Pensions and severance packages after the assignment as a member

Severance packages after the assignment as a member

After concluding an assignment as a member of the Riksdag, a period of transition to ordinary working life begins. During this period, former members who have not yet reached the age of 66 are offered financial support. The purpose of this support is to create financial security during the transitional period that follows after leaving the Riksdag. It is not intended to be a long-term means of support. There are two different systems of severance packages for members of the Riksdag who conclude their assignment; the new system of financial redeployment support and the old system of guaranteed incomes.

In addition to financial support, the members also have access to other support in the form of careers advice and continuing professional development. The support that is offered corresponds to measures available through the labour market, for example, through the Job Security Foundation and the Council for Redundancy Support and Advice.

Decisions concerning the right to a guaranteed income or financial redeployment support are made by the Riksdag Remunerations Board. Members are required to submit an application for payment to the National Government Employee Pensions Board in order to start to receive the severance package. They are also required to enclose an income statement with preliminary information about any other sources of income. The National Government Employee Pensions Board then pays out the support.

Financial redeployment support – the new system

The system for financial redeployment support applies to all members elected at the 2014 parliamentary elections or later. The purpose of the new system is to make it easier for those leaving their assignment as members of the Riksdag to return to working life.

In order to receive the support, the member must have served for a continuous period of at least one year. The period served as a member of the Riksdag determines how long members can then receive the support, but it is payable for a maximum period of two years.

Members who are entitled to financial redeployment support receive 85 per cent of their pay as members. If they have other sources of income, there are rules concerning how much the support is reduced by.

The redeployment support is pensionable. It does not entitle the recipient to earned income tax credit.

Under certain conditions, or if there are special grounds for doing so, the support can be extended. The extended support can amount to a maximum of 45 per cent of the members' pay and is not pensionable. The support is not paid out after a member has reached the age of 66.

Guaranteed income – the old system

The guaranteed income system applies to members of the Riksdag who were elected or who were appointed as alternate members before the 2014 elections. Members returning to the Riksdag after 2014 and who have previously received a decision regarding guaranteed income are also covered by the guaranteed income system. In order to receive the support, the member must have served in the Riksdag for a continuous period of at least three years.

How the guaranteed income is calculated

The guaranteed income is calculated on the basis of the members' basic pay together with any increments the member received when he or she left the Riksdag. During the first year, the guaranteed income is 80 per cent of the basis. From the second year, the income is lower. The guaranteed amount depends on how many years the former member has served in the Riksdag, but at most members can receive 66 per cent of the basis from year two. As from the seventh year, the guaranteed income is calculated solely on the basis of the basic pay.  

How long a former member receives a guaranteed income depends on the member's age and how long he or she served in the Riksdag. Members who leave before the age of 66 after at least three continuous years, up to a total of six years of service, are entitled to a guaranteed income for one year.

For members who leave the Riksdag after a total of six years or more, of which three have been continuous, the length of the period of guaranteed income depends on their age when they leave:

• two years for former members under the age of 40;
• five years for former members over the age of 40 but under the age of 50; and
• up until the month the former member turns 66, if he or she has turned 50.

If the former member receives other income at the same time, there are rules as to how much the guaranteed income will be reduced by. The guaranteed income is pensionable for the first five years. It does not entitle the recipient to earned income tax credit.

If there are special grounds for doing so, the guaranteed income may be extended. The guaranteed income may then be lower. The guaranteed income is not paid out after the former member has turned 66.

Severance packages can be reduced or withdrawn

The financial redeployment support and the guaranteed income may be adjusted, that is, reduced or withdrawn. This may occur in the following cases:

• the former member works a considerable amount, but without reasonable reimbursement for his or her work;
• the former member runs a company but takes out a lower salary and instead sets aside the money in a tax allocation reserve, originator account, expansion fund, deficit from other business area or pension savings;
• the former member has received an income on passive business activities which include earned income; or
• the former member has been sentenced for a serious offence.

Severance packages that apply for more than a year may be also adjusted if the former member has not done enough to find a job. This does not, however, apply to members who had a valid decision concerning guaranteed income on 1 May 2014.

Support for skills mapping and careers advice

All members who are under 66 when they leave their assignment at the Riksdag are entitled to support to help them return to the ordinary labour market. The support should correspond to support provided through employee security agreements on the labour market, for example, through the Job Security Foundation or the Council for Redundancy Support and Advice. The services are individually adapted and include skills mapping and personal careers advice. Some continuing professional development may also be provided.

Pensions

A person who has been a member of the Riksdag receives an old-age pension from the Riksdag. It is possible to earn towards one’s old-age pension from the Riksdag for a maximum of 30 years, and pension is also gained after the age of 66.

The old-age pension from the Riksdag is a supplement to the national pension system which corresponds to the occupational pension that employees receive. The system has been developed to enable people to enter and leave politics without losing their future pension. The pension is paid by the National Government Employee Pensions Board.

Applicable rules

The rules that apply to leave, attendance and absence are set out in the following laws and regulations (in Swedish):

• The Act on Compensation to Members of the Riksdag (2016:1108)
• The Riksdag Board's regulations and general recommendations on the application of the Act on Compensation to Members of the Riksdag (2016:1108), RFS 2016:5(pdf, 138 kB)