The government in Sweden has produced and submitted a bill to parliament that would allow surpluses in the income pension system to be distributed among members and pensioners.

In August 2025, the Pension Group, which includes representatives from all parliamentary parties, reached an agreement to introduce measures so surpluses can be shared and pensions increased.

The group agreed that dividends would be paid out when the assets in the income pension system exceeded liabilities by more than 15 per cent.

This level was based on a ‘precautionary principle’ to ensure the risk of pension reduction was not increased more than necessary.

Following the agreement, the government produced a bill that has now been submitted to parliament.

The legislative amendments have been proposed to come into force on 1 August 2026, and to be applicable from 2027.

“In the same way that there is a brake in the pension system in bad times, it is both right and fair that there is a throttle in good times,” said Minister for the Elderly and Social Insurance and Pension Group chair, Anna Tenje.

“There is no intrinsic value in large surpluses building up over time that never benefit pensioners and pension savers. That is why we are now moving forward with the proposal for a so-called gas to be able to do just that.

“In order for the pension system to be financially stable in the long term, there are currently rules to slow down the annual pension increases when there is a deficit in the income pension system.

“In recent years, finances have stabilised and there is now a surplus in the income pension system instead.

“Rules for surplus distribution are therefore being introduced, in order to avoid unnecessary savings in the system and to allow the surplus to benefit pensioners and pension savers.”

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