Controversial proposals for retirement savings – the Swedish newspaper svenska Dagbladet

financial markets Per Bolund and investigator Patric Thomsson presented premiepensionsutredningen at a press briefing on Monday. Photo: Anders Wiklund/TT

Monday financial markets, Per Bolund (MP), against the premiepensionsutredningen from the investigator Patric Thomsson. In just over a year has Thomsson worked on developing a proposal for a reformed premiepensionssystem, also referred to as the PPM-system.

Result:

• Savers in PPM is suggested to be forced to confirm their fund selection every seventh year. The one who fails to give a get to see their savings transferred to the soffliggaralternativet AP7Såfa. The change is expected to enter into force by 1 January 2019.
• New PPM-savers is proposed automatically to be placed in the AP7Såfa. In the day end up almost all of the new PPM-saver in soffliggaralternativet. The proposal is therefore the closest to a principled change, but the means to it will require activity to get out of there. The change is expected to come into force from 1 July 2017.

the Investigation also has significance, not least of which is the premium pension is a part of the general pension plan, which covers almost all adult swedes – and 890 billion.

Then 16 years back can the PPM-savers themselves choose how part of their pension pot should be placed in different funds. However, previous investigations have shown that of those who made an active choice when the system was launched, 20 per cent have not yet made any new options.

the Investigator Patric Thomsson is prepared to the proposal of a reminder every seven years will lead to opposition.

” It is clear that it is controversial that inaction will lead saver back to a model of governance that you once actively opted out. But our view is that it is reasonable to take an active stance with regularity, ” says Patric Thomsson, who has a background as among other things, acting general counsel at Premiepensionsmyndigheten.

hoping on a pointed proposal regarding the fondbytesavgift, caps or riskbegränsningar hoped for much. This leaves the investigators only vaguer formulations. Nor on the proposal for a new fondtorg with only a few state funds are leaving the investigation of any clear indication of the way forward.

But realized the investigation in its current form is expected to still have a major impact. Exactly how large nobody knows, but the investigators estimate that hundreds of billions of crowns will be transferred from its own portfolio to AP7Såfa. It may ultimately lead to billions moved from Swedish to foreign assets.

today has own portfolios overall a greater proportion of Swedish assets than förvalsalternativet. The investigators estimated that upwards of $ 110 billion in shares and nearly 24 billion in interest rates can be moved from Swedish to foreign assets if the proposal becomes a reality.

– There is no doubt that a utvärderingsval will have a significant impact on the fund industry. But how it strikes at the individual fund management companies or funds is too early to tell, ” says Patric Thomsson.