The Swedish Pensions Authority has begun returning nearly SEK 48m to more than 86,000 savers and pensioners affected by the Allra scandal.

Most payments will range between SEK 100 and SEK 1,000, with the most significant individual compensation amounting to SEK 2,600.

The amounts are being automatically credited to premium pension accounts as “korrektionsinsättning”, with letters sent to those receiving at least SEK 200.

This marks the second major disbursement to affected savers, following an earlier payout of over SEK 95m in April 2024, bringing the total returned to SEK 143m to date.

The outstanding judgment, including interest, still amounts to around SEK 170m, with the authority reiterating its commitment to securing the full sum on behalf of savers.

SPA director general, Anna Pettersson Westerberg, said she was happy for the savers who are now receiving financial compensation.

“The Pensions Authority continues to work intensively to find, recover and pay back the money that was lost in Allra and other crimes on the fund market,” she continued, adding that the Swedish Pensions Authority remained “persistent" in its efforts to recover the money.

“We will not give up until we have returned the money to pensioners and pension savers,” she stated.

The latest development follows a series of legal victories and settlements in recent years.

In 2021, the Svea Court of Appeal ordered Allra representatives to pay SEK 170m plus interest, a ruling that enabled the Authority to begin recovering funds.

In 2022, it reached a settlement with Allra Luxembourg worth between €4m and €5m, withdrawing that aspect of its lawsuit to speed up compensation.

The Swedish Pensions Authority also launched a lawsuit against Skandinaviska Enskilda Banken (SEB) in 2023, seeking SEK 470m plus interest, alleging that the custodian failed in its responsibilities while holding Allra’s funds.

---