Raised bonus rate from July 1st 2024

Current bonus rate from 1 July 2024 amounts to 16% for PLUSpension, 14% for Contract pension SAF-LO, 11% for Alternative ITP T10 and 7% for Volvo Company pension.

VFF Pension has four separate pension insurance products, of which Volvo Company pension is the only one with ongoing premium payments. The other pension insurances are PLUSpension, SAF-LO and ITP-T10.

All pension insurance products have their own, varying excess of surplus within the respective pension insurance product, which is measured by the degree of consolidation (KKG). The higher this degree is, the higher the surplus that can be distributed to the various insurance policies. Currently, there is a larger surplus for PLUSpension, SAF-LO and ITP-T10, which is due to the fact that they have existed for different lengths of time and during different periods.

The degree of consolidation is measured separately within each pension insurance product and measures the excess of our total capital compared to total insurance capital (premiums + guaranteed interest + allocated refund) within the same pension insurance product.

The degree of consolidation currently varies within the various pension insurance products as shown below:

PLUSpension:                       123%
SAF-LO:                                 121%
ITP-T10:                                 118%
Volvo Company pension: 113%

As the consolidation rate, i.e. the surplus, is higher in PLUSpension, SAF-LO and ITP-T10, we will from July 1st 2024, increase the bonus rate in these pension insurance products in order to equalize the consolidation rate in the long run, within about 12 months. What we do is to distribute the surplus in the respective pension insurance product to the insured.

When the period is over, the consolidation, i.e. the surplus in the respective pension insurance product, should be at a suitable level between approx. 105 – 115%. The refund rate will then be adjusted to an equivalent level for all our pension insurance products.