EUROPEAN PAPERS ON THE NEW WELFARE

Part-Time Pensions and Part-Time Work in Sweden

Table 6 shows the development over time of the number of people with compensation from the special part-time pension system. The variations are large, especially in the number of new pensions. The large increase in 1980 is explained by the decision to lower the replacement rate for newly granted pensions from 1981, a decision which was made already in 1980. Many of those who would have applied for a pension later hurried to apply already in 1980 to be able to get a pension with the old, higher replacement rate.
The increase in 1987 is explained by the increase in the replacement rate back to the original 65% level. The large increase in new pensions in 1992 is explained by the Government’s proposition of an abolishment of the part-time pension system (no new part-time pensions would be granted for those who had applied after a certain date. Many hurried to apply for a part-time pension. The Parliament, however, did not accept the proposal from the Government. After the drastic changes in the rules in 1994 the number of new part-time pensions declined dramatically and the number of part-time pensioners gradually fell to a very low level. The part-time pension system more or less disappeared before it was formally abolished.
A part-time pension combined with part-time work does not entail a fixed number of working hours. The minimum was set to 17 hours and the maximum to 35. Table 7 shows the number of working hours for those who had a part-time pension on December 31, 1993. The information is from the period before the maximum reduction in working hours was changed to ten hours for those with a new part-time pension.

Table 7: The number of people according to (weekly) working hours after getting a part-time pension among those who had a part-time pension December 31, 1993
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Source: Calculations made at the National Insurance Board14.

Table 8: People aged 60 (61)-64 years in different partial pension systems in 1980, 1986, 1993 and 2003
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Sources: Riksförsäkringsverket 1981 and 1985/86; Riksförsäkringsverket, Statistisk information 1994:2 and 1994:14; Information from the National Insurance Board. * Estimated values.

14 The calculations were made in connection with the study which was published as Wadensjö (1996).


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