The Swedish Ministry of Finance announced Wednesday it plans to eliminate two of its state pension funds, merging their assets with the remaining three, a news release said.
Of the five current funds — AP1, AP2, AP3, AP4 and AP6 — the sixth AP fund would be merged with the second to create a newly formed AP2. No decision has been made yet on which other funds would be eliminated or merged.
The plan was originally approved in March 2014 by the coalition government and the Social Democrats, the biggest opposition party, in an effort to lower asset management costs and leave more money for retirees.
Today, AP2 and AP6 are located in Gothenburg, while the others are in Stockholm. AP2 would continue to be based in Gothenburg.
A new committee authority called the National Pension Fund Board will also be established.
AP1 has 284 billion kronor ($34.6 billion) in assets; AP2, 293.9 billion kronor; AP3, 272.6 billion kronor; AP4, 295 billion kronor; and AP6, 23.6 kronor.
Officials at the ministry could not be reached by press time.