Sweden is considered one of the most innovative countries in dealing with pension matters. In the 1990s, the pension system was overhauled and improved in an unconventional manner. The framework for the pay-as-you-go public pension system was changed from a defined benefit (DB) to a notional defined contribution (NDC) model, and the AP buffer funds were overhauled. The country was also among the first to introduce modern occupational pensions based on agreements between unions and employers.
Kåpan Pensioner, the pension fund for Swedish government employees, was founded in 1992, during that period of innovation. It is perhaps not among the best-known Swedish pension institutions, at least in Europe where giants such as Alecta , AMF and the AP funds often steal the limelight. However, with assets under management of SEK87.4bn (€8.9bn) at the end of 2017, it is one of the top 10 largest Swedish pension funds, according to IPE’s Top 1000 ranking.