SWEDEN - Swedish engineering company Sandvik has established a corporate pension fund for its employees in Sweden in accordance with the supplementary pension plan.
Sandvik’s companies in Sweden have transferred SEK1,069m, a sum corresponding to the companies’ total pension liabilities, to the new Sandvik Pension Fund. The statutes of the fund have been submitted to the local supervisory authority, the Gävleborg County Administrative Board, for approval.
The benefits of the employees will not be affected in any way by the establishment of the new fund. Sandvik’s liability toward current and retired employees is similarly unaffected.
The assets of the pension fund constitute a collateral for the Sandvik companies’ pension commitments toward salaried employees. The establishment of this collateral means that the corresponding pension liability is eliminated from the Sandvik balance sheet.
The assets of the pension fund shall be invested to generate an average return that exceeds the financial indexing of the pension liability of approximately SEK50m per year.
The assets will be invested in the Swedish and international capital markets.
By Janet Du Chenne
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