Sweden’s local government collective agreement has been revised to cut pension management fees for 1.2 million employees, the Swedish Association of Local Authorities and Regions (SKR) has announced.

Employees in municipalities and regions will benefit from lower fees under the changes to the AKAP-KR occupational pension scheme, improving the prospects for higher retirement outcomes over time, SKR said.

The reform has also introduced a uniform annual fee structure, aimed at simplifying the system and reducing costs for members.

In addition, the new agreement has strengthened transparency requirements, with insurers required to provide data to minPension during both the accrual and payout phases, enabling more accurate retirement forecasts for current and former employees.

SKR chief negotiator, Jeanette Hedberg, said: “The agreement strengthens the security of the occupational pension system. Lower fees and a more uniform fee structure make it easier for employees to achieve better outcomes, while the new information requirements increase transparency.”

The agreement has also introduced new requirements to improve the security and transparency of pension transfers, following an increase in capital movements.

For example, decisions to transfer pension capital must now be verified using electronic identification, while employees must receive information from both their employer and trade union ahead of any decision.

In addition, information on the right of withdrawal must be clearly presented and issued as a reminder.

The changes are intended to ensure transfers are carried out securely and that employees have access to clear, neutral and accurate information before making decisions.

Separately, the agreement prohibits links between municipal occupational pensions and other banking or insurance products, preventing providers from offering incentives, such as preferential mortgage terms, in exchange for transferring pension assets.

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