There is no plastic collar on the top of the seat.
SOURCE: Front Seat Headrest
press and keep holding the release button between top of seat and the headrest and pull the headrest all the way up
SOURCE: How can I remove front row seat headrest?
Most volvo headrest can be removed by releasing the catches which are on the back of the headrest on some models and on the front on others I believe on 960 they are on the back. To release the seat on a 960 look where the shafts should be then follow it down on the back where the seat back top stops then goes in press around that area you should be able to find the catch there pull up on the headrest while releasing the catch you have to do this on both sides. The headrest should come off this also works on 740 and 760 series the volvo 780 is a different story the only way to get the headrest off on that is to disassemble the seat
SOURCE: How do you remove the headrests on the front and third row seats?
There is a small hole at the base of the headrest post. Use a nail and push in the hole to release them.
SOURCE: Headrest removal
When you pull it up all the way, you should see a very small hole at the base of the rod. Poke a small nail in there and that will release the catch.
SOURCE: 1995 Volvo Station Wagon headrest removal
You have to push in on the back of the seat as in the picture below. It really takes two people, one to push in and one to pull up on the head rest. http://www.matthewsvolvosite.com/forums/download/file.php?id=1748&mode=view
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