Effect given to the recommendations of the committee and the Governing Body - Report No 334, June 2004

Case No 2171 (Sweden) - Complaint date: 20-NOV-01 - Closed

Effect given to the recommendations of the Committee and the Governing Body

1. 63. At its November 2003 session the Committee examined this case which concerns a statutory amendment enabling workers to remain employed until the age of 67 and prohibiting negotiated clauses on compulsory early retirement. The Committee once again requested the Government to take remedial measures so that agreements already negotiated on pension matters continue to produce all their effects until their expiry dates. It also requested the Government to keep it informed of the results of consultations on pension issues with the bargaining partners with a view to finding a solution that would be in conformity with the Conventions on freedom of association ratified by Sweden [see 332nd Report, para. 165].
2. 64. In a communication of 9 March 2004, the Government clarifies that the new mandatory rule (2001:298) in the Employment Protection Act (1982:80) entitles, but does not oblige, workers to remain employed until the end of the month they are 67 years old. This provision was introduced with the new pension system under which the computation of income-related old-age pension is based on the lifetime income principle. There is no upper age limit to the earning of pension rights under this scheme. According to the compulsory public scheme, income-related old-age pension can still be paid from the month persons reach their 65th birthday, but they may request an early pension (from age 61) or a deferred one. The right to remain employed until the age of 67 enables workers to earn pension rights for a longer time. Under the Employment Protection Act, as amended, it is no longer possible to conclude agreements obliging workers to retire earlier than the age of 67; however, it is still possible to make an agreement specifying an earlier age at which workers are entitled to retire with a pension. Provisions on pension rights contained in collective agreements already negotiated thus continue to produce their effects until their expiry dates. The Government therefore assumes that the case concerns only the right to remain employed (agreements on compulsory retirement age) and not pension rights.
3. 65. The Government adds that a meeting took place with the bargaining partners on 12 June 2003. In the public sector (State and local governments) new agreements on retirement age, adapted to the Employment Protection Act as amended, have been concluded; in other cases, agreements were under way but not formally concluded yet. Like before, no pension points under the collective agreement scheme are earned after the age of 65. As for the private sector, new agreements on retirement age have not been concluded.
4. 66. The Committee notes this information. It nevertheless recalls its previous request that the Government should take remedial measures so that agreements already negotiated on pension matters continue to produce all their effects until their expiry dates. The Committee asks the Government to provide information on the results obtained at the meeting with the bargaining partners on 12 June 2003 and on any further consultations held. The Committee asks the Government to implement its recommendations, in conformity with freedom of association principles, and to keep it informed of developments.