The Swedish Pensions Agency has been asked by the government to begin work on introducing an automatic stabiliser to distribute surpluses in the income pension system.

It follows an agreement by the Swedish Pensions Group made in August this year to introduce a surplus mechanism, known as a ‘gas’.

This new feature complements the existing automatic stabiliser, or ‘brake’ (bromsen), which limits income pension increases during economic downturns when assets fall or contributions drop, and is lifted once the economy recovers.

The brake and gas apply only to the income pension and do not affect premium, occupational, or guarantee pensions.

The Pension Group, in which all parties in the Riksdag are represented, agreed that surpluses in the income pension system should be distributed when the system's assets exceed its liabilities by more than 15 per cent.

The government is aiming to introduce the mechanism from 1 January 2027.

Social Security Minister, Anna Tenje, said: "It is reasonable that surpluses in the pension system should benefit pensioners and pension savers. This assignment is an important step towards a more equitable and sustainable pension system.”

The SPA has been tasked with undertaking preparatory work, primarily within IT development.

It has a deadline of December 2026 to report on the assignment to the government.

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