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Electrolux looks at funded scheme

Electrolux, the Swedish multinational group, is looking at establishing a funded pension ar-rangement to cover book re-serve provisions for its Swedish workforce.

Group treasurer Matts Ekman says that a fund could be created to meet part of the pension liabilities carried in the accounts as the PRI item. This is a decision the board will have to take," he says, "I hope they will go for a change."

He reckons the scheme, which would only apply to white-collar workers, would be on the lines es-tablished by Volvo and Telia, with a board and employee representatives.

Any scheme would continue on a defined benefit basis. Building up reserves to fund for this could have advantages in terms of cost and returns for the group, he be-lieves. At present, under the book reserve system, the liabilities on the balance sheet grow each year. But Ekman points out that a Swedish pension fund would not be the same as in the UK or US as pension obligations still remain with the company.

Swedish multinational Astra al-so confirms that it is examining the question of funding part of its Swedish pensions liabilities. Jo-kum Knuuk, based at Astra Management Resources in Zurich, says no decision has been taken, but a move could be made in 1988. "It is still an open question.""

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