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The CEO has a defined contribution pension based on an annual payment, to be paid by the company, amounting to 40% of the fixed salary, and in addition to the agreed contribution the basic pension benefits in the ITP plan, with retirement pension benefits limited to a maximum salary income of 7.5 income base amounts.
The retirement age for the CEO is 65. Four of the other senior executives in Sweden have a combination of defined benefit and defined contribution pension plans that entitle the executives, on reaching the age of 60 or 65, to receive a retirement pension (including national pension benefits) of up to 45% of the average salary (excluding variable remuneration) three years prior to retirement age. For full pension, the individual must have been employed for at least 20 years calculated from 40 years of age.
Upon termination of employment prior to reaching retirement age, a paid-up policy is received for pension payments from age 60 or 65, on condition that the executive, after reaching the age of 40, has been employed in the Group for at least three years. In addition, beneficiaries’ pension amounts to about 50% of retirement pension. In addition to the defined benefit pension, a pension is paid based on contributions paid by the company. The contributions paid for each year of service amount to 10% of the executive’s fixed salary and are invested in a fund or traditional insurance chosen by the executive.
Four senior executives in Sweden have a defined contribution pension plan (in addition to national pension benefits) into which the company pays 30 to 40% of the executives’ fixed salary, which is invested in funds or traditional insurance. Five senior executives are employed in companies outside Sweden, of whom three executives are encompassed by defined contribution pension plans and two by defined benefit pension plans.