The earnings-related pension is part of the statutory social security and based on insurance contributions paid from earnings. The earned pension right is subject to the constitutional protection of property.
Checking the pension record
Every third year, private sector earnings-related pension providers send out pension records by mail to workers, employers and self-employed persons. For persons born in 1961 or earlier, the record is sent every year. It is also possible to check the pension record and its up-to-date information via one’s earnings-related pension provider’s web service or at Työeläke.fi. If a person works in the public sector, the pension record can be checked via Keva’s web service. On approaching the retirement age, Keva will send the pension record by post once.
The pension record includes information on the earnings-related pension a person has so far accrued. The record contains information of work done for public and private sector employers, as a self-employed person and of unsalaried periods.
If the data need correcting, the private sector pension provider will sort out any missing or incorrect data for the last six years upon the person’s request. For data that is older than that, the person has to present indisputable employment facts to register the employment information. If the work is in the public sector, Keva will sort out any missing or incorrect data. There is no time limit for the correction of this data.
The accrued pension retains its value
The earnings-related pension pot grows each year by 1.5 per cent of the annual earnings. During a transition period (2017-2025) the pension will grow by 1.7 per cent for those aged 53-62 years. The life expectancy coefficient also affects the amount of the accrued pension. The coefficient is determined on the basis of life expectancy. Earnings-related pensions are defined-benefit pensions, which means that the pension assets do not directly affect the amounts of pensions paid.
Pensions in payment are adjusted with indexes in order to retain pensioners’ income level and purchasing power. When calculating the pension, the salary data for the various years is adjusted with the wage coefficient, while the pension paid is adjusted with the earnings-related pension index. These adjustments are made once a year.
The accrued pension is subject to the vesting principle. It means that the pension providers are jointly and severally liable for fulfilling the pension commitment. The implementation of the vesting principle is ensured by collecting the data on employments and self-employments in the registers of the Finnish Centre for Pensions and the authorised pension providers.
The legal protection system protects benefits
Legal protection in the administration means that the conformity to law are realised and that the rights and benefits of the individuals and the community and the implementation of those rights and benefits are protected.
The legal protection is ensured with a twofold legal protection system. Preventive modes of appeal ensure that issues are solved correctly and according to law at the earliest possible stage. Retroactive modes of appeal ensure that incorrect decisions can be corrected and that the procedure follows the law.
The most important guarantee of preventive modes of appeal is the fact that the administrative procedure is governed by law.
Preventive modes of appeal include:
- the processing of cases adhering to the proper form,
- rules on disqualification,
- hearing of the party involved, and
- the justification of decisions.
Retroactive modes of appeal are divided into
- ordinary modes of appeal, and
- extraordinary modes of appeal.
Appealing a pension decision
An earnings-related pension decision can be appealed to the Pension Appeal Court. There are separate rules regarding appeals in pension matters of the employees of the Bank of Finland, the Orthodox Church and the regional government of Åland.
A person can appeal a decision of the Pension Appeal Court to the Insurance Court. One cannot appeal a decision of the Insurance Court.
The same appeal process applies to debiting imposed by the pension provider or the Finnish Centre for Pensions and the employer’s withholding of the employee’s pension contribution.
The Social Security Appeal Board handles the appeals of the national pension decisions. A person can appeal its decision to the Insurance Court.