Arrangement closed, does not concern new employees

Registering a supplementary pension arrangement with the Finnish Centre for Pensions means that the same rules apply to the supplementary benefit as to pensions under the Employees’ Pensions Act (TEL). For instance, accrued pension rights are maintained even if the person changes work, the protection against inflation is the same and the pension benefits include old-age, disability and unemployment pensions.

The registered supplementary pensions were closed by law 1 January 2001. New supplementary pension insurance can no longer be registered, nor can new employees become covered by the insurance policy. Those who were previously covered by the insurance policy retain their right to a supplementary pension.

The supplementary pension includes improvements which vary according to the employer. The retirement age can be lowered so that it is the same both for men and women. The pension amount may be increased, but it must not exceed 66 per cent of the pensionable wage. The time in employment required for a full pension may have been shortened to 30, maybe even 25 years. The survivors’ pension and early old-age pension may have been supplemented. A burial grant may be included in the benefits.

Insurance of a lower retirement age may be continued in supplementary pension provision also after 1 January 2005 and under certain conditions it also entitles to receipt of the pensions from private-sector basic pension provision at the lower retirement age of supplementary provision. Insurance of an increased pension amount may from the beginning of 2005 be continued with a fixed euro amount which accrues in full if supplementary insurance is continued until the retirement age. Earnings after 31 December 2004 do not in that case affect the amount of supplementary provision.