ITP 2 – for white-collar workers born in 1978 or earlier
Page changed Tuesday, June 21, 2011
ITP 2 is a defined benefit pension plan that can be funded by letting your company account for individual pension liabilities.
ITP 2 in book reserve method is stated as a liability on the balance sheet or put into a pension foundation.
ITP 2 in book reserve method should, according to the ITP contract, be credit insured and administered by PRI Pensionsgaranti.
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What is the ITP 2 in book reserve method?
Retirement pensions in ITP can be financed and secured in two ways. Either your company takes responsibility for your retirement pension by entering your pension obligations as a liability, or your company will buy the insurance with Alecta.
Entering the pension as a liability on the balance sheet is an excellent and long-term financial method. The majority of Sweden’s largest companies have used this method since the ITP plan was introduced in the 1960s.
By choosing the ITP 2 in book reserve method as a way of funding for ITP retirement pension, it is possible to dispose the pension capital until the company has to disburse the pensions. In this way, the pension capital works in the same way as a long term financial source, whilst at the same time securing the pensions of the employees. If the company, on a long term perspective, achieves a good return on the pension capital, it will benefit the company.