Saab Pension Fund
The predominant plan in Sweden is the ITP plan under collective agreements between the Confederation of Swedish Enterprise and the Negotiation Cartel for Salaried Employees in the Private Business Sector (PTK). The ITP2 plan, which is based on an employee’s final salary, covers individuals born 1978 and before and is a defined-benefit plan, while the ITP1 plan is a defined-contribution plan and covers individuals born 1979 and after.
Saab’s defined-benefit pension plans in Sweden either are secured through transfers to the Group’s own pension fund, as liabilities in the balance sheet or are funded through insurance mainly with Alecta. The Saab Pension Fund, which secures part of the ITP2 plan, had assets of MSEK 6,741 (6,051) as of December 2019, compared to an obligation of MSEK 11,235 (9,939), calculated according to IAS 19, which means that the solvency margin amounted to 60 per cent (61%).
Shareholder Rights Directive
Saab Pensionsstiftelse has chosen not to adopt principles for shareholder rights directive to § 10e (1967: 531) om tryggande av pensionsutfästelse etc. due to:
- Investments through direct ownership, or discretionary management of listed shares are not included in the investment strategy.
- The pension fund invests passively in funds that have been chosen for providing an expected return and risk level that is in line with the pension fund's investment strategy.
- The Foundation continuously evaluates holdings in equity funds from; return, costs in the form of total cost.