/Entry into force: 2017-05-01/

Chapter 1. The law's content



section 1 of this Act provides for the pension Agency's application of the insurance business and accounting rules. The Act also has provisions on supervision over the Agency.



The basic provisions on the pension Agency's details are included in the social insurance code.



Chapter 2. Technical provisions



Insurance technical provisions scope



section 1 the Pension Agency's technical provisions shall correspond to the amount required for the authority at any time to meet all commitments that can reasonably be expected to arise by reason of the insurance business in the premium pension system.



Technical provisions shall correspond to the Agency's accountability for



1. insurance cases, administrative costs and other costs during the remainder of the contract period for current insurance in life insurance business (life insurance provision),



2. occurred claims outstanding, the costs of regulation and bonuses payable but not paid out (claims), and



3. unit-linked insurance as pension savers are the investment risk for (the Fund Insurance commitments where the investment risk is pensionsspararen).



Calculation of the life insurance provision



section 2 of the life assurance provision consists of the expected present value of future cash flows that may arise on account of pension commitments. It will be calculated with a relevant risk-free interest rate structure.



paragraph 3, the calculation of the life assurance provision shall be based on assumptions of risk measures, interest rates and operating costs alone are responsible, reliable and objective.



Actuary



section 4 of The who to carry out technical investigations and calculations of pension activities shall have knowledge of insurance and financial mathematics which is sufficient with respect to the data. Investigations and calculations should be done under the supervision of one or more actuaries, who will have the insight and experience that is required with regard to the scope and nature of the pension business.



Chapter 3. Funding and investment of assets



Liability coverage in insurance business



section 1 the Pension authority shall have assets for liability coverage equal to an amount corresponding to the technical provisions.



Surplus target



section 2 of the Pension authority shall, in addition to the assets required for liability coverage under section, have assets amounting at least to a general government surplus objective.



The surplus target should be calculated on the basis of comprehensiveness and art and is defined in the pension Agency's technical guidelines.



Diligence



paragraph 3 of the assets shall be invested prudently in accordance with paragraphs 4 to 8.



Assets that meet the technical provisions



4 § assets that meets the technical provisions should be invested in a manner appropriate to the nature and duration of the contract.



Risk control



5 § Investments may only be made in those financial instruments and other assets whose risks Pension authority can identify, measure, monitor, manage, control and report.



Risk diversification



section 6 of the investments in financial instruments and other assets should be made so that an appropriate risk diversification can be achieved.

All assets shall, with regard to insurance obligations and changes in assets ' future value and yield are invested so that the payment capacity is satisfactory and the expected yield is sufficient.



Derivative instruments



7 § derivatives may be used only to reduce the risk or to otherwise improve the management of the Authority's assets and liabilities.



Unlisted assets



section 8 investments in financial instruments and other assets which are not admitted to trading on a regulated market should be kept to prudent levels;



Restriction on ownership of shares



§ 9 the pension authority shall not acquire as many shares in a Swedish limited liability company, whose shares are admitted to trading on a regulated market or an equivalent market outside the European economic area, to the votes for them along with the other shares in the same companies exceeds five percent of the votes for all the shares in the company.



Chapter 4. Guidelines and bases



Technical guidelines



section 1 the Pension authority shall establish and comply with technical guidelines. The guidelines should contain principles 1. premiums and benefits are determined,



2. insurance technical reserves and surplus target is calculated,



3. insurance the repurchase,



4. refunds to pension savers and other eligible beneficiaries,



5. amount to be paid is determined,



6. consolidation level is controlled, and



7. the deficit is covered.



With the level of consolidation refers to the ratio between the assets ' market values and allocated to defined values. Allocated to defined values represent the sum of the guaranteed commitments and tentatively allocated (provisioned) bonuses.



section 2 of the technical guidelines shall be submitted to the financial supervision authority not later than on the day they begin to be used.



Together with the guidelines, a statement of the implications of the guidelines, for authority and for pension savers and other eligible because of insurance.



The first and second subparagraphs shall also apply when modifying the technical guidelines.



Technical bases



section 3 A technical base to complement and further specifying the principles set out in the technical guidelines under section 1.



Calculation shall include at least the descriptions of



1. the calculation formulas and methods used, and



2. the calculation parameters included in calculation formulas.



Investment guidelines



section 4 of the Pensions Authority shall establish and follow investment guidelines. The guidelines should contain principles for placement of a totality of assets and particular account principles for placement of assets corresponding to the technical provisions.



Chapter 5. Accounting



section 1 of the Pension Agency's annual report, a special report for funded activities included. For this report, the following provisions of the Act (1995:1560) on the annual accounts of insurance undertakings apply:



– Chapter 1 2 § if references to annual accounts Act (1995:1554),




– Chapter 1 3 § if some definitions,



– Chapter 2. § 1 if obligation to bring in a profit analysis in the annual report,



– Chapter 2. section 2 of the annual report content, etc. with regard to the references to the provisions in Chapter 2. 1-6 of the annual accounts, with the exception of what is stated on the balance sheet,



– Chapter 3. in the case of policies on the income statement,



— Chapter 4. section 1 if the valuation rules with regard to the references to the provisions in Chapter 4. 14 (a) and 15 (a) of the annual accounts Act,



— Chapter 4. 2 § 12 – 14 about how the valuation rules to be applied to an insurance company assets,



— Chapter 4. 4 – 9, §§ if valuation rules,



– Chapter 5. 1 section of notes, etc. with the exception of the references to Chapter 5. 3, 4, 8, 11, 12, 16, 20, 21, 25, 28-30, 34, 36 to 45 and 48 of the Swedish annual accounts Act,



– Chapter 5. 2-5 paragraphs of notes, etc., and



– Chapter 6. 2 and 3 sections on annual reports and performance analysis.



If the authority representing the State as the owner of one or more companies, in which the State has such an influence as specified in Chapter 1. paragraph 4 of the first, second or third subparagraph, the annual accounts Act, the authority shall also draw up consolidated financial statements pursuant to the provisions of such report in Chapter 7. 2-4 of the law on annual accounts of insurance undertakings.



For the purposes of the provisions referred to in the first and second subparagraphs shall Pensions Authority is considered as a life insurance company. The associates shall refer to companies in which the State has such an influence as specified in Chapter 1. 5 and 5 a of the Swedish annual accounts Act, regarding the authority representing the State as owner. What is being said about the company's Executive Director shall refer to the Authority's Executive Director.



section 2 of the special accounts for pension operations shall be submitted to the financial supervision authority as soon as possible and at the latest within six months from the end of the calendar year.



Chapter 6. Supervision and intervention



section 1 the Pension Agency's insurance business in the premium pension system shall be under the supervision of the Swedish financial supervisory authority.



section 2 of the Pension authority shall provide the financial supervision authority the information about their pension activities as the inspection request.



section 3 of the Board and the Agency's Director, at the time the FSA decides to keep the pension Agency's assets, accounting and other documents relating to the pension operations available for review by senior management of the inspection or any other inspection has decreed.



paragraph 4 of the financial supervision authority may convene the pension Agency's Management Board.



Representatives of the inspection may be present at such Board meeting that the inspection has convened and participate in the deliberations.



paragraph 5 of the Pensions Authority, with fees help to cover the costs of the FSA's activities.



paragraph 6 of the financial supervision authority shall intervene if



1. the Pensions Agency has breached its obligations under this Act, or regulations governing the Authority's pension business, or under the Agency's technical guidelines, bases or investment guidelines,



2. the technical guidelines or the base is no longer satisfactory with regard to the scope and nature of its activities, or



3. insurance portfolio is not sufficient for the necessary risk equalisation.



section 7 of the Intervention under section 6 is made by



1. order to make correction within a certain time,



2. prohibition to execute the decision, or



3. note.



paragraph 8 of the financial supervision authority may refrain from action if



1. a breach is minor or excusable,



2. Pensions Authority makes the correction, or



3. any other authority has taken action against the Pension authority and these measures are deemed inadequate.



Chapter 7. Additional provisions for the insurance business in the premium pension system



Management of surplus



section 1 of the Surplus that occurs in the pension Agency's insurance business in the premium pension system should be applied to pension savers in the form of bonuses. Surplus funds may be used only if it can be done without risk the Agency's ability to pay the premium pensions who are entitled to pension savers. The surplus funds are to be used at a rate that promotes a smooth development of premiepensionerna over time.



The distribution of dividends between pension savers should be made taking into account the extent to which the funds managed on behalf of each pensionssparares has contributed to the emergence of the surplus.



Information



section 2 of the Pensions Authority shall ensure that pension savers will get access to the information they need to take to be their right in the premium pension system.



Chapter 8. Appropriations



section 1 of the Government or the authority that the Government may provide for



1. the calculation of technical provisions and insurance content according to Chapter 2. 1-3 sections,



2. What is sufficient knowledge with regard to the data of persons carrying out technical investigations and calculations and what insight and experience for Actuaries in accordance with Chapter 2. paragraph 4,



3. the use of derivative instruments pursuant to Chapter 3. 7 §,



4. What technical guidelines pursuant to Chapter 4. § 1;



5. what a statement pursuant to Chapter 4. section 2 of the second paragraph should contain, 6. what the actuarial calculation basis according to Chapter 4. paragraph 3 shall include,



7. what investment guidelines pursuant to Chapter 4. 4 § should contain, and



8. what information the pension authority shall submit to the financial supervision authority pursuant to Chapter 6. 2 § and when these should be provided.



The Government may provide for such charges as referred to in Chapter 6. § 5.



section 2 of the Government or the authority that the Government may provide for derogations and exemptions in individual cases from the provisions set out in Chapter 2-4. and Chapter 5. Article 1, first and second subparagraphs.



Chapter 9. Appeal



section 1 of the FSA's decision pursuant to Chapter 6. paragraph 4 may not be appealed.



Other decisions by the Swedish financial supervisory authority in individual cases under this Act may be appealed to the administrative court.



Pensions Authority may appeal against the decision of the financial supervisory authority referred to in the second subparagraph.



Leave to appeal is required for an appeal to the administrative court.