New Graduated Pension System in Sweden

A MAJOR addition to the Pension program of Sweden has been made by three new laws, all enacted on May 14, 1959. The principal law, known as the General Supplementary Pensions Insurance Act, establishes a system of supplementary pensions, which will be payable in addition to the universal flat “national pensions” provided in the past. The amounts of the supplementary pensions are to be graduated on the basis of earnings and will be pagable with respect to old-age, invalidity, and death. The second law, containing a singIe clause, Axes the contribution rates payable by employers during the first 5 years of the program. The third law deals with the administration of the general pension fund that will be built up under the new program. The effective date of the new legislation is January 1, 1960, when contributions will begin. Supplementary pensions will first become payable in 1963.