The selectable part – born in 1988 or later
Every month, your employer pays money equivalent to 2.5% of your wages into the selectable part of your occupational pension. You choose how the money is managed. You earn into the selectable part from the first day of your government employment, and at the longest until you turn 67.
If your wages are higher than 40,250 SEK, your employer pays in 20% of your wages from 40,251 SEK and up into this part.
Example: How much money there will be
Annika earns 42,500 SEK a month. Her employer pays in the equivalent of 2.5 percent of her wages up to 40,250 SEK and 20 percent of her wages from 40,251 to 42,500 SEK (2,249 SEK).
2.5% x 40,250 = 1,006 SEK
20% x 2,249 = 450 SEK
Total: Annika's employer pays 1,006 + 450 = 1,456 SEK every month into Annika's selectable part.
The amount of 40,250 SEK is the sum of 7.5 income price base amount, which is what the calculation is based on.
As a new employee
When entering into government employment, you select how this part is managed. You only need to select if you want to. If you do not make your own selection, the money is placed into a traditional insurance scheme without repayment cover with Kåpan Pensions (Kåpan Valbar). If you wish to change your selection, you may do so. To make a selection you can send for or order a selection form.
If you want to make a new selection
You can change your selection, and choose another insurer to manage your money. To make a new selection you can send for or order a selection form.
These are the choices you should make
1. Select the type of savings
You should choose between traditional insurance or unit-linked insurance.
With a traditional insurance, it is the insurer that determines how your money is placed and managed. The insurer places the money in e.g. interest-bearing securities, shares and real estate properties and takes care of the administration. You always have a guaranteed pension. The warranty differs between various insurers. It can involve e.g. a warranty that promises you will get back your deposited money when you retire. If the insurer manages the money better than what they promised in the warranty, you can get bonuses, that is to say that you would receive a higher pension than the guaranteed pension.
With a unit-linked insurance, you decide how your money should be placed by selecting one or more funds. Money placed in funds can both decrease and increase in value, and therefore, no pension is guaranteed. This means that you might recieve less money than you have deposited into the funds, however should the market be doing well your money can increase in value.
2. Select insurer
- You are to select which insurer you want to manage your money. You can see the fees and costs that the various insurers charge to manage your money.
- If you select an insurerthat offers unit-linked insurances, your money is firstly places in a so-called entry solution. The insurer you have selected then contacts you so that you can choose between the funds which the insurer offers.
3. Select if you want a repayment cover
Repayment cover means that your family members receive your pension in the case of your death. It is your wife, husband, partner firstly and your children secondly that will recieve the pension. You can also chooce your previous wife, husband, partner or children to any of these as beneficiaries of the pension. If you choose to place a repayment cover on your insurance your own pension will be lower as you do not receive “inheritance gain”
You can change your mind and add the repayment cover later. The rules to add repayment cover later can vary between different insurers. If you are single and do not have children, you should not select repayment cover.
Remember that you, via your employment, have a financial protection in the form of survivor's pension and service group life insurance for your survivors.
If you want to move your money
If you want to, you can move your money from one insurer to another, or to another form of savings with the same insurer. To move your money please contact our Customer Service at +46 (0)20-51 50 40.
If your State employment ends
If your State employment ends, your employer will stop paying in money to the selectable portion. The money you have earned, however, will remain with the insurer managing your money until it is time for you to retire.
You can take out your money starting at the age of 61
The money is paid out every month for as long as you live. To start taking out your money, you contact the insurer that is managing it. If you have not made a selection, your money is with Kåpan Pensioner; contact them to start taking out your money. If you have not started taking out your pension within three years of turning 67, you money will be paid out to you automatically.
The selectable portion in brief
- You can choose which insurer will manage your money.
- If you do not make your own choice, the money is placed into a traditional insurance scheme without repayment protection with the insurer Kåpan Pensions (Kåpan Valbar).
- The selectable portion is sometimes also called Ålderspension valbar.
- It can be paid out starting from when you turn 61.
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