Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
AFL-law of national insurance system – lagen om allmän försäkring
Law that regulates the Swedish health insurance system and the national pension system, both managed by the Social Insurance Office (Försäkringskassan) in Sweden.
B
Beneficiary – förmånstagare
A person to whom insurance amounts or social benefits will be payed out.
C
Child years – barnår
The four first years in a childs life will give one of the parents a pension entitlement, whether they stay at home with the children or not. This pension is payed out by the Social Insurance Office as a economically compensation to the family with small children.
Collective agreement occupational pension – tjänstepension
Occupational pension is payed out to most pensioneers by the employer in addition to the national pension. The occupational pension is based on an collective agreement between the employer and the union. Compare with early retirement pension below.
D
Defined-benefit pension – förmånsbestämd pension
There is an important distinction between a defined-benefit pension and a pension decided in advance. The defined-benefit pension is in advance decided for a fixed amount or a fixed level, for instance an assured percent of the final salary or middle-range income. Defined-benefit pensions are e.g. collective agreement occupational pensions ITP, ITP-S, ITP-P, PA-91, PA-91 F. Compare with defined-contribution pension below.
E
Early retirement pension – avgångspension
An occupational pension that can be payed out before the ordinary retirement age if you leave your employment earlier. Early retirement pension is usually connected with an overstaffed organisation. Compare with collective agreement occupational pension above.
Early withdrawal – förtida uttag
When the retirement pension is withdrawn before the ordinary retirement age of 65 years with a reduced amount.
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G
Gross benefit – bruttoförmån
A collective agreement occupational pension, that will be reduced with the national pension.
Guarantee pension – garantipension
A part of the new national pension intended for persons with a low income or no income at all. The guarantee pension corresponds to the “folkpension” in the old pension system.
Guarantee rule - garantiregel
A rule within the new national pension system, that implies that people born 1938-1953, will not get a lower pension from the new system than the pension earned until 1994 in the old ATP-system.
I
Income base amount – inkomstbasbelopp
The income base amount is among other things used for calculating the pensionable income. The amount is set every year by the government and is calculated according to the income index, which follows the income trend and variations in the price range. The calculation of the income base amount is made by the Swedish Social Insurance Office.
Income pension – inkomstpension
The income pension is a part of the national pension and based on the total life income. The income pension is payed out by the Swedish Social Insurance Office.
Indexation - värdesäkring
Adjustment of a paid-up policy or a payed out amount connected to the income index, which follows the income trend and variations in the price range.
Individual retirement pension - individuell ålderspension
A part of the retirement pension within the occupational pension PA 03 (for civil servants) that is a defined contribution that is a defined contribution pension. The contribution for the unit-linked or traditional insurance is paid by the employee.
Insurance provider - försäkringsgivare
Refers to a company that provides insurances.
Investment fund - fond
A fund could be compared with a strong-box, where a lot of people save their money. The fund buys shares and valuable paper to make the saved money increase.
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L
Life annuity - livränta
A life annuity is mainly the same thing as a paid-up policy. The phrase “life annuity” is used within some collective agreement occupational pensions. The life annuity is payed out regularly from the age of 65 as long as the pensioneer lives or until the time appointed.
M
Middle generation – mellangeneration
Refers to people born during the years of 1938-1953, who are supposed to have their national pension payed out from the old, as well as the new pension system.
N
National basic pension – allmän pension
Refers to the pension within the national pension system, that you are entitled to according to the law of public insurance. Income pension, premium pension and guarantee pension are different benefits administrated by the Social Insurance Office (Försäkringskassan).
National pension fee – allmän pensionsavgift
A part of the pension fee for the national basic pension that you pay yourself. The fee is withdrawn by your employer along with the tax deduction.
National supplementary pension system - ATP-systemet
ATP is short for the general supplementary pension - an income based part in the old national basic pension. People born before 1954 are totally or partly covered by the old system.
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O
Occupational pension – tjänstepension
A pension that is paid for by your employer according to a collective or individual agreement between the employer and the employees.
Occupational pension agreement PA 03
- tjänstepensionsavtal PA 03
Occupational pension agreement for people employed in the Swedish Civil Service and certain non-government employees within the cultural sector (theater, dance and music). The pension agreement PA 03 was introduced 2003 to replace the old agreement PA-91.
P
Paid-up policy – fribrev
The employer will issue a paid-up policy if you leave your employment before you retire (i.e. before the age of 65 but after the age of 28 years).
The paid-up policy contents information about the pension capital you have earned, and which will be paid out when you reach your retirement age. The paid-up policy represents the pension premies that your employer has paid in during your employment. Compare with "life annuity".
Pay-as-you-go-system - fördelningssystem
A pension system where one years’ running pension payments are financed by the proceeds from the charges payed in for the pensions during the same year. For example this system counts for state retirement pension and the national supplementary pension system.
Pensionable income - pensionsgrundande inkomst
Refers to the income that makes the basis for calculation of the national pension in the future. Simply explaned the annual income reduced by the national pension contribution.
Pensionable salary 1- pensionsunderlag 1
The pension salary in the new national pension system consists of the pensionable income and the pensionable sum, i.e. the amounts that can be included for child years, periods for military service, studies etc.
Pensionable salary 2 - pensionsunderlag 2
In the occupational pension agreement for people employed in civil service the pensionable salary is the average of the pensionable income for the five last years of service before retirement.
Pensionable service factor - tjänstetidsfaktor
The concept is used when calculating the defined-benefit pension and refers to how big part of full pension you will get depending on how long time you have been employed.
Pensionable sum - pensionsgrundande belopp
Refers to the benefits you can get from the Social Insurance Office like sickness benefits, activity grants, studies, child years, military service – all pensionable sums for the national pension.
Pensionable time of service - pensionsgrundande tjänstetid
The concept is used for calculating the defined-benefit pension and refers to the period of employment that entitles the employed to a pension.
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Pension capital - pensionsbehållning
Refers to the total amount that you have earned up to now for your future income pension from the national pension system.
Policy holder - försäkringstagare
A person who has come to an agreement with an insurence provider. The policy holder is responsible for paying the premium to the insurance provider.
Premium pension - premiepension
The premium pension is the part of the new national pension that you personally can invest in investment funds. The growth of the premium pension will depend on the increase in value.
Price base amount - prisbasbelopp
The price base amount follows the price trend in the country year after year and is set by the government. The amount is used for calculating different kinds of benefits. The sum of the benefit changes automatically when the price base amount is changed.
Private pension - privat pensionssparande
Money that many people voluntarily are saving for the pension, unsually at insurance companies and banks.
R
Repayment cover - återbetalningsskydd
If you select a repayment cover for your privat pension, the pension will be payed out to survivors, should you pass away before your retirement.
Retirement pension - ålderspension
A pension that is paid out when you reach a certain age, usually the age of 65. The stipulated age could however be varying in different pension systems. The national basic pension for example could be paid out from the age of 61.
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S
Social Insurance Office (Försäkringskassan)
A swedish public authority that is responsible for the Swedish health insurance system and the national pension system.
Survivor's pension/family pension - efterlevandepension
Pension paid out to surviving husband/wife and child.
T
Traditional insurance - traditionell försäkring
The insurance company decides how the policy holders' money should be placed according to special investment rules. The policy holder is given a fixed rate of interest. If the policy yields a return that is larger than the fixed rate of interest the surplus amount is distibuted to (shared by) the policy holders.
U
Unit-linked insurance – fondförsäkring
An insurance, where you yourself (the policy-holder) selects the funds for your investment of the pension contribution. There is no guaranted pension amount. The pension amount depends on the growths rate.
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Updated: 6/24/2010