Company Pension Funds
A company pension fund is a fund established by one or several employers. It grants pensions to the persons insured with the company pension fund. Company pension funds are divided into A, B and AB funds, depending on whether they arrange statutory pensions or also offer voluntary supplementary pensions for their insured members.
An A company pension fund offers only voluntary supplementary pensions while a B company pension fund handles only statutory pensions under the Employees Pensions Act. As of the beginning of 2022, a company pension fund that manages statutory earnings-related pensions cannot manage supplementary pensions, as well. This does not apply to company pension funds that have operated before 1 January 2022. In other words, AB company pension funds that arrange pensions under the Employees Pensions Act (department B) in addition to voluntary supplementary pensions (department A) may continue their operations as before.
Around 1 per cent of all persons insured for an earnings-related pension were insured in company pension funds.
In the 2000s, the number of company pension funds has declined from 37 to 8.
Company pension funds that handle statutory pension provision at the beginning of 2022
- L-Fashion Group Oy:n Eläkesäätiö
- Orionin Eläkesäätiö
- Sandvik Eläkesäätiö
- Sanoma Eläkesäätiö
- Telian Eläkesäätiö
- UPM Sellutehtaiden eläkesäätiö
- Yara Suomen Eläkesäätiö
- Yleisradion Eläkesäätiö
The Statistical Database of the Finnish Centre for Pensions provides more information on pension providers, such as the number of their insured persons and pensioners as well as financial information.
Regulation of company pension funds
Company pension funds are governed by the Act on Company and Industry-wide Pension Funds (946/2021). Establishing a company pension fund requires that at least 150 persons are insured. On the basis of a stipulation in the rules of the company pension fund, the fund’s sphere of activities may include also certain other persons. Legally, the company pension fund is a separate unit, where the employer is represented in the administration.
Engaging in activities through a company pension fund requires that the rules of the funds and changes to them are confirmed by the Financial Supervisory Authority. In addition, the fund has to be registered in the register of company pension funds within a prescribed time limit.
As with new industry-wide pension funds, new company pension funds can also be established so that the earnings-related pension fund transfers its employer- or partner-specific insurance portfolio under the Employees Pensions Act and the corresponding solvency capital to the new company pension fund.
The general Act on Company and Industry-wide Pension Funds is also applied to supplementary company pension funds that complement statutory and supplementary pensions. The supplementary regulations of the Act on Supplementary Company and Industry-wide Pension Funds (947/2021) are also applied to supplementary company pension funds.
Eläkesäätiöyhdistys supervises the interests of the industry-wide and company pension funds.