Law and agreements Overview

Overview LAW AGREEMENTS PRIVATE

What is the employee covered by? Overview LAW AGREEMENTS PRIVATE SALARIED EMPLOYEES Collectum Retirement pension SAF-LO Collective Pension WAGE EARNERS Fora Illness AGS Death TGL Work injury insurance TFA Work shortage AGB/TSL Illness / retirement pension The ITP plan Death TGL (in Alecta or another eligible company) Work injury TFA Work shortage AGE/TRR 3 Fora Parental allowance supplement FPT

Base amounts Overview Income base amounts (iba) SEK SEK Price base amounts (pba) SEK SEK

Income ceiling Overview Sickness benefit/sickness compensation Work injury insurance Temporary parental allowance Statutory pension 7,5 pba Parental benefit 7,5 iba 10-fold earner/Alternative ITP 10 pba ITP 2 10 iba ITP 1 SAF-LO Collective Pension Sick pay according to law and agreement TFA 30 iba SEK /year SEK /year SEK /year SEK /year SEK /year

Employer’s contribution Overview Labour market contribution2,64 General employment tax10,15 12,79 31,42%

Employer’s contribution - deviation BornContributionPercentage 1937 and earlierNo contribution Retirement pension contribution10,21% 1990 and laterEmployer’s contribution25,46% Overview New Start jobs/Special New Start jobs - compensation for employer's contribution to employer

Special payroll tax 24,26% of the pension expenses in the company Overview

Premiums - wage earners Salary > SEK /year% Salary ≤ SEK /year% Career readjustment insurance* 0.30 AGS 0.00 TFA 0.01 TGL0.00 FPT0,00 SAF-LO Collective Pension** - pension premium - waiver of premium Total4.81 Funded by surplus funds Total premium invoiced4.11 * 0.60% for local collective agreement companies ** The premium is paid from the month in which the wage earner turns 25. Overview

max 30 iba ITP approx. 12,70 TGL approx. 0,20 TFA0,01 TRR**0,30 Premiums - salaried employees ≤ SEK /month > SEK /month ITP*4,6430,89 TGL0,200,00 TFA0,01 TRR**0,30 * Health and waiver of premium insurance included ** 0,70% for local collective agreement companies Total % 5,15 31,20 Total % approx. 13,20 ITP 1 ITP 2 Overview

Maximum cost - ITP 2 < 7,5 pba7,5 pba-7,5 iba7,5 iba-30 iba Health insurance0,060,32 Waiver of premium0,05 0,39 Retirement pension 5,8 (max) 5,80 (max) 46,50 (max) ITPK2,00 Family pension--* Compensation0,60 0,65 * premium added family pension Total %8,518,77 * 49,80 Overview

Career readjustment support and AGB are part of the career readjustment insurance that applies to companies with collective agreements Fora SAF-LO Collective Pension AMF Insur. company Company TSL Career readjustment support AGBTGLAGSTFA AFA Insurance Organisation - wage earners Overview 12 FPT

Organisation - salaried employees Overview Collectum Fora ITP 2 Company Insurance companies Alecta TGLTFA Career readjustment agreements ITP 1 Family pension RiskITPK Retirem. pension Disability pension Premium waiver Retirem. pension Alecta Bliwa Folksam LF Movestic SEB Trygg Liv SEB Trygg Liv Fond Skandia Liv AFA Insurance TRR PRI Pensionsgaranti Company

Who are “self-employed persons”? Corporate form According to the beneficiary clause EFThe owner himself HBAll co-owners ABSelf-employed person himself or together with spouse, children and/or parents owns at least 1/3 of the shares Overview and the self-employed person’s spouse who is active in the company

Obligation to take out insurance Overview Company Local collective agreement with e.g. IF Metall Insurance agreements with Fora must be taken out for all employees AFA insurance, Career readjustment insur. and SAF-LO Collective Pension for wage earners TFA for salaried employees Insurance agreements must be taken out for all employees AFA insurance, Career readjustment insur. and SAF-LO Collective Pension for wage earners ITP - TGL - TFA - TRR for salaried employees Member of Confederation of Swedish Enterprise Union agreement e.g. MAF - IF Metall MAF - Unionen Company Local collective agreement with e.g. Unionen

Guarantee Collective insurance schemes guarantee all employees covered by “recognised” collective agreements the right to compensation even if the employer has failed to maintain insurance cover. Overview Retroactive premiums for the employer

Financing systems Overview Funded system ITP/SAF-LO Collective Pension Premium pension Charges Payments retirement age fund Charges Payments retirement age Pay-as-you-go system Income pension Supplementary pension

Salary terms - pensions Retirement pensionSAF-LO Collective Pension ITP 2 Work income Other remuneration - sickness benefit - parental benefit - UIF - taxable benefits At least SEK Pensionable salary - gross salary per year Pensionable salary - monthly salary x 12,2 - commission, bonus, etc. - shift allowance, on-duty remuneration - travel time remuneration - holiday pay on variable salary portions - entirely free board and lodging Max. 7,5 ibaNo ceilingMax. 30 iba Overview ITP 1 Pensionable salary - gross salary paid in cash per month No ceiling

Salary terms - sickness Sick paySickness benefitSickness compensation SalarySalary calculated 12 months ahead (SGI x 0,97) Gross income (PGI) Employment benefits according to collective agreement Overview

Overview fora.se afaforsakring.se tsl.se finfa.se collectum.se alecta.se trr.se

Law IncidentCompensation Illnesssick pay sickness benefit activity and sickness compensation Work injurywork injury insurance Retirement pensionincome / premium pension supplementary pension guarantee pension Survivors’ pensionadjustment pension extended adjustment pension child pension Unemployment unemployment insurance - basic amount - income-related Overview

Wage earners - agreements IncidentPrecondition SicknessAGS Work injuryTFA Retirement pension Death SAF-LO Collective Pension DeathTGL Work shortageCareer readjustment insurance Parental leaveFPT Overview

Salaried employees - agreements IncidentPrecondition Sickness Retirement pension Death ITP Work injuryTFA DeathTGL Work shortageReadjustment agreements Overview

Summary - Wage Earners Overview age 55 Early drawing age 55 Phasing out ASL age 25age 65 SAF-LO collective pension (temp/lifelong) Statutory pension Defined premiums AGS TFA TGL Working hours as well as travel to and from work Career insur. Career readjustment support age 40 AGB 24 FPT

To consider – wage earners Incident New employees Report all newly employed wage earners to Fora Information Which insurance schemes are included in employment Pension alternatives according to information from FORA Illness Notify illness to FK in the case of illness > 14 days Notify certification of employment status to AFA Insurance In the case of sickness compensation, inform as to which insurance applies until reaching the age of 65 Work injury Obligation to notify Försäkringskassan FK Certification of employment status to AFA Insurance Parental leave Certification of employment status to AFA Insurance Overview

To consider – wage earners (con’t) Incident Death Certification of employment status to AFA Insurance Work shortage Certify employment status and give reason for personnel decreases to AFA Insurance Notification to be done within 2 years Redundancy Report to FORA that emloyment is terminated at the annual reporting time Pension Each insurance company contacts the employee 3 months before retirement Work after the age of 65 Trygghetsförsäkring vid arbetsskada, TFA, remains in effect but no premiums are paid after the age of 65 Tjänstegrupplivförsäkring, TGL, continued in effect but no premiums are paid after the age of 65 Agreement with wage earner on whether Avtalspension SAF-LO will continue after the age of Overview

Summary - salaried employees ITP 1 Overview Health insurance age 18 age 25 age 55age 65 ITP (temp / lifelong) Defined premiums Early drawing ITP 1 TGL TFA age 18 age 55 Phasing out Working hours as well as travel to and from work age 70 Statutory pension Career readjustment support age 40 AGE TRR

Summary - salaried employees ITP 2 Overview TGL age 70 age 62 Statutory pension Phasing out Health insurance age 18 age 28age 55age 65 ITPK (temp / lifelong) ITP - retirement pension ITP - family pension > 7.5 iba ITPK Early drawing ITP 2 TFA age 18 age 55 Working hours as well as travel to and from work Final payment ITP (temp / lifelong) Benefits/defined premiums Career readjustment support age 40 AGE TRR

To consider – salaried employees IncidentITP 1ITP 2 New employees Notify Collectum - All salaried employees over the age of 18 regardless of emplyment status Report gross salary paid every month Notify Collectum - all probationary employment from the age of 18 - for limited employment, report after 3 months Parental leave See the collective agreement for salaried empolyees Waiver of premium insurance pays the pension for 13 månader See the collective agreement for salaried empolyees Reccomendation to retain ITP for 11 months Overview

To consider – salaried employees (con’t) IncidentITP 1 and ITP 2 Information Which insurances are included in empoyment as well as beneficiaries in Tjänstegrupplivförsäkringen, TGL ITP 1 and ITPK-choices according to information from Collectum Illness Notify illness to FK in the case of illness > 14 days Notify illness to Collectum in the case of sick leave exceeding 90 days In the case of sickness compensation - inform that the insurance applies until reaching the age of 65 Work injury Obligation to notify to FK Certification of employment situation to AFA Insurance Death Report to Collectum Report to TGL company Overview

To consider – salaried employees (con’t) IncidentITP 1 and ITP 2 Work shortage Notify Trygghetsrådet, TRR, within 2 years Redundancy Unsubscride salaried employee ITP/TGL with Collectum and other TGL companies other than Alecta Pension Each company contacts the employee approx. 3 months before retirement Work after the age of 65 Trygghetsförsäkring vid arbetsskada, TFA, remains in effect but no premiums are paid after the age of 65 Tjänstegrupplivförsäkring, TGL, continued in effect but no premiums are paid after the age of 65 Agreement with wage earner on whether Avtalspension SAF-LO will continue after the age of Overview