Exhibit 10.8
PENSION AGREEMENT
This Pension Agreement has been drawn up between Autoliv AB, company
registration number 556036-1981, hereinafter called the Company, and Xxxx
Xxxxxxxxxx, civic number 480626-1691 (year/month/date/number). This
Agreement replaces the pension agreement dated 11 November, 1998.
1. Age of retirement
The age of retirement determined for Xxxx Xxxxxxxxxx is 60. This implies
retirement as of, and including, the month when Xxxx Xxxxxxxxxx attains the
age of 60.
2. Occupational pension insurance
The Company undertakes to pay premiums for occupational pension insurance
policies, in the following amounts:
- 35% of salary amount up to 20 times the Swedish base amount, and
- 25% of salary amount in the interval between 20 and 30 times the
Swedish base amount.
However, the Company will not pay premium amounts in excess of such amount
for which the Company may claim tax deduction in accordance with ss.23 of
the Municipal Council Taxation Act, 20th paragraph (specifically, the
Alternative Rule).
In accordance with the purchase arrangements for these policies, the
Company shall be the owner of the policies and Xxxx Xxxxxxxxxx shall be the
insured.
The Company undertakes to make due payment of the premiums on a monthly
basis, up to and including the month immediately prior to the month when
Xxxx Xxxxxxxxxx attains the age of 60. However, only as long as Xxxx
Xxxxxxxxxx is in the employ of the Company, including the last month of
employment.
The pension agreement in respect of the collective Swedish ITP plan
(supplementary pension for salaried employees in industry and commerce) as
determined between the Swedish Employers' Federation (SAF) and the
Negotiation Cartel for Salaried Employees in the Private Business Sector
(PTK), as well as the Company's general supplementary plan that is
registered through SPP Life Insurance Company Ltd and which pertains to
pension benefits for salary amounts in excess of 30 times the Swedish base
amount, shall not apply for Xxxx Xxxxxxxxxx.
3. Supplementary pension
3.1 The pension-bearing salary
The supplementary pension shall be calculated on the basis of the current
fixed salary (12.2 times the monthly salary).
The Company shall have the right to limit any increase of the
pension-bearing salary in respect to any salary increases that may occur
when less than 60 months remain up to the age of retirement and when any
such increase is greater than 10%. The Company shall notify Xxxx Xxxxxxxxxx
in writing concerning any such limitation at the latest two months after
the new salary is known.
3.2 Supplementary old age pension cover before age 65
Supplementary old age pension before age 65 shall be paid, from the age of
retirement up to and including the month immediately prior to the month
when Xxxx Xxxxxxxxxx attains the age of 65, in an amount equivalent to 60%
of the salaried income.
Old age pension before age 65 is reduced when payments, as specified below,
are made:
- disability pension paid through disability insurance purchased by the
company,
- disability pension in accordance with the provisions of the National
Insurance Act, and
- temporary disability pension, or early retirement, in accordance with
the provisions of the National Insurance Act.
- Supplementary old age pension before age 65 provided by Granges AB,
including any adjustments in line with the consumer price
The supplementary old age pension before age 65 will be payable by the
Company in the form of direct pension benefits. The benefits have been
secured in such manner that the Company has purchased an insurance policy
through SPP Life Insurance Company, with Xxxx Xxxxxxxxxx as insured. The
Company is the owner of such insurance policy. The policy so purchased has
been pledged to the benefit of Xxxx Xxxxxxxxxx.
The Company undertakes to pay the monthly premiums up to, and including,
the month immediately prior to the month when Xxxx Xxxxxxxxxx attains the
age of 60, however, only as long as his employment with the Company is in
force, including the final month of employment.
3.3 Supplementary old age pension cover after age 65
Supplementary old age pension will be paid after age 65, for life, as of,
and including, the month when Xxxx Xxxxxxxxxx attains the age of 65, in the
following amounts:
- 32.5% of salary amount in the interval between 20 and 30 times the
Swedish base amount,
- 50% of salary amount in the interval between 30 and 100 times the
Swedish base amount, and
- 32.5% of salary amount in excess of 100 times the Swedish base amount.
Old age pension benefits after age 65 are reduced by the amount of
supplementary old age pension after age 65 simultaneously paid by Granges
AB, including any adjustments in line with the consumer price index.
The supplementary old age pension after age 65 will be payable by the
Company in the form of direct pension benefits. The benefits have been
secured in such manner that the Company has purchased an insurance policy
through SPP Life Insurance Company Ltd, with Xxxx Xxxxxxxxxx as insured.
The Company is the owner of such insurance policy. The policy so purchased
has been pledged to the benefit of Xxxx Xxxxxxxxxx.
The Company undertakes to pay the monthly premiums up to, and including,
the month immediately prior to the month when Xxxx Xxxxxxxxxx attains the
age of 60, however, only as long as his employment with the Company is in
force, including the final month of employment.
3.4 Supplementary disability pension
Supplementary disability pension will be paid in the event of disablement,
when the Company no longer pays sickness benefits. The level of disablement
shall be at least 50%. If disablement is not 100%, but is only partial,
then disability pension will be paid in proportion to the degree of
disablement.
Full disability pension will be paid in the following amounts:
- 32.5% of salary in the interval between 20 and 30 times the Swedish
base amount,
- 50% of salary in the interval between 30 and 100 times the Swedish
base amount, and
- 32.5% of salary in excess of 100 times the Swedish base amount.
Disability pension benefits will be paid monthly.
After commencement of payment of disability pension benefits, the amount
shall be adjusted in line with developments of the Swedish base amount.
The supplementary disability pension will be payable by the Company in the
form of direct pension benefits. The benefits have been secured in such
manner that the Company has purchased an insurance policy through Skandia
Life Insurance Company Ltd, with Xxxx Xxxxxxxxxx as insured, the insurance
amount of which corresponds to the pension benefits subject of the
Company's undertakings. The Company is the owner of such insurance policy.
The policy so purchased has been pledged to the benefit of Xxxx Xxxxxxxxxx.
The Company undertakes to pay the monthly premiums up to, and including,
the month immediately prior to the month when Xxxx Xxxxxxxxxx attains the
age of 60, however, only as long as his employment with the Company is in
force, including the final month of employment.
3.5 Supplementary family pension
The right to supplementary family pension shall come into force as of, and
including, the month after the death of Xxxx Xxxxxxxxxx.
The right to family pension shall be vested in Xxxx Xxxxxxxxxx'x spouse and
children under the age of 20.
A partner of the opposite sex who, without having been married to Xxxx
Xxxxxxxxxx, has lived with Xxxx Xxxxxxxxxx on a permanent basis prior to
his death, shall have same status as surviving spouse.
A precondition that a partner shall have the right to receive family
pension, is that Xxxx Xxxxxxxxxx has duly informed the Company in writing
of the name and civic number of such person.
However, the right to family pension in respect of surviving
spouse/partner, shall not apply if the marriage/partnership has commenced:
- after Xxxx Xxxxxxxxxx has attained the age of retirement, or
- when Xxxx Xxxxxxxxxx'x disablement is permanently reduced by at least
50%, or
- when Xxxx Xxxxxxxxxx suffered from ill health which, within a period
of 6 months after commencement of marriage/relationship, was the cause
of Xxxx Xxxxxxxxxx'x death.
Basic amounts for supplementary family pension are as follows:
- 16.25% of salary in the interval between 20 and 30 times the Swedish
base amount,
- 25% of salary in the interval between 30 and 100 times the Swedish
base amount, and
- 16.25% of salary in excess of 100 times the Swedish base amount.
Family pension benefits are payable in the percentage of the basic amount,
as detailed below:
Beneficiary Family pension in %
of the basic amount
Surviving spouse/partner without children 100
Surviving spouse/partner and one child 130
Surviving spouse/partner and two children 150
Surviving spouse/partner and more than two children 150+
For each child over and above two children 10
One child 75
Two children 110
Three children 135
Four children 150+
For each child over and above four children 10
Family pension benefits will be reduced by the amount of supplementary
family pension benefits that are simultaneously paid by Granges AB,
including any upwards adjustments in line with the consumer price index.
The rights of a surviving spouse/partner to family pension benefits will
cease in the event such person enters into a new marriage. In such a case,
family pension benefits will cease as of, and including, the month after
the month when new marriage occurred.
The supplementary family pension will be payable by the Company in the form
of direct pension benefits. The benefits have been secured in such manner
that the Company has purchased an insurance policy through SPP Life
Insurance Company Ltd, with Xxxx Xxxxxxxxxx as insured. The Company is the
owner of such insurance policy. The policy so purchased has been pledged to
the benefit of Xxxx Xxxxxxxxxx.
The Company undertakes to pay the monthly premiums up to, and including,
the month immediately prior to the month when Xxxx Xxxxxxxxxx attains the
age of 60, however, only as long as his employment with the Company is in
force, including the final month of employment.
3.6 Termination of employment prior to attainment of age of retirement
When Xxxx Xxxxxxxxxx terminates his services at the Company, he shall have
the right to conversion into paid-up policy in respect of old age pension
and family pension. Pension rights are earned on a linear basis commencing
as of, and including, the date when Xxxx Xxxxxxxxxx commenced his services
at the Company.
3.7 Early or deferred withdrawal
Xxxx Xxxxxxxxxx does not have the right to early withdrawal of old age
pension benefits without prior consent from the Company.
Xxxx Xxxxxxxxxx has the right to defer withdrawal of old age pension
benefits, however, at the longest up to, and including, the month
immediately prior to the month when he attains the age of 70.
Adjustment/recalculation of old age pension benefits shall be performed in
accordance with the technical bases applied by SPP Life Insurance Company
Ltd.
3.8 Indexation of pension
Payments in respect of supplementary old age and family pension benefits
shall be adjusted upwards as per 1 January each year in line with change in
the consumer price index, calculated from September two years before the
payment year and through to September of the year prior to the payment
year.
In the event that Xxxx Xxxxxxxxxx qualifies for conversion to paid-up
policy in accordance with the provisions of Item 3.6 above, the paid-up
value shall be adjusted upwards in the same manner as detailed in the
foregoing paragraph.
3.9 Termination of pension
Over and above specifications detailed in this Agreement, the supplementary
pension shall cease to be in force at the end of the month during which the
person covered by this Pension Agreement dies.
3.10 Other conditions
Any terms and conditions in respect of supplementary pension that are not
specifically regulated by the provisions of this Agreement, shall otherwise
be regulated in accordance with the provisions of the national ITP plan.
The insurance terms applied by Skandia Life Insurance Company Ltd and SPP
Life Insurance Company Ltd, respectively, shall be applied in their
pertinent parts.
4. Pension benefits over and above the supplementary pension benefits
Because Xxxx Xxxxxxxxxx'x age of retirement has been set at 60, the Company
will not pay any premiums for an occupational pension when Xxxx Xxxxxxxxxx
has attained this age. For purposes of compensating Xxxx Xxxxxxxxxx in this
matter, the Company will undertake to make arrangements for other pension
after the age of 65.
4.1 Undertaking in respect of pension
The Company undertakes to pay old age pension benefits to Xxxx Xxxxxxxxxx
in accordance with the provisions of Item 4.3 above, and family pension
benefits in accordance with the provisions of Item 4.4 above.
4.2 Purchase of insurance policies
Pension benefits over and above supplementary pension benefits will be
payable by the Company in the form of direct pension benefits. The benefits
have been secured in such manner that the Company has purchased an
insurance policy through Skandia Life Insurance Company Ltd and SkandiaLink
Life Insurance Company Ltd (hereinafter together called Skandia) with Xxxx
Xxxxxxxxxx as insured, in accordance with the following terms:
o Owner of the insurance: the Company
o Co-insureds: Xxxx Xxxxxxxxxx'x spouse/partner and children
o Terms governing payment:
- Life annuity is paid to the Company as of, and including, the month
when Xxxx Xxxxxxxxxx attains the age of 65, and for as long as Xxxx
Xxxxxxxxxx lives.
- If Xxxx Xxxxxxxxxx dies before the date just mentioned, the pension
capital will be paid monthly to the Company for a period of 20
years, however, only as long as any one of the co-insureds lives.
- If Xxxx Xxxxxxxxxx dies after the date just mentioned, but before a
full period of 20 years of payments has passed, the outstanding
pension capital will be paid monthly to Company during the
remainder of the payment period, however, only as long as any one
of the co-insureds lives.
o Terms of payment of premium amounts:
The premium amounts shall be adjusted in line with developments of
the Swedish base amount, and currently amount to SEK 8,162 per
month.
The Company undertakes to make monthly payments of the premium amount
up to, and including, the month immediately prior to the month when
Xxxx Xxxxxxxxxx attains the age of 60, however, only so long as Xxxx
Xxxxxxxxxx is in the employ of the Company, including the last month
of employment.
4.3 Old age pension
Old age pension benefits will be paid as of, and including, the month when
Xxxx Xxxxxxxxxx attains the age of 65. The pension will be paid on a
monthly basis. The monthly pension amount shall, on each at each payment,
be equally large as the amount that the Company receives through the
insurance policy.
Agreement may be reached between the Company and Xxxx Xxxxxxxxxx as regards
another point in time for commencement of payments, as well as regards
another period of period. In such a case, the pension benefits will be
based on the insurance amount subsequent to the change.
4.4 Family pension
If Xxxx Xxxxxxxxxx dies before old age pension benefits are paid in
accordance with the provisions of Item 4.3 above, then family pension
benefits will be paid for a period of 20 years (or during other period as
agreed by the parties in accordance with the provisions of Item 4.3 above).
If Xxxx Xxxxxxxxxx dies after commencement of payment of old age pension
benefits, but before expiry of the full payment period, then family pension
benefits will be paid during the outstanding payment period.
Family pension benefits will be paid to Xxxx Xxxxxxxxxx'x spouse/partner.
If there is no spouse/partner, or spouse/partner abstains partially or
wholly from her rights, then payments will be made to Xxxx Xxxxxxxxxx'x
children who have right of inheritance (but not the offspring of children).
Family pension benefits are paid on a monthly basis. The monthly pension
amount shall, on each at each payment, be equally large as the amount that
the Company receives through the insurance policy.
4.5 Pledge in respect of the annuity insurance
The Company pledges the insurance to Xxxx Xxxxxxxxxx as security in
fulfilment of the Company's undertakings provided under this Item.
At the death of Xxxx Xxxxxxxxxx, the pledge will be transferred immediately
to such person or persons who is/are entitled to receive family pension
benefits. If there is/are no person or persons who holds/hold entitlement
to the family pension benefits, then the rights will cease to be in force.
5. Notification in respect of pledge
The Company shall have a duty to notify Skandia Life Insurance Company Ltd,
SkandiaLink Life Insurance Company Ltd and SPP Life Insurance Company Ltd
concerning the pledge in respect of the annuity insurance policies and
endowment insurance policies.
6. Employer's contribution tax
The Company shall be liable to pay employer's contribution tax, or similar
taxes or fees which may be levied on the pension payments.
7. Changes in the legislation or the national ITP plan
In the event that changes in legislation or the national ITP plan entail
considerably changed preconditions for pension benefits under this
Agreement, then the Company shall have the right to adjust the terms of the
Agreement in line with changed preconditions.
8. Disputes
Disputes concerning this Agreement that cannot be resolved through
negotiations between the parties, shall be resolved - in Stockholm - in
accordance with the Arbitration Act in force in Sweden.
The Company shall bear all costs for such arbitration proceedings,
irrespective of the outcome, provided that the Board of Arbitration does
not rule that Xxxx Xxxxxxxxxx has called proceedings without due cause
thereto by the Company, or otherwise deliberately and intentionally, or
through negligence has given cause for unnecessary legal proceedings
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This Agreement has been drawn up in two identical copies, of which each
party has received his copy.
Signed: Stockholm, 26 November, 1999
Autoliv AB Xxxx Xxxxxxxxxx
Acknowledgement of Translation
The undersigned officer of Autoliv, Inc. hereby certifies that the
foregoing translation of the Pension Agreement is a fair and accurate
translation from Swedish of the original agreement within the meaning of
Rule 306 under Regulation S-T under the Securities Act of 1933.
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
Vice President Legal, General Counsel
and Secretary
