Allmän tilläggspension

Tilläggspension ("Supplementary pension") is a government-run pension system in Sweden, paid to wage labourers on retirement. It was originally enacted on 1 January 1960 by an act of parliament, and funded by payroll taxes paid by the employers. The original system was called Allmän tilläggspension ("General supplementary pension", ATP). The systems are called "supplementary" because they are paid in addition to the general age pension, and the size of the payment is dependent on wages earned and the number of years as a wage earner.

Before the advent of ATP, Swedish labourers were only insured with a basic retirement fund, which was barely adequate to sustain them. Professional employees, in contrast, had a higher wage and their union succeeded in negotiating a supplementary retirement fund with employers which was paid by wages. Other groups did not have the same opportunity to negotiate supplementary retirement funds.

In 1956 an investigation was commissioned to investigate this problem. It suggested a system for a general employee retirement fund for the workers. The parties represented in the Riksdag thus disagreed with each other, with centre and right-wing parties wanting a voluntary system, while the Swedish Social Democratic Party together with the Communist Party wanted a mandatory system.

Although at a public referendum 1957 the line which advocated a mandatory system received most votes, the socials could not pass the issue because of a tie vote. But they put forward the proposition anyway. The tie vote was resolved by a MP (Ture Königson) for the Folkpartiet who abstained stating that he cannot vote against the pensioners, thereby passing the proposition.

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Wikipedia