1 A Swedish Pyramid

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3 Loss of income principle Basic compensation principle statutory insurance and pension schemes collective insurance and pension schemes Compensation in relation to income makes it possible for insured to maintain their standard of living

4 The role of collective agreements Labour market-wide, cover all professions and sectors High coverage rate - about 90% Based on high unionization rate Ensure industrial peace and order = in the interests of the social partners and central government

5 Advantages of large collective bargaining sectors: - promote job mobility - counteract job-lock Four collective bargaining sectors Privately employed manual blue collar workers Privately employed white collar workers Local government employees State employees

6 Collective insurance and pension schemes for privately employed blue collar workers Sickness (AGS) Work injuries (TFA) Unemployment (AGB) Death at working age (TGL) Old-age pensions (SAF-LO) Waiver of premium clause

7 Sickness – statutory benefits Temporary incapacity for work Statutory sick pay, 14 days Sickness benefit Permanent disability Sickness allowance /activity allowance

8 Sickness – collectively negotiated benefits Privately employed blue collar workers Negotiated Group Sickness Insurance (AGS) Privately employed white collar workers Collectively negotiated sick pay + compensation under the ITP pension scheme Local government employees Negotiated Group Sickness Insurance for Local and Regional Government Employees (AGS-KL) and compensation under the KAP-KL pension scheme State employees Collectively negotiated sick pay + compensation under the PA03 pension scheme.

9 Work injuries Occupational Injuries Act compensation for future loss of income, qualifying days, dental injuries, work injuries abroad Collectively negotiated insurance cover compensation for expenses, pain and suffering, invalidity, future loss of income, death etc.

10 Unemployment Statutory unemployment insurance (administered by unemployment benefit offices) Collectively negotiated supplementary benefits cash benefits support for redundant employees, i.e. job security agreements, career readjustment agreements etc.

11 Death at working age Statutory survivor pensions adjustment pensions child pension allowances survivor support for children Occupational group life insurance schemes under collective agreements basic amount for adults amount for children funeral assistance

12 National pensions Income-related pensions Income-related pension Supplementary pension (earned under the previous pension system) Premium pension Basic protection Guarantee pension (top-up of low or nonexistent income-related pension)

13 Collectively negotiated pensions SAF-LO Pension Agreement – for privately employed blue collar workers. Supplementary Pension Scheme for Salaried Employees in Industry and Commerce (ITP) – for privately employed white collar workers. Collectively Negotiated Local Government Pension Scheme (KAP-KL). Government Sector Collective Agreement on Pensions (PA03).

14 Trade union members’ insurance schemes Traditionally in the LO sector, now in white collar workers’ unions too Examples of trade union members’ insurance schemes group life, accident, children’s, home, pension Compulsory and/or optional Better terms and conditions as well as lower premiums when large groups are insured