Occupational Pension Plan - this is paid for by the employer and can be a DB or DC arrangement. If a company operates a DB plan (usually through the collectively agreed ITP plan), the company normally fulfills its pension obligation by making regular pension premium payments to an insurance company called Collectum. However, some (in particular larger) Swedish companies use the book reserve method for their DB obligation. In other words, instead of making pension payments to Collectum, the liability remains on the company's balance sheet as a debt to the staff. That provision would then be secured with a credit insurance. The provider of the credit insurance would typically require some sort of surety and also a parent company guarantee

National Public Pension (mandatory and not a pension plan)

Any DB plan surety and guarantee in place in favor of an insurance company will remain in place despite the change in control until the new owner has provided satisfactory surety and guarantees. The processing times to be accepted by the issuer of the credit insurance varies depending on the size of DB obligation and this question should therefore be reviewed at an early stage of the transaction process. If the new owner is not approved, this may trigger considerable costs for the target company as it may need to wind up the DB obligation and replace it with traditional pension insurance instead. Also, in case of an asset deal, the employee's individual consent, or a blanket approval from the County Board, would need to be obtained in order to transfer the DB obligation to the new employer. This should also be looked into at an early stage.