SWEDEN - The Swedish government has introduced a bill in parliament to implement the EU directive for occupational pensions.
The Ministry of Finance said the underlying principle of the directive, and the Bill to the Riksdag, is the prudent person rule, which targets the decision-making process of the individual institution.
“The new regulations, which implement the European Directive on the activities and supervision of institutions for occupational retirement provision, represent the first step towards more modern and risk-based insurance regulation,” the Ministry said.
“In the Bill to the Riksdag, the government proposes that the institutions should invest their assets in a prudent manner. Technical provisions corresponding to pension commitments should be based on a market valuation of these commitments. In addition, new operating terms are proposed as well as special provisions on information to beneficiaries.”
Sven-Erik Osterberg, minister for local government and financial markets, said: “We are laying a firm foundation for stronger occupational pensions, while ensuring consumer protection for pensioners.” The Bill covers “friendly societies that provide occupational pensions, pension foundations and the occupational pension business of life assurance companies,” the Ministry said.
The new regulations are due to come into force on January 1, 2006.
In another proposal, Finansinspektionen, the Financial Supervisory Authority, will be made responsible for supervising the financial operations of pension foundations.
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