Earnings-related Pension Acts Define Content of Pension Provision – Instructions Create Concise Practices
The contents of earnings-related pension provision are determined in the pension acts. The private-sector earnings-related pension acts are the following:
- Employees Pensions Act (TyEL)
- Self-Employed Persons’ Pensions Act (YEL)
- Farmers’ Pensions Act (MYEL)
- Seafarer’s Pensions Act (MEL).
Since the pension provision is defined by law, there are no differences between the pension providers concerning the contents of private-sector TyEL and YEL pension provision.
Public-sector pension provision is governed by the Local Government Employees Pensions Act (KuEL) and the State Employees Pensions Act (VaEL). The Evangelical-Lutheran Church Pensions Act (KiEL) and the pension regulations based on the Orthodox Church Act define earnings-related pension provision.
There are separate pension acts for the highest elected state officials (Members of Parliament and the President). The employees of the Bank of Finland, the Social Insurance Institution of Finland and the Regional Government of Åland have their own pension regulations.
Application instructions compiled in cooperation
The application instructions are recommendations on the application of the earnings-related pension acts, issued by the Finnish Centre for Pensions for the pension providers. The purpose of the instructions is to promote a coherent application of the earnings-related pension legislation by the pension providers.
The Finnish Centre for Pensions issues the application instructions in cooperation with the pension providers and other partners of cooperation. The instructions state, for instance, how the earnings-related pension acts and the principles used in the division of costs, as well as other regulations which affect the implementation of earnings-related pension provision, are to be applied.