Part-Time Pensions and Part-Time Work in Sweden

6. The Swedish part-time pension system

As mentioned earlier there are only a few studies of the Swedish part-time system other than those that are based on aggregated data13. One exception is Sundén (1994) whose study is based on the Level of Living Investigations (LNU) from 1974 and 1981. In the next section I will use results from Sundén’s study together with calculations based on data from the National Social Insurance Board to estimate the effects of the part-time pension system. In this section information on the part-time pension system and part-time work in Sweden will be presented.
The part-time pension system was introduced in 1976. The part-time pension system was complemented with additional occupational part-time pensions for the main part of the employees (the main exception was blue-collar workers in the private sector). The part-time pension system became very popular in a short time. Many applied for and received a part-time pension. The most important steps in the development of the part-time pension system are presented in Table 5. The replacement rate changed on three occasions. It was first lowered and later restored to its original level. In 1994 it was lowered again at the same time as other changes were made, changes which were the first steps towards the abolishment of the system. This was a part of the agreement on the new system for old age pensions. In accordance with that agreement, no new part-time pensions have been granted since year 2000.

Table 5: The development of the Swedish part-time pension scheme

Table 6: New and all part-time pensions 1990-2000
Sources: Riksförsäkringsverket, Delpensioneringen t o m 1996, Statistikinformation Is-I 1997:2, and information from The National Insurance Board.
* Information on the number of men and women with part-time pensions is unavailable for 1976-1989 and 1997-1998; ** July.

13 See Ginsburgh (1985), Wadensjö (1993, 1996) and Wise (1990).

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