AP6, Gothenburg, is to be folded into AP2, Gothenburg, as part of a series of pension reforms undertaken by the Swedish government, according to an official release.
The government had tasked an investigator in October with reviewing the operations of AP1, AP3 and AP4, Stockholm, and AP2, Gothenburg and AP6, looking to modernize and streamline their management.
The current three buffer funds in Stockholm will become two, with the assets of AP1 to be split equally between AP3 and AP4.
According to Pensions & Investments' data, AP1 has $39.7 billion in assets; AP2 has $38.7 billion; AP3, $45.2 billion; and AP4, $43.3 billion. AP6 had 70.7 billion kronor ($7 billion) in assets as of Dec. 31, 2023, according to its latest annual report.
The changes will be enacted into law following legislation that the Swedish government will “present shortly,” according to the government release. Sweden's Pension Group committee, where all parliamentary parties are represented, has expressed its support for the proposal.
"We are protecting taxpayers' money, which is why we are tightening the requirements for boards and merging some funds," said Niklas Wykman, minister of financial markets, in the government release. "Today, there are no fewer than five buffer funds, even though there are obvious economies of scale. This lowers costs and provides better control over the funds' operations. It benefits everyone who works and pays into this system."
The government will appoint two special investigators to help the pension funds with implementing the reorganization, one who will primarily assist the funds in Gothenburg and one in Stockholm. The government expects the changes to be implemented by Jan. 1, 2026.
The Swedish Ministry of Finance couldn't immediately be reached regarding whether there will be any job losses at AP1 and AP6 as a result of the consolidation.
