Industry-wide Pension Funds
Industry-wide pension funds grant pensions to the members of the fund and to others who are insured with the fund. Industry-wide pension funds differ from pension insurance companies in that the former are either employer- or field-specific.
In other words, members of an industry-wide pension fund are employees of one or several employers who have an economic or a functional connection. The employees of employers belonging to the same group may also be members of a joint industry-wide pension fund.
In addition to statutory earnings-related pension provision, industry-wide pension funds may also offer their members supplementary pension provision through bonus funds or departments. In such cases, the employees can participate in the financing of the supplementary pension provision.
At the end of 2013, industry-wide pension funds had approximately 26,300 members insured under the Employees Pensions Act. The number of pensioners handled by industry-wide pension funds totalled ca 23,100. Industry-wide pension funds handle approximately 1.0 per cent of all persons insured under the earnings-related pension acts.
The number of industry-wide pension funds has remained virtually unchanged during the 2000s.
Regulation of industry-wide pension funds
The Act on Insurance Funds (1164/1992) is applied to industry-wide pension funds. According to the Act, an industry-wide pension fund may have one or several founders. The founder must be a Finnish citizen or a citizen of another EEA country, or a corporation or foundation domiciled in Finland or another EEA country. On certain conditions, a general or a limited partnership may be the founder.
At fund meetings, the decision-making power in fund matters is exercised by the members of the fund (employees) and the partners (employers). The minimum number of members for an industry-wide pension fund handling statutory pension insurance is 300.
Engaging in activities in the form of an industry-wide pension fund requires that confirmation for the rules of the funds and changes to them is obtained from the Insurance Supervisory Authority and that the fund is reported for registration in the insurance funds register within the prescribed time. As a requirement for confirmation of the rules and their changes, the Insurance Supervisory Authority can request a sufficient guarantee capital or basic capital.
A new industry-wide pension fund can be established if a pension insurance company transfers some employer- or partner-specific part of the insurance portfolio under the Employees Pensions Act with assets and a certain solvency margin to a new industry-wide pension fund.
Industry-wide pension funds handling statutory pension provision
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