Pensions
Members of Group management resident in Sweden shall normally be covered by the ITP (supplementary pensions for salaried employees) plan for that portion of salary up to 30 income base amounts and, for fixed salary in excess of that, by a defined contribution pension plan.
Those members of Group management who are based abroad shall primarily be covered by defined contribution pension solutions,with pensionable salary based on their fixed salary amounts.
The minimum retirement age for members of Group management is 62.
President
The President's retirement age is 62 and he is covered by the ITP plan on salary up to 30 times the income base amount. The President's ITP plan shall be fully funded at age 60. In addition, the Company pays a pension premium amounting to 40 percent of fixed salary above 30 times the income base amounts to a pension plan of his choice.
Other members of Group Management Team
For those seven members of Group Management Team who are residents in Sweden, all but one are subject to terms and conditions in accordance with the principles noted above under the principles for remuneration. One Group Management Team member is covered by a defined benefit plan with the retirement age of 60. Two members of the Group Management Team are residents abroad. Of the two, one is covered by a defined benefit pension plan, with a retirement age of 65 and the other is covered by a defined contribution pension solution, with a retirement age of 62.
Funding of pensions commitments
For members of Group Management Team resident in Sweden, pensions on salary portions of up to 30 income base amounts are funded in PSF, the Swedish Match Superannuation Fund. For members of Group Management Team resident abroad, defined benefit pension commitments are funded in local pension foundations. All pension benefits are vested benefits.