Sweden to pay pension to beneficiaries in Finland until year end

Sweden may stop paying the Swedish guarantee pension (garantipension) outside Sweden at the start of next year, said the Finnish national social insurance institution- Kela in a press release on Tuesday.

Kela will continue to monitor the situation and will work with Pensionsmyndigheten, the Swedish pensions authority.

Any impact on Kela pensions and benefits is being examined. Clients will be informed as soon as there is definitive information about the scope of the changes.

Customers do not have to take any steps for the moment.

The changes being considered will not affect the payment of occupational pensions.

The Swedish Government has proposed continuing to pay the Swedish guarantee pension (garantipension) to beneficiaries in EU/EEA countries or in Switzerland until the end of this year.

The EU Court of Justice in 2017 issued a preliminary ruling which Sweden interpreted as lifting the requirement to pay the guarantee pension outside Sweden.

However, payments of the guarantee pension to beneficiaries outside Sweden have continued under temporary legislation.

Initially, the guarantee pension was to be paid until the end of September 2022. Under the proposed changes, payments would continue to the end of this year, assuming that the Swedish Parliament approves the Government’s proposal.

The potential changes impacting the guarantee pension will not affect the payment of occupational pensions. The occupational pensions available from Pensionsmyndigheten (inkomstpension, premiepension, inkomstpensionstillägg, tilläggspension) as well as pensions from other pension authorities will continue to be paid to beneficiaries outside Sweden.