THE FINNISH CENTRE FOR PENSIONS
Press release 29.10.2009
Small adjustment to earnings-related pensions in January
Earnings-related pensions will increase by approximately 0.3 per cent (0.26%)
in January 2010. The adjustment applies to earnings-related pensions in both the
private and public sectors and concerns approximately 1.3 million people. There
will be no adjustment made to national pensions.
For example, an earnings-related pension on an average level of approximately
EUR 1,100 will increase by EUR 3.30 per month. The adjustment is the smallest it
has been for years. The only time it has been smaller was in 1994, when
earnings-related pensions were not raised at all, reports the Finnish Centre for
Pensions.
The earnings-related pension index is affected by the development of both
salaries and pricing. The weighting of salaries is 20 per cent and that of
prices 80 per cent. The increase in pensions is implemented with a slight delay,
since the pricing and salary levels of the third quarter of this year and the
last are compared when calculating the index.
The indices also concern those still involved in working life. Income earned
prior to retirement is raised with another index called the wage
coefficient. The purpose of the wage coefficient is to ensure a pension
for which the value correlates to the income level held while still
working. In the wage coefficient index, the weighting of salaries is
80 per cent and that of prices 20 per cent. From the beginning of next year, the
wage coefficient will increase by 3.27 per cent.
Additional information from the Finnish Centre for Pensions:
Special expert Arto Laesvuori, Tel +358 (0)10 751 2149 and
economist Kalle Elo, Tel +358 (0)10 751 2502 as well as
information officer Jouko Moilanen, Tel +358 (0)50 598
6008.