Information about SPP funds in mid-May

Information about SPP funds in mid-May In the middle of May, 43,000 companies which are clients of the SPP Group will receive a letter containing a summary of the rules that apply to utilisation of SPP's surplus funds, known as client company funds. This summary has also been available on SPP's website since 28 April. A total of approximately SEK 75 billion will be allocated. In October 1999, each company received notification of the amount allocated to them from these funds. A first cash payment can start on 31 August. Use of the funds for payment of current ITP premiums can start on 1 November and for payment of other premiums on 1 December. If the funds are used for premium over and above the requirements of the ITP Plan, a cash payment can also be made starting on 1 December. The initial cash payment will be the highest of the following three amounts: * SEK 100,000 or such lower amount that corresponds to the employer's client company funds * 20 per cent of the employer's client company funds * The employer's premiums for early retirement pensions and FPG/PRI redemption during the period 1 July 1998 - 30 November 2000. Companies can pay for 80 per cent of premiums for life and sickness insurance with client company funds. Insurance can be taken out with any insurance company or insurance association, provided the premium is for ITP-insured employees or former employees. It is the employer who has the right to dispose of the funds. In some cases, a decision must be made in consultation with employee representatives. One basic requirement is that the employer has a pension contract with the parent company Försäkringsbolaget SPP or its subsidiary SPP Liv. Additional, detailed information about the rules and administrative routines will be sent to client companies in mid-June. For additional information Björn Nilsson, Senior Vice President, SPP, tel. +46 8 441 61 10 Klas Råsäter, Senior Vice President, Corporate Communications, SPP, tel. +46 8 441 69 75 A summary of the rules can be found at www.spp.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/28/20000428BIT00990/bit0001.doc http://www.bit.se/bitonline/2000/04/28/20000428BIT00990/bit0002.pdf