Sweden's political parties have reached a historic agreement to introduce a 'gas' mechanism in the pension system, potentially increasing pensions by approximately 100 SEK per month during prosperous economic times. This decision, set to take effect in January 2027, aims to balance the existing 'brake' that reduces pensions in tough times. While welcomed by pensioner organizations, the proposal faces criticism from labor unions for not going far enough.
Swedish Parties Agree on Pension System 'Gas' Boost
Swedish Parties Agree on Pension System 'Gas' Boost
Sweden's political parties have reached a consensus on introducing a so-called 'gas' in the pension system. In practice, this means an increase of approximately 100 SEK per month in pensions.
– We have made a historic decision, says Social Insurance Minister Anna Tenje.
The parliamentary pension group has agreed on this 'gas' mechanism, first reported by Expressen.
This was confirmed by the parties at a press conference on Tuesday. In short, it means that pensioners will receive more money during prosperous economic times.
Currently, there is only a 'brake' in the pension system, which results in less money during tough times. Now, all parliamentary parties have agreed that it is logical to also have a 'gas' in the system, which is proposed to come into effect in January 2027.
100 SEK More Per Month
The proposal will practically mean about 100 SEK more in pension per month, according to a source with insight into the pension group.
The issue of introducing a 'gas' in the pension system has been driven by the Social Democrats, the Moderates, pensioner organizations, and several trade unions.
– We have made a historic decision that will eventually put more money in the pockets of today's pensioners – but also tomorrow's pensioners and pension savers, says Social Insurance Minister Anna Tenje (M) at the press conference.
LO Criticizes: 'Betrayal Against Workers'
The National Pensioners' Organization, PRO, welcomes the 'gas' in the pension system.
– That pensioners should receive reduced pensions when the pension system's finances are weak but not receive increased pensions when the system is economically strong is unjust. But today's announcement is not enough to realize the significantly increased pension that PRO wants to see, says PRO's chairperson Åsa Lindestam.
LO is critical of the surplus level proposed for the 'gas' to take effect – arguing that it is too high.
– It is a betrayal against workers who have helped build our country. They could have received more money here and now from the pension system, says LO's chairperson Johan Lindholm.