Sweden’s pension system consists of an earnings based “income pension” funded on a pay-as-you-go basis by employee and employer contributions of 16 per cent of earnings. An additional 2.5 per cent of earnings is paid into a funded government sponsored defined contribution “premium pension”. Reserves backing the income pension are divided evenly between four state run buffer funds, AP1, AP2, AP3, and AP4. In addition, employees covered under a collective agreement (most Swedish employees) also receive a separate occupational pension. There are four different pension collective agreements: SAF-LO, for privately employed white collar workers; ITP, for privately employed blue collar workers; KAP-KL/AKAP-KL, for employees within local government; and PA 16, for Swedish civil servants.