Occupational pension administration – a cost or an investment?

Occupational pensions are an employer’s second-largest cost. And that cost can rise significantly if mistakes occur that need to be corrected retrospectively. Introducing a solution that reduces the risk of mistakes should be seen as an investment rather than a cost.

Errors in occupational pension contributions often take time to detect. And when they are discovered, correcting them retrospectively is often costly and time-consuming. Bringing in external expertise in a complex area that is difficult to navigate may seem expensive, and like something that could be handled just as well in-house. At a lower cost. But should external expertise really be seen as a cost rather than an investment?

FörsäkringsGirot is Sweden’s market-leading partner for employers who need support with administering occupational pensions, insurance and benefits. With over 30 years of experience, we work to ensure that all employees in Sweden receive the correct occupational pension and the right insurance cover.

It may still seem easiest to manage occupational pension administration yourself, but our reviews show that around one in five employees has incorrect insurance cover. Proactive, quality-assured management reduces the risk of costly mistakes in your employees’ pension contributions.

What affects the cost?

The biggest challenge in occupational pension administration is preventing mistakes. Tailored system support enables you to benefit from quality-assured ongoing administration of occupational pensions, insurance and other benefits.

As an independent provider in the pensions and insurance sector, we work on your behalf as an employer, focusing on ensuring that your employees receive the correct occupational pension.

Several factors affect the price, so it is not possible to give a general price estimate. However, some factors have a particularly significant impact. As a rule, the price can be divided into three categories: implementation, ongoing costs and other services.

Implementation

When you become a client, an implementation process begins. This process requires close collaboration between you as the client and us at FörsäkringsGirot.

The implementation process lays the foundations for our future collaboration. It involves reviewing your current situation, examining existing systems and processes, establishing pensionable salary, and setting up policies and rules for occupational pensions and accounting.

During the implementation phase, factors such as company structure, the number of pension plan types, how much is handled internally versus externally (within Sweden or abroad), and system integrations can affect the time required and therefore the cost.

Ongoing

The ongoing cost includes access to the automated system and ongoing support and advice from our experts. You can also assign different access permissions to your employees, so that everyone has access to the same system and can follow the entire process.

The ongoing cost is mainly affected by the number of employees you have who need to be managed in the system. This is because more employees mean more extensive checks and place greater demands on our systems.

The more employees you have, the greater the risks you face. This is partly because errors can affect more individuals, and partly because checks take longer and manual processing creates a risk of errors occurring at more points in the process.

Other services

Employees’ pensions and insurance are an important part of your benefits package and an investment you make as an employer. It is important to us that you feel confident in your knowledge. That is why we are here to help you take the next step. If you need additional support and advice on your occupational pension administration, we are always available.

We therefore offer additional services in in-depth support with salary sacrifice and training or analysis to build in-house knowledge.

Is it really a cost?

But if we take a broader view and look at the cost from a new perspective, considering resources such as expertise, time and risk reduction rather than just financial resources, the equation looks different.

How Husqvarna has reduced its administrative workload by just over two weeks a year through one of FörsäkringsGirot’s additional services.

Bringing in external support and an automated process improves efficiency for you and your colleagues, saving working time. Thanks to our extensive experience and specialist expertise in this area, you can also be confident that your employees consistently receive the correct occupational pension and insurance amounts. This reduces the need for costly skills development and any reliance on particular individuals.

As well as streamlining administration to free up time for other tasks, the risk of mistakes is reduced. Mistakes that can, in turn, lead to expensive retrospective corrections. At the same time, reports and analysis tools enable you to plan and monitor pension-related costs more effectively.

Taking an even broader view, you can also be confident that everything is handled correctly, without having to understand complex regulations in a specialist area that is difficult to navigate. With our expertise in occupational pension administration, we stay informed about upcoming changes and prepare to continually develop our service in line with changing regulations.

Invest in peace of mind

Book a free review with one of our experts and we will tell you more about how you can reduce the risks in your occupational pension administration.