Calculation of pension liability
Page changed Wednesday, June 22, 2011
PRI Pensionsgaranti can help you to estimate the value of pension obligations for both ITP and the company’s own plans. We do it according to Swedish (Security Act) and international (IAS 19) accounting rules.
As an alternative to a normal insurance, your company can choose to enter pension as a liability in the book reserve method. By doing this, you do not have to pay premiums to the insurance company. On a long-term perspective, capital can be built up and used for investments.
What can be managed in the book reserve method?
The largest liability is ITP 2, but there are companies that enter ITP 1 as a liability. The ITP 2 liability is identical to ITP 2 that is to be insured, making it different from ITP 1 where companies adjust the method to suit their company and employees. Even executive pensions are increasingly entering as a liability. This is due to the managers’ pensions that are now more easily linked to the performance of the company.