What you need to know
Plan for your retirement now, so you can enjoy your life later. Build financial security with the Skandia pension plan — your future source of retirement income.
Who’s eligible
All PayPal employees, interns, and fixed-term contractors age 18 and older are automatically enrolled in the pension plan on day one.
How the plan works
When you retire, you’re eligible to receive the accumulated funds in your pension savings account. Normal retirement age in Sweden is 65 years old.
What’s included
- Pension fund — Mercer Advantage Balanced Growth default fund management
- Repayment cover
- Waiver of premium (paid on top of pension contribution)
- Disability insurance, including health insurance (paid on top of pension contribution)
If you don’t choose the default option, you can adjust your family coverage and/or choose from the following types of management:
- Fund management
- Traditional management (guarantee management)
- Equities
What is pensionable income
The definition of pensionable salary is your base salary times 12.2 (vacation pay). Pension contributions are made as follows:
| Age / Salary | 0–7.5 IBA | 7.5–30 IBA |
|---|---|---|
| 18–65 years old | 4.50% | 30% |
The income base amount (IBA) is calculated by the Swedish Pensions Agency, but it is the Swedish Government that sets the amount each year. Scroll to the bottom of the website page to find the current IBA.
Salary sacrifice
Employees with salaries above 8.07 times the income base amount (IBA) can sacrifice a portion of their salary to increase their retirement savings, since employees earn contributions to the state pension up to this amount.
PayPal also contributes to the plan. This additional contribution is calculated based on the social security fee and the specific salary tax on the occupational pension premium. This means that employees receive a percentage that is higher than the amount of the occupational pension premium that employees sacrifice monthly. Currently, this percentage is 5.76%.
- Salary sacrifice is regulated through an agreement between you and PayPal
- PayPal continues to report pensionable salary as pre-sacrifice salary for retirement pension insurance, family pension insurance, and the long-term disability insurance
- Premiums paid into this retirement savings plan cannot exceed the total amount that’s tax deductible for PayPal (maximum 35% of pensionable salary, including company pension plan premium; the cost of long-term disability cannot exceed 10 PBA per year
- The pension resulting from salary sacrifice savings can be paid out starting at age 55 for a minimum of five years
- Salary exchange can affect your social insurance benefits — discuss your options with the Mercer Helpline before enrolling
To learn more about or enrol in the Skandia pension plan, go to the HR Hub.