Occupational pension for government employees

Last changed: 03 September 2021

New occupational pension agreement as of 1 January 2016 (PA16).

As of 1 January 2016, the occupational pension agreement PA 16 applies. The agreement has been negotiated by the Swedish Agency for Government Employers, Saco and Seko. It replaces the pension agreement PA 03.

Today, government occupational pension is divided into two categories:

  • Section I  (born in 1988 or later)
  • Section II (born in 1987 or earlier)

Born in 1987 or earlier (Section II)

If you were born in 1987 or earlier, you belong to PA 16 Section II which consists of:

  • Defined-benefit pension
  • Complementary retirement pension
  • Individual retirement pension.

Section II is basically the same as the previous agreement PA 03.

Defined-benefit pension

If you were born before 1973 or have an annual salary that exceeds SEK 444,750, you are entitled to this section. It is affected by your salary, how many years you have been employed and the year you were born.

Employees with a small salary

  • Made less than SEK 13,180 in 2016.
  • No premiums are paid to the occupational pension scheme.
  • Paid as salary the following year.

To receive a complete defined-benefit occupational pension, the employment period must amount to at least 30 years.

The pension base consists of the average pensionable income for the last five calendar years before the year when retirement age is reached.

The Division of Human Resources sends the application to the employee.

The payment is lifelong and made in connection with the termination of the employment.

Complementary retirement pension (Kåpan Tjänste)

The employer pays 2 percent of your paid salary to Kåpan where the contribution is managed as Kåpan Tjänste.

The fee is administered by Kåpan.

This contribution is paid for employees aged 28 to 65.

Pension from Kåpan is paid between the ages of 65 to 70. If you want the payment at another time, you must apply to SPV in writing at least two months before the date in question.

Individual retirement pension

The employer pays 2.5 percent of your paid salary towards your individual retirement pension. You choose who manages it. The pension is earned between the ages of 25 to 65.

To receive individual retirement pension payments, you must contact the insurance provider who manages this part of your pension.

New information as of 1 January regarding the individual retirement pension:

  • You can transfer the money between insurance providers.
  • Any changes of provider are updated monthly.

Survivor’s pension

PA-16 includes survivor's pension. If a government employee passes away, the surviving family receives a time-limited survivor's pension.

Disability pension

An employee who has been granted complete, unlimited sickness compensation is entitled to a disability pension when their employment is terminated.

If the sickness compensation is time-limited or part-time, temporary disability pension is paid.

Born in 1988 or later (Section I)

If you were born in 1988 or later, you belong to PA 16 Section I which consists of:

  • Mandatory retirement pension
  • Elective retirement pension
  • Flexible retirement pension

Mandatory retirement pension (Kåpan Tjänste)

The employer pays 2 percent of your paid salary up to SEK 37,063 per month. If your salary is higher than that, the employer pays 10 percent from SEK 37,064 and above.

You apply for Kåpan Tjänste and Kåpan Flex with Kåpan.

Elective retirement pension (Kåpan Valbar)

The employer pays 2.5 percent of your paid salary up to SEK 37,063 per month. If your salary is higher than that, the employer pays 20 percent from SEK 37,064 and above. You choose the insurance provider to manage this component of your pension.

You apply for elective pension from the insurance provider of your choosing.

New information as of 1 January regarding the individual retirement pension:

  • You can transfer the money between insurance providers.
  • Any changes of provider are updated monthly.

Flexible retirement pension (Kåpan Flex)

The employer pays 1.5 percent of your paid salary (after a salary deduction). You can use this part of your pension to, for example, reduce your working hours before you retire.

Employees with a small salary

  • Made less than SEK 9,900 in 2016.
  • No premiums are paid to the retirement pension scheme.
  • Paid as salary the following year.
Page editor: PAVD-WEBB@slu.se