KAP-KL

KAP-KL – Collective agreement pension – applicable to employees in municipalities and county councils born 1938 or later. KAP-KL applies from January 1 2006 and replaces the PFA pension agreement. From January 2014, KAP-KL applies to employees born 1985 or earlier. KAP-KL is closed for new admission in 2023. KAP-KL only applies to employees who were not obligatorily switched to AKAP-KR in 2023 or who voluntarily chose to switch to AKAP-KR. Employees in regional and local federations are also covered by KAP-KL, as well as employees in municipal companies belonging to the Sobona employers' association.

KAP-KL benefits

KAP-KL includes:

• defined contribution retirement pension

• defined benefit retirement pension

• pension for surviving adult and children

Pensionable salary and income

 KAP-KL defines pensionable salary as

• cash payment of salary

• loss of wages because of absence due to sick leave, accident, industrial injury, parental leave and union work.

For the defined contribution pension, the calculation of premiums is based on the cash payment of salary including the applicable loss of wages. For the defined benefit pension, the pensionable income is based on the five highest annual salaries during the seven years prior to the employee retiring or being eligible for sickness benefits or activity grants.

Defined contribution retirement pension

The employer allocates a certain percentage of the employee's salary every year to the defined contribution retirement pension. The benefit is earned by all employees from the age of 21.

The contribution is 4.5 percent of salaries up to 30 income base amounts. The employee may choose to invest the contribution

• in life management or fund management

• with or without repayment cover.

If the employee makes no choice, the contribution is invested with KPA Tjänstepensionsförsäkring AB in a traditional pension insurance with repayment cover.

The employee can make a new choice of future pension payments at any time.

The pension with defined contributions can be paid out from the age of 60. The employee chooses if he/she would like lifelong payment or payment during a certain period, minimum ten years. If the pension contribution is lower than 1 percent of the income base amount that year, your employer will instead pay you the corresponding amount as salary.

Defined benefit retirement pension

The defined benefit retirement pension is earned by all employees who, during a calendar year, have

• a pensionable salary in excess of 7.5 income base amount

• a pensionable income in excess of 7.5 income base amounts.

The defined benefit retirement pension is earned from the age of 28 and up to the age of 65. Eligibility for defined benefit retirement pension requires a period of service of 30 years.

The percentage benefit level is dependent on the employee's year of birth.

The defined benefit retirement pension is a lifelong payment paid out no earlier than from the age of 61 and is credited with the period of service equivalent to the employee remaining in employment up until the age of 65. The pension is reduced or increased by 0.4 percent for each month before or after the age of 65 that the pension is paid out.

Pension for surviving adult and children

A surviving family member of the employee at the time of death may be eligible for survivors' pension. The benefit also includes a post-cover of six months. The benefit is not dependent on period of service.

Pension to surviving adults is paid out for a period of five years.

Child's pension is paid out until the month the child turns 18 or, if studying, until June of the year in which the child turns 20.

If there is more than one eligible child, the pension is multiplied by the relevant factor below and the final pension amount is then allocated equally between the children.