The earnings-related pension sector is responsible for implementing statutory earnings-related pension provision. Authorized pension providers manage earnings-related pension insurance policies and invest the assets accumulated to pay for future pensions. TELA looks after the interests of the earnings-related pension sector.

Pension providers collect insurance premiums and information about employees and self-employed persons, grant pensions and pay them. Appeals against their decisions can be filed with the appellate bodies: the Pension Appeal Board and the Insurance Court.

Because of its funds, the earnings-related pension sector is also a considerable investor and an important player in the financial sector. This role is regulated. The pension assets are meant to be used for statutory earnings-related pensions. They must therefore be invested profitably and securely. In practice, this means that investments are diversified in various ways.

The Finnish Centre for Pensions is a statutory cooperation body for developing and implementing the earnings-related pension provision, a producer of joint services and the main keeper of registers in the earnings-related pension sector.

Earnings-related pension providers

The implementation of earnings-related pension provision is decentralized. Private-sector operators compete against each other. The competition focuses on operational efficiency and services as well as on investment returns. Insurance premiums and pension benefits are determined on administrative grounds and cannot be subject to competition.

The pension providers in the private sector are:

  • pension insurance companies
  • company pension funds
  • industry-wide pension funds
  • specialized pension providers
    • the Farmers’ Social Insurance Institution
    • the Seafarer’s Pension Fund

In the public sector, Keva manages the earnings-related pensions paid by municipalities, the State and the Evangelical Lutheran Church. In addition, Keva is responsible for the implementation of pension provision for the employees of the Social Insurance Institution (Kela). However, the State Treasury and the Central Church Fund are responsible for the financing of the State’s and the Church’s pensions and for the related investments. Pension decisions for the Bank of Finland employees are prepared at Varma Mutual Pension Insurance Company but the Pension Institution of the Bank of Finland is responsible for the financing and investments.

Cooperation among the various actors is seamless. An indication of this is that the person applying for a pension only needs to submit one application to the pension insurer that has had the main responsibility for insuring the applicant’s earnings towards the end of the career. This insurer collects the information needed for granting the pension from any other pension insurers that there may have been. In other words, the individual applicant does not need to contact various bodies to determine the pension accrued.