SWEDEN - SPP, one of the largest pension insurers in Sweden, will not be eligible to deliver pension investments via the country's ITP pensions administration system next year.
Collectum, the administrative company for ITP, is currently sifting through tenders for companies to be included as pensions providers for the next four-year period starting July 1, 2010.
However, SPP is no longer going to be part of the ITP system which serves white-collar workers. So the 45,000 who selected SPP as their pension provider will now be forced to make another choice.
Ingrid Wrebo, product and business development director at SPP, said the firm will not be on the list of eligible pension fund providers because active managers were favoured.
She said SPP's fee structure remains competitive but argued this was not why SPP will no longer be a provider through the ITP system.
She argued it is a regrettable situation for clients as the firm believes that by forcing individuals to make yet another choice, and at the same time limiting the number of providers, the clients' prospects of getting the best possible pension is reduced.
In the current tender round, Collectum received 16 applications for managing ITP pensions. The final list of eligible companies is not yet published.
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