This is how your pension will be affected if
- your salary changes
- you earn more than ten income base amounts
- you have a leave of absence
- you work abroad
If your salary changes
Your employer notifies us when your salary changes, so that you receive the correct level of retirement pension.
Lower salary means a lower pension
Reducing your salary and reducing your working hours often have the same consequences. As long as you work more than 16 hours a week you will retain your whole occupational group life assurance TGL. If you work between 8 and 16 hours, your beneficiaries are entitled to half the amount. If you have selected family cover, it works just as before. However, if you reduce your salary substantially, you should ensure that your premium is sufficient to pay for the family cover premium.
Higher salary means higher pension
A higher salary generates a higher ITP pension.
If you have ITP 2 and your salary exceeds certain base amount limits, you should be aware that you are covered by certain new terms and conditions, and possibilities. Learn more below.
New monthly salary over SEK 37,807?
At the monthly salary of SEK 37,807, there is a limit of 7.5 income base amounts. If you have ITP 2, you will receive family pension at this limit, unless you actively waive it.
Will you earn more than SEK 50,410 per month?
When you ITP 2 and earn more than SEK 50,410 per month, you take a step above an annual salary of ten income base amounts. Upon agreement with your employer, you have the option to choose alternative ITP or switch to ITP 1, which otherwise applies to those who are born 1979 or later.
If you earn more than ten income base amounts
This applies only to those having ITP 2! (If you are born 1978 or earlier, you normally belong to ITP 2, with a defined benefit retirement pension.)
If you earn more than SEK 50,410 per month (equivalent to ten income base amounts), you can influence your occupational pension in various ways. Options B and C below require an agreement with your employer.
A. Keep ITP 2 for the entire salary
If you do not select another option, you will continue to have a defined benefit retirement pension for your entire salary. You also have an ITPK complementary occupational pension premium. Anyone who has ITP 2 and earns more than SEK 37,807 per month also receives premiums paid to the family pension in ITP 2, which your spouse and children younger than 20 years will receive in the event of your death.
Waiver of family pension
Anyone who wants to can now opt out of the family pension and instead redirect these premiums to their own ITPK. What happens then is that you keep the defined benefit retirement pension in ITP 2, but you receive a higher defined benefit retirement pension which you invest in the ITPK choice.
B. ITP 2 for parts of the salary and alternative ITP
If you are in agreement with your employer about choosing alternative ITP, you will be able to place most of your ITP 2 premium (over SEK 37,807 per month) in an alternative pension solution. In this case you take on the risk – the size of your pension depends on the development of your saved capital. The employer’s obligation is limited to paying the premium.
The disability pension that is included in ITP cannot be moved to an alternative pension solution and remains in ITP.
You waive parts of ITP
A common misconception is that alternative ITP is a kind of bonus in addition to the ITP solution of the collective agreement. However, this is not the case. If you choose alternative ITP, you refrain from ITP on the part of the salary above SEK 37,807 per month. For that part of the salary, you and your employer sign a pension solution in an insurance company or pension fund other than Alecta, which manages your other ITP.
You cannot change your mind
If you have selected alternative ITP, you cannot change your decision. You can only change back to full ITP 2 (option A) if you change employment and the new employer has ITP 2.
Alternative ITP outside the ITP plan or in ITPK
Your alternative ITP can be placed in a pension solution completely outside of the ITP plan. However, after agreement with your employer it is also possible to transfer the premium to your ITPK instead.
C. Transfer to ITP 1
You can also agree with your employer to transfer to ITP 1. ITP 1 only consists of defined benefit retirement pension. ITP 1 works in the same way as ITPK, but the employer pays a premium corresponding to
- 4.5% of your salary up to SEK 38,438 per month and
- 30% of your salary above SEK 38,438 per month.
If you choose to transfer to ITP 1, you can decide how your entire occupational pension should be invested. You do that in the ITP 1 choice. You have the same companies to choose from as for the ITPK choice. You can find more information about this in our fact sheet.
You cannot change your mind
If you have selected to transfer to ITP 1 you cannot change your decision. Only if you change employment and start working for a new employer with ITP 2 can you
- return to full ITP 2 (option A above) or
- chose alternative ITP (option B above).
If you take a leave of absence
Your employer is not obligated to continue paying premiums for your ITP occupational pension when you are on leave. However, premiums for TGL will be paid as long as you are employed and a resident in Sweden. Special rules apply if you are in the military service or studying.
If you are on leave for studies in accordance with the Study Leave Act (and are entitled to study assistance) your TGL may continue to apply through a so-called post protection for up to 27 months.
If you work abroad
The changes regarding your pension when you work abroad depend on your terms of employment.
Are you still employed and salaried by a Swedish legal entity when you are working abroad? Then your ITP occupational pension applies just as before. You also have occupational group life insurance TGL and work injuries insurance (TFA) just as before. Moreover, your employer must take out medical expense insurance for you.
If you do not have the right to Swedish sick pay
If you do not have right to Swedish sick pay when you are working abroad, you will instead receive an extra disability pension through your ITP for long-term sickness (after three months). When you work in Sweden, you receive disability pension after three months of sickness for the salary you have above SEK 27,541 per month. When you are abroad, you will also receive disability pension for amounts below this limit.
If you do not earn national pension
If you do not earn national pension when you are abroad, you can in some cases receive compensation for this loss through your ITP. Read more about compensation abroad.
Are you on leave from a Swedish employer?
When you are on leave from your Swedish employer and are working on contract abroad, in some cases you can be covered by the collective agreement. Talk to your employer about how they usually solve the pension issue in such cases.