2017

ITP 1 PENSION CHOICE – FOR PRIVATE SECTOR EMPLOYEES You have started saving for your pension. Your employer pays the premium and you can decide how the money is invested. In this folder we tell you how to do it. 1

THIS IS ITP 1 You have a collectively agreed pension, ITP 1, through your employer. ITP 1 is a supplementary pension for salaried employees in the private sector. Your employer pays a premium for this pension every month. The ITP 1 choice allows you to decide how this money is invested. Collectum makes sure that this pension money is invested as you wish.

The ITP occupational pension is the result of an agreement between The Confederation of Swedish Enterprise and The Council for Negotiation and Co-operation (PTK).

HOW MUCH MONEY CAN YOU INVEST? This is what your employer pays into your ITP 1 each month: ■■  4.5 per cent of your monthly salary up to SEK 38,438.*

In addition to this, some people have an agreement with their employer on complementary premiums.

■■  30 per cent of your monthly salary in excess of SEK 38,438.

* Corresponds to an annual salary of SEK 461,250 (7.5 income base amounts). If you earn …

… your employer pays each month

The amount available for investment in one year

SEK 20,000 / month

SEK 900

SEK 10,800

SEK 30,000 / month

SEK 1,350

SEK 16,200

SEK 40,000 / month

SEK 2,198

SEK 26,376

HOW MUCH WILL YOUR ITP 1 RETIREMENT PENSION BE? How much money you will have to live on later in life depends on ■ the amount of money that has been paid in ■ how the value of your money has developed. ■ the charges made by the insurance companies that manage your money.

Collectum’s 1 % charge is deducted from the monthly amount (however, the maximum amount deducted is SEK 450 per year) before the money is transferred to the insurance company chosen by you.

ITP 1 IS NOT ONLY MONEY FOR YOUR PENSION ITP 1 not only provides you with financial security when you retire, but also if you should become ill for a long period. You can also choose cover for your family. Read more about this on the next page.

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HOW TO MAKE THE ITP 1 CHOICE Make your choice by completing the choice form you will find at collectum.com. When making your ITP 1 choice you decide on ■■  a traditional insurance for half your ITP 1 money

You can also make your ITP 1 choice by signing in to My pages at collectum.com. (The online service is in Swedish.)

■■  traditional insurance and/or unit-linked insurance for the remaining

half of your ITP 1 money

■■  whether you want repayment cover ■■  whether you want family cover.

TRADITIONAL INSURANCE Traditional insurance provides a more cautious investment with certain guarantees. The insurance company decides how the money should be invested.

UNIT-LINKED INSURANCE Unit-linked insurance is an investment with more risk but the possibility of a more substantial increase in value. There are no guarantees. The money is first placed in an entrance fund or a mix of funds. You can then choose among the company’s funds.

WHAT TYPE OF SAVINGS SUIT YOU? We cannot advise you on what you should choose, but we can help you to compare the different alternatives. Read more on the last page about where you can find help in making your choice.

REPAYMENT COVER Repayment cover means that the family will receive your ITP 1 pension when you die. You do not pay a fee, although you do incur a reduction of income. This is because you will not receive a share of the so-called inheritance gain, received by those who choose not to have a repayment cover. Choosing repayment cover thereby impacts the size of your future pension. The inheritance gain is relatively small up until the retirement age, but becomes significantly larger after that point. If you change your choice of repayment cover in the future, this change will apply to all your ITP 1 insurances, if you have several insurance contracts, and also to premiums paid in previously.

FAMILY COVER Family cover is an extra pension which goes to your family if you die before 65 years of age. You can decide the amount and payment period. Depending on what you choose and your age, family cover costs different amounts. The family cover ceases if you are no longer employed with right to ITP 1. The family cover is insured with Alecta. The cost of the family cover is deducted from the premium your employer pays for your ITP 1 pension.

HOW MUCH CAN YOUR FAMILY RECEIVE? Visit collectum.com for more information regarding the amounts and payment periods you can choose for your family cover, and who is entitled to receive money after your death.

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SELECTED COMPANIES We have carefully selected the insurance companies that you can choose to manage your ITP 1 and we have made tough demands. Among other things we have pressed down their charges so that your pension will be as high as possible. Here are the selected companies that you can choose between: TRADITIONAL INSURANCE

UNIT-LINKED INSURANCE

Alecta (default alternative) www.alecta.se

AMF www.amf.se

AMF www.amf.se

Danica Pension www.danicapension.se

Folksam www.folksam.se/itp

SEB www.seb.se/avtalspension

Skandia Liv www.skandia.se

SPP www.spp.se/itp

KEEP A LOOK OUT FOR THE RED ENVELOPE. Every year you will receive a red envelope from Collectum that contains an annual statement with a summary of your occupational pension. If you have any questions about the value appreciation of your occupational pension money, please contact the insurance company that manages your money.

Swedbank www.swedbank.se/itp

YOU CAN CHANGE YOUR CHOICE IN THE FUTURE When you make your first choice you have a so-called choice period. You can, of course, change your choice even after the choice period has expired. MAKE YOUR CHOICE WITHIN THE CHOICE PERIOD If you make your choice within the choice period, which is three months, you do not need to fill in a health declaration if you choose repayment cover and/or family cover. You can also make a choice after the choice period has expired, but then you must complete a health declaration if you choose cover for your family.

IF YOU DO NOT MAKE A CHOICE If you do not make an ITP 1 choice, your money will be invested in the default alternative, which is a selected and quality-assured insurance at a low fee. You will then have no repayment cover or family cover. You are free to add this cover at any time. If you do this after the choice period has expired, you must complete a health declaration.

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LIKE TO KNOW MORE? Since we are impartial we do not offer any advice on what you should choose. On the other hand, we can give you objective information. If you have any questions, please visit our website or give us a call: ■■  At collectum.com you will find more information about ITP 1, repayment

cover, family cover, types of savings and the companies’ charges.

■■  If you have any questions you are always welcome to contact our customer

service by telephone, +46 20 40 85 00.

WHAT DOES COLLECTUM DO FOR YOU? The occupational pensions company Collectum is the choice centre for the ITP 1 choice. One of our key tasks is to ensure that you, as a salaried employee in the private sector, receive an occupational pension that is as high as possible. We do this by making tough demands on the companies we contract to be managers of the ITP 1 occupational pension. We are non-profit making which enables us to offer you objective information when you make your choice.

Text Collectum • Grafisk form Ziggy Creative Colony • Illustrationer Rithuset • 5030 • 2017.01

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