The Swedish Administrative Court of Appeal has rejected an appeal brought by an individual who, in 2010, requested back pay relating to 2008 and 2009 and argued that it should be viewed as pensionable income for those years and not the year it was paid out.

This individual was forced to retire in 2008 and the Swedish Labour Court held that the retirement was unlawful. His 2008 and 2009 salary was retrospectively paid in 2010. However, as the lump sum payment well exceeded the cap for pensionable income, the actual pension was reduced by SEK 1,600 per month for the rest of his life. The Administrative Court of Appeal held that there were no legal grounds for this retrospective salary to be apportioned to the years during which the salary should have been earned and concluded that the salary could only be regarded as pensionable income for the year in which it was paid out.