8
This means that any screening for DB often takes place late in a sickness absence spell
and that most/all individuals on DB have a prehistory of long sickness absence.
9
In this
way, the Sickness insurance and disability insurance are intimately related in Sweden. A
recent overview (OECD, 2009) shows that Sweden had the second highest number of lost
working days due to sickness and disability among OECD countries in 2007; more than 25
days per employee per year. In the US, the corresponding figure is 9 days.
2.5
Supplementary Benefits
Besides compensation from the public transfer system, most employed are also entitled to
additional compensation from agreements between the social partners.
10
As sick absent,
these insurances top up the compensation below the cap up to a maximum of 90 percent
of forgone earnings. Above the cap, total compensation amounts to 80-90 percent of
foregone earnings the first year of the sick spell. About 90 percent of those in the working
age population are covered by these supplementary benefits (Sjögren Lindquist and
Wadensjö, 2007).
If the individual receives DB, the collectively agreed insurances top up the
compensation from the public insurance system to a maximum of 85 percent up to a cap
of SEK 307,500 (
€30,750). Total compensation is lower above the cap. Similar to above,
almost everyone is entitled to these benefits. All in all, the total compensation when being
sick absent more than 361 days is very similar to the benefits as disabled for all spheres
of agreement.
Finally, as unemployed, the agreement-based insurance schemes could top up
compensation to a maximum of 80 percent of previous earnings. To qualify for these
insurances, the unemployed generally needs to be of a certain age and/or has been
working at the workplace for a certain number of years. As a consequence, the share of
unemployed entitled to these benefits is lower than the corresponding shares among sick
reported and DB receivers.
In summary, the generosity of the agreed-based insurance schemes correlates with
those of the public transfer system. They are most generous in case of sickness absence,
and less generous when unemployed.
9
For those who were granted DB in 2007 and received sickness benefits up to the start date of
receiving DB, the median sickness absent period was 789 days.
10
These benefits mostly consist of four spheres of agreement: i) central government employees, ii)
municipal and county council employees, iii) white-collar workers in the private sector, and iiii)
blue-collar workers in the private sector. For more details on design of agreement-based insurance
schemes, see Sjögren Lindquist and Wadensjö (2006).
