How to choose in KAP-KL
KAP-KL is the occupational pension for all employees of municipalities and county councils, as well as regional and municipal companies. Your employer pays your pension insurance premiums. But you decide yourself which type of pension insurance you want, as well as which insurance company you would like to manage it.
Make your choice at the Valcentralen website. They also provide more information about your alternatives. If you prefer not to make a choice, your pension funds will be invested in a traditional pension insurance with KPA Pension.
This is KAP-KL
Every year, your employer pays the equivalent of 4.5 percent of your salary into a pension insurance. The premiums begin the month after you turn 21.
The size of your pension will depend on the amount of money paid into it over the years prior to your retirement, how much the capital grows during that time, as well as the size of the fees charged by the insurance company. For that reason, you decide which type of insurance you want as well as which insurance company you would like to manage it.
Start by selecting insurance type
There are two types of pension insurance: traditional insurance and unit-linked insurance.
* Traditional insurance. With a traditional insurance, the insurance company decides where to invest your premiums. The insurance company invests in interest-bearing securities, shares, properties, etc. and manages them. You are often guaranteed a minimum increase in value. There are also forms of management that count as traditional insurance in which the guaranteed increase in value is low or even zero.
* Unit-linked insurance. In a unit-linked insurance you generally decide yourself in which funds to invest your money. This means that you entirely accept the risk associated with the development of your pension funds.
When you select a fund insurance in with particular insurance company, your money is first invested in a so-called default fund. The insurance company will subsequently contact you and give you an opportunity to select a fund from the company's KAP-KL range.
Continue choosing an insurance company
Once you have selected an insurance type, the next step is to choose an insurance company to manage your pension capital. At Valcentralen and on the KAP-KL form, you can see the fees charged by the different insurance companies. You can also see how well the insurance companies have succeeded in managing the capital over the past five years.
Your return and the size of your fees will affect your final pension payments. Unfortunately, the return is difficult or impossible to predict from the companies' historical results. Historical return is no guarantee for future returns. In the case of unit-linked insurances, the money invested in the fund may increase or decrease i value, and you may not receive the entire paid amount in return. The size of the fee is possible to predict and it will impact the amount of money you can invest.
Make your choice
In order to make the choice as convenient as possible, Valcentralen provides different options for your KAP-KL choice:
* Make your choice directly at www.valcentralen.se. You log in by using your online ID (BankID or Mobile BankID). If you do not have an online ID, you can obtain one from your bank.
* Make your choice using the guide at www.valcentralen.se. You will be guided step by step throughout the process and the end result is a form that can be printed, signed and submitted to us.
Once you receive the insurance documentation, you contact your insurance company in order to add or remove things such as repayment cover, etc. And if you have chosen a unit-linked insurance, you can also change funds.
Information about transfers
If you were previously employed by a municipality or county council, you can transfer your pension capital within KAP-KL via Valcentralen, at www.valcentralen.se.
This new feature is useful even if you do not want to transfer your pension. It provides a summary of all your insurances with transferable capital within KAP-KL and also shows you the amount available in each. It is only on receiving that information that you decide which capital, if any, to transfer.
Transferring your pension capital
Use your online ID (BankID or Mobile BankID) to log in to www.valcentralen.se. You will find clear instructions about how to transfer your capital. It is done in several steps:
1. Start the transfer by requesting information on transferable pension capital. We will send a request to all companies that offer capital transfer within KAP-KL, to find out about the insurances you have and how much capital is available in each.
2. On receiving the summary, you take your time to review it. You have a fortnight to decide if you want to transfer any capital, and continue to step 3.
3. Select the insurances and companies between which you want to transfer capital, from a list that clearly defines the capital that can be transferred and how much each transfer will cost.
4. Capital transfer is initiated. You can still change your mind and cancel the transfer within 10 days.
5. After approximately two months, the capital transfer is complete. Throughout the process, you can track it on the Valcentralen website. Whenever there is new information, or when it is time to make a new decision, we will inform you via email or text message.