of the ITP occupational pension.
Collectum carries out competitive tender processes on behalf of the labour market parties PTK and Svenskt Näringsliv to ensure the best possible conditions for your ITP savings. Collectum makes no commercial gain from this.
Thanks to the competitive tender process, much more of the money that your employer pays into your occupational pension goes towards your future pension, instead of to the company that manages your pension.
You can choose where to invest your pension savings yourself if you want to, but you don’t have to. Through competitive tendering, we ensure that you will receive an exceptionally good occupational pension, regardless of whether you make an active choice or not.
If you wish to, you can move the capital you have accrued to another of the eligible companies at any time. Thanks to our competitive tendering, even the transfer costs are low. You can also add or remove survivor’s protection to your ITP 1 or ITPK at any time.
The next competitive tender process will take place in 2023. If this results in any changes that concern you, for example if the insurance company where your ITP 1 or ITPK is invested is not awarded a contract, we will let you know.