FFFS 2007:24

Summary

Both for nominal pension commitments and such commitments that entail a right to future compensation for inflation, the interest rate assumption in the calculation shall be based on smoothed market rates for long-term government bonds over time. FI determines the interest rate assumption once a year. It is also possible to use lower, stable and more conservative interest rate assumptions in the calculation. The regulations also introduce new current mortality assumptions that are based on the employee's year of birth.

The regulations contain the so-called safeguarding bases that must be used to calculate the capital value for the safeguarding of pension commitments outside life insurance companies and occupational pension funds. The safeguarding bases provide the basis for when an employer calculates the capital value of an employee's earned pension at a specific point in time.

The new regulations replace Försäkringsinspektionen's announcement, BFFS 1977:5. The regulations go into effect on 1 January 2008, but may be applied as of 31 December 2007.

Amendments to the basic regulation

FI is updating the assumptions on mortality for retirement pension and morbidity for disability pension that are set out in the appendix to the regulations. The assumptions provide guidance for employers when they apply the Safeguarding of Pension Commitments, etc. Act (1967:531) (Safeguarding Act). The objective of the amendments is to result in more accurate calculations. Amendment FFFS 2020:5

The amendment refers only to a correction in the appendix under which firms shall always calculate the capital values when there may be a right to survivor's pension according to an agreement.

The memorandum specifying the justification and impact has thus been changed in respect of the calculation of survivor's pension; see footnote 1 in the following document. The corrections do not affect entry into force of the regulations, which occurs in accordance with the earlier decision. Amendment 2007:31

Amendments

FI is updating the assumptions on mortality for retirement pension and morbidity for disability pension that are set out in the appendix to the regulations. The assumptions provide guidance for employers when they apply the Safeguarding of Pension Commitments, etc. Act (1967:531) (Safeguarding Act). The objective of the amendments is to result in more accurate calculations. Amendment FFFS 2020:5

The amendment refers only to a correction in the appendix under which firms shall always calculate the capital values when there may be a right to survivor's pension according to an agreement.

The memorandum specifying the justification and impact has thus been changed in respect of the calculation of survivor's pension; see footnote 1 in the following memorandum below (available only in Swedish). The corrections do not affect entry into force of the regulations, which occurs in accordance with the earlier decision. Amendment 2007:31