Indexation of earnings-related pensions
The earnings-related pension strives to secure reasonable maintaining of the
insured person’s level of consumption achieved during the active years both upon
retirement and during retirement. The indexation of earnings-related pensions
strives for its part to promote the achievement of this aim.
For this purpose the insured person’s wages and earned incomes during the
working career are adjusted in line with the index for the active years (wage
coefficient) to the level of the starting year of the pension when the pension
is determined, and after that the pension in payment is adjusted annually in
line with the index for the time in retirement (earnings-related pension
index).
Index adjustment in line with the wage coefficient ensures that the insured
person receives a pension which is proportional to the income level during the
work history when the pension starts. Index adjustment of the pension in payment
in line with the earnings-related pension index provides protection against
decreases in the value of money, but it also strengthens the purchasing power of
the pension.
Indices in 2009
Earnings-related pension index 2286 (+4.95%)
Fifty-fifty index 2494
(+5.54%)
Wage coefficient 1.192 (+6.04%)
Indices in 2008
Earnings-related pension index 2178 (+2.39%)
Fifty-fifty index 2363
(+2.25%)
Wage coefficient 1.124 (+2.18%)
Työeläkkeiden
indeksisuoja TEL:stä TyEL:iin, Finnish Centre for Pensions, Reports 2009:1
>>
Finnihs Centre for Pensions, Reports 2009:1, Työeläkkeiden indeksisuoja TEL:stä TyEL:iin (PDF) (in Finnish)
>>