The Swedish Pensions Agency's reporting of the pension system is by and large appropriate but risk analyses should be improved. The Swedish NAO recommends that the Swedish Pensions Agency strengthens its analysis material regarding the impact of the economy on the system’s financial result and the pension system’s key features.
The Swedish Pensions Agency presents an annual actuarial report on the national pension system, which is called the Orange Report. The report presents and explains the financial position of the national income-based pension. The Pensions Agency also presents future scenarios for the system’s long-term development.
The actuarial accounting constitutes an important component of the reformed pension system. The income-based pension system is separate from the central government budget and is estimated to be financially sustainable as long as future pension payments can be funded through both future pension contributions and the financial assets in the system. To ensure that these conditions are fulfilled, the pension system has been equipped with a balancing mechanism, called the brake, which holds back indexation of pension balances and pension payments when the condition is not met. Since the risks in the autonomous pension system are borne by the insured, the presentation in the Orange Report constitutes an important description of how the financial sustainability of the system affects pension levels for current and future pensioners.
The Swedish NAO has audited the Swedish Pensions Agency's reporting of the financial position of the national income-based pension at the close of 2015 and the future scenarios for the pension system’s long-term development. The Swedish NAO considers that the overall presentation in the Orange Report is appropriate and contains valuable information on factors that affect the financial performance of the pension system for the financial year. At the same time, some areas have been identified in which the Swedish NAO considers that the reporting needs improvement. [...]
Press contact: Olle Castelius, phone: +46 8-5171 40 04.
Presskontakt: Olle Castelius , telefon: 08-5171 42 06.
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