Transcript Engelska ITP1 och ITP2 PPT-paket 2015

Salaried employees
Illness / retirement / pension / death
ITP 1 & 2
1
2015-01
ITP
The ITP Plan
Supplementary pension for salaried employees in industry and commerce
ITP 1
ITP 2
Plan since 2007
Plan since 1960
Born in 1979 or later
Born in or prior to 1978
Companies bound by collective agreements have to implement
ITP 1, after approval (Collectum), for all salaried employees
2
2015-01
ITP
The ITP Plan
ITP 1
3
ITP 2
Defined premiums
Defined benefits
Defined premiums
18 years Health insurance
18 years Risk insurance
- health insurance
- waiver of premium
ITPK (28 years)
- retirement pension
- survivors' cover
25 years Retirement pension
Waiver of premium
28 years Retirement pension
Family pension
The employer can offer salaried
employees with salaries > 10 iba
- alternative ITP
- ITP 1
2015-01
ITP
Pension commitment
Defined premiums
Defined benefits
No guarantee of the size of the pension
Guarantees a defined pension
Determined by premiums, return and fees
Pension on final salary
Cost known
The cost is difficult to predict
ITP 2
ITP 1 and ITPK
4
2015-01
ITP
When does ITP apply?
ITP 1
ITP 2
Irrespective of type of employment
At least 8 hours/week
- health insurance from 18 years
- all benefits from 25 years
Permanent (incl. probation)
- all benefits
Limited
≤ 3 months no benefits
> 3 months all benefits retroactive from day 1
Post-employment cover 3 months
5
2015-01
ITP
Sickness - salary < 7,5 pba
7,5 pba
10% collectively
10% ITP
agreed sick pay days 91 - 360
15% ITP
80%
sick pay
salary
1
75%
sickness benefit
80%
sickness benefit
14
90
365
The employer submits a notification of illness after 90 days of illness
6
2015-01
ITP
64%
sickness
compensation
65 years
Sickness - salary > 7,5 pba
30 iba
32,5% ITP
20 iba
80%
sick pay
salary
90%
collectively
agreed sick
pay
65% ITP
7,5 pba
1
14
90
The employer submits a report after 90 days of illness
7
2015-01
ITP
65 years
Sickness
The employer
submits a report after
90 days of illness
30 iba
32,5% ITP
20 iba
80%
sick pay
90%
collectively
agreed
sick pay
65% ITP
7,5 pba
10% collectively 10% ITP
agreed sick pay days 91-360
15% ITP
80%
sick pay
salary
1
8
2015-01
75%
sickness benefit
80%
sickness benefit
14
365
90
ITP
(max. 550 days)
64%
sickness
compensation
65 years
Waiver of premium insurance
ITP 1
ITP 2
- after 14 days of illness
- after 90 days of illness and at least
25% sick leave
- parental leave (13 months)
- leave for child care (at least 25 %)
Waiver of premium
Waiver of premium
- in proportion to the degree of work
incapacity
- in proportion to the degree of work
incapacity
(currently full waiver of premium)
Premiums are paid from the age of 25
Waiver of premium from achieved qualifying
period of 90 days
Waiver of premium from day 15
9
2015-01
ITP
Waiver of premium insurance
- sickness
ITP 1
ITP 2
After 14 days of illness and at least
25% sick leave
After 90 days of illness and at least
25% sick leave
Waiver of premium
Waiver of premium
- in proportion to the degree of work
incapacity
- in proportion to the degree of work
incapacity
(currently full waiver of premium)
Waiver of premium from achieved qualifying
period of 90 days
Waiver of premium from day 15
10 2015-01
ITP
Waiver of premium insurance
- parental leave
ITP 1
ITP 2
Period of parental benefit (13 months)
Does not apply
Leave for child care (at least 25%)
- recommendation that ITP be
maintained for 11 months
Waiver of premium
In the event of leave for child care,
the employer pays the premium
- in proportion to the degree of work
incapacity
11 2015-01
ITP
Pensionable salary - ITP 1
Included
Not included (example)
Gross salary paid/month
Per diem allowance, travel reimbursement,
compensation for use of own car
- overtime, holiday compensation,
holiday pay
- bonus, commission, performance
bonus, etc.
No pay ceiling
Special rules
apply in the event of sickness
12 2015-01
Congestion tax
Non-statutory sick pay, e.g. collective agreement
Taxable benefits, fully or partially
All types of parental pay
Costs for use of own car
ITP
Retirement pension - ITP 1
55
25
Premium
30 %
7,5 iba
SEK 36 313/month
SALARY
4,5 %
• Lifelong or temporary pension
• Full or partial
The employer can pay supplementary premiums
13 2015-01
ITP
65 years
Premium - ITP 1
30,89%
7,5 iba is
equivalent to SEK
36 313/month
4,64%
• The salary is reported monthly
• Retroactive salary payments become
pensionable in the month they are paid out
14 2015-01
ITP
Cost, ITP 1
- example SEK 50,000/month
Salary
≤ SEK 36 313
50,000 – 36 313 = 13,687
Retirement pension
Waiver of premium
Health insurance *
%
4,50
0,08
0,06
SEK
1,634
29
21
%
30,00
0,57
0,32
SEK
4,106
78
44
Total
4,64
1,684
30,89
4,228
*) salary up to SEK 27 813/month
Total SEK 5,912
approx. 12% of salary
15 2015-01
ITP
Active choice - ITP 1
The employee’s choices
Traditional or unit-linked insurance
Choice of fund manager
Survivors’ cover
- repayment cover
- family cover
Right to move
16 2015-01
ITP
Comparison
Traditional
Fund
The insurance company manages the
premiums
The individual selects the fund
manager
Guaranteed basic pension
No guaranteed pension
Bonus
The size of the pension
Development of the unit trusts
The size of the pension
- determined by premiums, return and fees
- value of the unit trusts
17 2015-01
ITP
Choice of fund manager - ITP 1
At least 50%
Max. 50%
Traditional pension insurance
Alecta
AMF
Folksam
Skandia Liv
Unit-Linked insurance
AMF
Danica Pension
SEB Trygg Liv
SPP Liv
Swedbank Försäkring
No active choice
18 2015-01
ITP
Traditional insurance with Alecta
Survivors’ cover - ITP 1
Repayment cover
Family cover
Pension to survivors
Max. 4 pba/year
Payment for at least 5 years and at
most 20 years
Payment max. 20 years
age-dependent premium
Beneficiaries
spouse
partner/cohabitant
child(ren)
19 2015-01
ITP
Family cover - example cost - 1 pba
Age
Premium/year
Payment 5 years
Payment 20 years
25 years
SEK 10
SEK 34
35 years
SEK 20
SEK 66
45 years
SEK 50
SEK 168
55 years
SEK 146
* SEK 389
64 years
SEK 401
* SEK 475
* ceases at the age of 70
20 2015-01
ITP
Family cover - example aged 45
Gross salary SEK 300,000
Gross salary SEK 300,000
Payment period 5 years
Payment period 20 years
Premium 4,5 %
Family cover 1 pba
For pension
21 2015-01
SEK 13,500
- SEK 50
SEK 13,450
Premium 4,5 %
SE 13,500
Family cover 1 pba
- SEK 168
For pension
ITP
SEK 13,332
No active choice - ITP 1
Consequences
Traditional pension insurance
No repayment cover
No family cover
Alecta manages the fund
22 2015-01
ITP
Summary - ITP 1
Summary
Salaried employees born in 1979 or later
Applies irrespective of the type of employment
Disability pension from age 18
Defined premium pension from age 25
No pay ceiling
Active choice
Choice of repayment cover and family cover
Flexible drawing of retirement pension
23 2015-01
ITP
Overview - ITP 1
ITP 1
Statutory pension
Health insurance
age 18
age 25
age 55
Defined premium pension
Waiver of premium
Early drawing
24 2015-01
ITP
age 65
Period of service - ITP 2
360 months
28 years
65 years
Period of service - ITP 2
Time worked
Retirement pension
Sickness
Family pension
Parental leave (11 months)
Possible co-ordination of another
occupational pension for persons born
prior to 1952
25 2015-01
ITP
Pensionable salary - ITP 2
Pensionable salary
12,2 x fixed monthly salary
Commission, bonuses, etc (average of last 3 years)
Regular shift allowance, on-duty remuneration
Travel time remuneration
Holiday pay on variable salary portions as above
(0,5% per holiday day)
Entirely free board or lodging
Max. 30 iba
The employer can report the unreduced salary in the event of
- waiving of salary for a benefit
- partial retirement
26 2015-01
ITP
In the event of pay
rises within five years
of retirement age,
special rules apply
Salary cap - ITP 2
Number of months remaining
until retirement
Maximum pensionable salary
increase
59 - 49 months
1,20 x the iba increase
48 - 37
1,15
36 - 25
24 - 13
1,10
12 - 1
1,00
1,05
Example - 36 months remaining until retirement
2,1% increase in the income base amount in 2015
2,1% x 1,10 = 2,3 % salary increase
27 2015-01
ITP
Retirement pension - ITP 2
30 iba
SEK 1,743,000/year
32,5 %
20 iba
SEK 1,162,000/year
age 55 at the earliest
lifelong/temporary
full or partial
65 %
SEK 435,750/year
7,5 iba
10 %
28 2015-01
ITP
ITPK - supplementary retirement pension
Max. 30 iba
Premium
2%
• Defined premiums
• Temporary or lifelong
The employer can pay supplementary premiums
29 2015-01
ITP
Supplementary premiums
- ITP 1 and ITPK
Supplementary premiums
Extra pension provisions
May only be taken out for salaried employees who have active ITP 1 or ITPK
The premium can be
- ongoing/month or one-off premium
- fixed or % of salary
- premium ladder
Waiver of premium insurance
- mandatory for ongoing premiums
Collectum levies an administration charge on premiums paid in
30 2015-01
ITP
Active choice - ITPK
The salaried employee chooses
Traditional or unit-linked insurance
Choice of fund manager
Survivors’ cover
- repayment cover
- family cover
Right to move
31 2015-01
ITP
Comparison
Traditional
Fund
The insurance company manages
the premiums
The individual selects the fund
manager
Guaranteed basic pension
No guaranteed pension
Bonus
The size of the pension
Development of the unit trusts
The size of the pension
- determined by premiums, return and fees
- value of the unit trusts
32 2015-01
ITP
Choice of fund manager- ITPK
Traditional pension insurance
Alecta
AMF
Folksam
Skandia Liv
Unit-Linked insurance
AMF
Danica Pension
SEB Trygg Liv
SPP Liv
Swedbank Försäkring
No active choice
33 2015-01
Traditional insurance with Alecta
ITP
Survivors’ cover - ITPK
Repayment cover
Family cover
Pension to survivors
Max. 4 pba/year
Payment for at least 5 years and at
most 20 years
Payment max. 20 years
age-dependent premium
Beneficiaries
Spouse
Partner/cohabitant
Child(ren)
34 2015-01
ITP
Family cover - example aged 45
Gross salary SEK 300,000
Gross salary SEK 300,000
payment period 5 years
payment period 20 years
Premium 2,0%
Family cover 1 pba
For pension
35 2015-01
SEK 6,000
- SEK 50
SEK 5,950
Premium 2,0%
SEK 6,000
Family cover 1 pba
- SEK 168
For pension
ITP
SEK 5,832
No active choice - ITPK
Consequences
Traditional pension insurance
No repayment cover
No family cover
Alecta manages the fund
36 2015-01
ITP
Family pension - ITP 2
30 iba
SEK 1,743,000/year
spouse, children 20 years
16,25 %
20 iba
Beneficiaries
Lifelong pension
SEK 1,162,000/year
32,5 %
SEK 435,750/year
7,5 iba
-
37 2015-01
Potential to abstain
from future premiums
Reinforce ITPK
ITP
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
38 2015-01
ITP
Summary - ITP 2
Defined
premiums
Defined benefits
Disability pension
sickness benefit
sickness
compensation
Retirem.
pension
Family
pension
32,5%
16,25%
ITPK
30 iba
32,5%
32,5%
20 iba
65%
65%
65%
32,5%
(333 750)
(333 750)
(435 750)
(435 750)
10%*
15%
10%
-
7,5
* days 91 - 360
Final payment 62 years
39 2015-01
ITP
2%
of salary
Pension - ITP 2
Defined
premiums
Defined benefits
Retirem.
pension
Family
pension
32,5%
16,25%
ITPK
30 iba
20 iba
65%
32,5%
10%
-
7,5 iba
Final payment 62 years
40 2015-01
ITP
2%
of salary
Alternative ITP - ITP 2
A salaried employee with a salary above 10 iba (SEK 581,000 in
2015) can, by agreement with the employer, choose
• Alternative ITP (released premium, premium ladder, etc.)
• ITP 1
41 2015-01
ITP
Changes - ITP 2
• Family Cover (2007)
- increased number of base amounts and payment period
- family cover
• Retirement Pension (2007)
- temporary or lifelong
• Family Pension (2008)
- possibility to reinforce ITPK
• Coordination Regulations (2009)
- abolished for those born in 1952 and later
• Salary Cap (2010)
- follows changes in the income base amount as per table
• Retirement Pension (2011)
- draw fully or partially
• Supplementary Premiums (2011)
- to ITPK
42 2015-01
ITP
Summary - ITP 2
Summary
Summary
Salaried employees born in 1978 or
earlier
ITPK – defined premium pension
Permanent (incl. probation)
Flexible drawing of retirement pension
Pay ceiling 30 iba
- at least 8 hours/week
Limited employment period (> 3 months)
Defined benefits pension
Family pension salary > 7,5 iba
Final payment 62 years
43 2015-01
Disability pension
ITP
Overview - ITP 2
ITPK
ITP 10% , 65% , 32,5%
Statutory pension
Health insurance
--age 28
age 55
age 62
ITP - retirement pension
ITPK
ITP - family pension
Early drawing
Final payment
44 2015-01
ITP
age 65
The cost - based on
ITP 1
ITP 2
Gross salary paid per month
Age
Pensionable salary
Previously earned ITP and/or
another occupational pension for persons
born prior to 1952
45 2015-01
ITP
Premiums - ITP 2
Premiums
18 years
Salary
7,5 pba
Salary
7,5 pba-7,5 iba
Salary
7,5 iba-30 iba
Health insurance
0,06%
0,32%
0,32%
Waiver of premium*
0,05%
0,05%
0,39%
Total
0,11%
0,37%
0,71%
Family pension
Compensation 0,60%
* incl. final payment of ITP and ITPK
Individual premiums 28 years
Retirement pension
46 2015-01
ITPK
2,0%
ITP
Premium maximisation - ITP 2
The premium for retirement pension is max.
- 46,5% of salary portions > 7.5 iba – 30 iba
- 5,8% of salary portions up to 7.5 iba
7,5 iba
maximised
premium
5,8%
Missing premium
Individual premium
47 2015-01
ITP
Premiums - salaried employees
ITP 1
ITP 2
≤ SEK 36,313/month
> SEK 36,313/month
ITP*
4,64
30,89
ITP
TGL
0,20
0,00
TGL
approx. 0,20
TFA
0,01
0,01
TFA
0,01
TRR**
0,30
0,30
TRR**
0,30
Total %
5,15
31,20
* Health and waiver of premium insurance included
** 0,70% for local collective agreement companies
48 2015-01
ITP
max 30 iba
Total %
approx. 12,70
approx. 13,20
Maximum cost - ITP 2
< 7,5 pba
7,5 pba-7,5 iba
7,5 iba-30 iba
Health insurance
0,06
0,32
0,32
Waiver of premium
0,05
0,05
0,39
Retirement pension
5,80 (max.)
5,80(max.)
ITPK
2,00
2,00
2,00
Family pension
-
-
*
Compensation
0,60
0,60
0,60
Total %
8,51
8,77
* 49,80
46,50(max.)
* premium added
family pension
49 2015-01
ITP
Funded system - ITP 2
Premiums are paid until retirement age, which must
be sufficient to cover anticipated pension payments
On new admission
28
65 years
On salary rise
28
40
50
60
Termination
When the payment of premiums
ceases
50 2015-01
28
ITP
40
50
65 years
Paid-up policy
65 years