Those of you born in 1978 or earlier and are privately employed, salaried workers at a company with a collective agreement, are covered by ITP 2.
ITP 2 is an occupational pension package with several elements:
- Retirement pension ITP 2 – a defined-benefit pension, calculated based on your final salary
- ITPK – a defined-contribution pension of two per cent of the salary which you can personally invest with an eligible ITPK company
- Family pension – compensation to survivors upon your death
- Disability pension – compensation in the event you are unable to work for an extended period
- In addition, there is also Occupational Group Life Insurance for survivors upon your death.
How much does an ITP2 retirement pension provide?
- 10 per cent of the final salary between 0 - 7.5 statutory income base amounts
- 65 per cent of the salary between 7.5 and 20 statutory income base amounts
- 32.5 per cent of the salary between 20 - 30 statutory income base amounts
30 years of accrual is required for full ITP 2.
An ITP 2 retirement pension can be financed using a book reserve method.