Sweden’s premium pensions system (PPM) has finally been launched – albeit a year behind schedule – amidst a blitz of publicity. For the first time, millions of Swedes will select investment funds for a 2.5% portion of their social security pensions provision.
Some 455 funds are now on offer in the PPM catalogue, which has been sent out first to the northern regions of Sweden, with a staggered postal arrangement meaning that different parts of the country will receive the documentation in stages.
One fund manager though has already been withdrawn from the funds’ offering, according to Mattias Johansson, information officer at the PPM in Stockholm. “A fund manager has left the system, which is Lazard. I’m not sure about the grounds for their leaving. In total we now have 70 managers in the system trying to attract people to their funds.”
Johansson cites possible registration issues, including a change to the fund or a fund merger as possible reasons for the withdrawal.
Rumours have also circulated in the Swedish press about teething problems with the PPM computer system.
Johansson, comments: “When you start a big computer system there are always a few small problems that you have to fix. I don’t think there has ever been any launch of this size of system where nothing has gone wrong, but there are no major problems. Overall the process is running smoothly.”
The new Swedish pension system is taken from payroll taxes to the tune of 18.5% with 16% going toward guaranteed retirement income and 2.5% to the PPM.
Selection forms must be returned from the six chosen regions a month after they are received with the return schedule running from October 15 in the Norrbotten region through to November 19, when Swedes in southern and eastern Götaland must send back their choices.
The PPM system uses a web-based communication system called Focus.
For conducting trades and receiving unit prices once the system is up and running managers have been given a timetable for the fund orders.
At 9.30am trade orders will be shown for managers regarding the day’s buys and sells. By 10am the managers have to confirm they have received the trade orders.
One pm is the time for contract notes regarding the last day’s trade have to be filed with the PPM. And by 6pm the day’s unit prices will start to be registered.

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