Administration and Supervision
The Finnish statutory pension provision consists of a work-based earnings-related pension a national pension system that guarantees a minimum income. National pensions are paid to those whose earnings-related pension is very low.
Statutory earnings-related pensions are managed by private pension providers and those established based on an act. Kela manages minimum pensions. The operations of the pension system and related legislation are the responsibility of the Ministry of Social Affairs and Health. The Financial Supervisory Authority supervises earnings-related pension providers. Public sector providers are also supervised by the Ministry of Finances. Kela’s administration and operations are supervised by trustees appointed by Parliament.
Decentralised administration of the earnings-related pension system
The administration of the earnings-related pension system is decentralised to earnings-related pension providers. Private sector earnings-related pension providers, special pension providers, industry-wide pension funds, company pension funds and public sector pension providers manage statutory pensions. Certain functions are handled centrally by the Finnish Centre for Pensions, the coordinating body of the earnings-related pension system. Kela manages the national pension system.