Rehabilitation

Nearly 17,000 rehabilitees within the earnings-related pension system

In 2017, nearly 17,000 persons (or 1% of the workforce) received rehabilitation within the earnings-related pension system. In terms of numbers, the rehabilitees are approaching the number of new retirees on a disability pension. In 2017, roughly 18,600 persons retired on a disability pension.

The typical rehabilitee within the earnings-related pension system was 47 years old and suffered from a musculoskeletal disease. The rehabilitation was usually carried out in the form of a work try-out either for the current or a new employer.

rehabilitees-age-2005-2017

In 2017, the total expenses for rehabilitation under the earnings-related pension system was 151 million euros. The income compensation accounted for 130 million euros and the service expenses for 21 million euros. An average of 2,800 euros per month was paid as income compensation during rehabilitation.

In 2017, a total of 6,871 persons completed their rehabilitation. Of the rehabilitees, nearly 70 per cent returned to work or continued studying. Only 6 per cent retired on a full disability pension. The rehabilitation is considered successful if the rehabilitee finds work or continues to study and retirement on a disability pension is prevented.

Statistical tables and figures:

What is rehabilitation under the earnings-related pension scheme?

The rehabilitation under the Finnish earnings-related pension acts is vocational and individual and intended for persons of working age. The earnings-related pension insurers arrange and finance the rehabilitation. The purpose of the rehabilitation is to prevent that the individual retires early on a disability pension and to ensure that workers stay in the workforce for as long as possible, despite illnesses, handicaps or injuries.

Measures of the rehabilitation within the earnings-related pension system include guidance, investigations, work try-outs, work training, education, subsidies for starting or carrying on a business and various tools to make working easier.

Income compensation is paid during the rehabilitation period.

Who is the rehabilitation within the earnings-related pension system intended for?

The rehabilitation within the earnings-related pension system is intended for wage earners and self-employed persons who face the threat of retirement on a disability pension unless they take part in rehabilitation. An applicant for rehabilitation is required to be below their old-age retirement age, have a stabilised working life and a certain income level. In addition, the disease of the applicant must be such that it poses a threat of disability in the near future.

Description

Rehabilitation

Producer: Finnish Centre for Pensions
Website: Rehabilitation
Subject area: Social security, Rehabilitation under the earnings-related pension system
Part of the Official Statistics of Finland (OSF): No

Description

The statistics includes data on vocation rehabilitation under the earnings-related pension acts.

Data content

The statistics includes data on rehabilitation applications and decisions, the right to appeal, rehabilitees, means and expenses of rehabilitation within the earnings-related pension system and rehabilitation programs that have ended.

Categorizations

The data has been categorised by age, gender, rehabilitation background, medical diagnosis and sector.

Methods of data collection and source

The data for the rehabilitation statistics stems directly from the registers of the earnings-related pension providers and the Finnish Centre for Pensions. Information collected from the earnings-related pension providers include rehabilitation background, type of rehabilitation service, rehabilitation service expenses and the reason the rehabilitation program has ended.

Update frequency

The data is updated once a year.

Time of completion or release

For a more detailed schedule, consult the Release calendar, consult the Release Calendar.

Time series

The first rehabilitation data are from the year 1992.

Key words

Rehabilitation within the earnings-related pension system, type of rehabilitation service, rehabilitation expenses, rehabilitation application, rehabilitation decision

Concepts and Definition

Rehabilitation within the earnings-related pension system

Rehabilitation within the earnings-related pension system is individual and vocational an intended for persons of working age. The aim of the rehabilitation is to help the employee or self-employed person to continue working despite an illness, handicap or injury. In other words, the aim is to prevent disability and postpone retirement.

Vocational rehabilitation takes precedence over the disability pension. Vocational rehabilitation is a statutory benefit of the earnings-related pension scheme. The rehabilitation applicant has the right to appeal all decisions concerning rehabilitation within the earnings-related pension system. The pension providers (earnings-related pension insurance companies, company pension funds and industry-wide pension funds) are in charge of the rehabilitation within the earnings-related pension system.

Requirements for getting rehabilitation within the earnings-related pension system

An employee or self-employed person under the age of 63 has the right to rehabilitation if they:

  • have an appropriately diagnosed illness, handicap or injury that forms a threat of disability and a risk of retirement on a disability pension within the next few years,
  • meet the required earnings limit,
  • have a stabilised working life and an adequately long working history and have earned a sufficient amount of pension,
  • are deemed to benefit from the rehabilitation, and
  • are not entitled to rehabilitation based on the motor or workers’ compensation insurance.

Means of vocational rehabilitation

Rehabilitation guidance
The rehabilitation experts of your earnings-related pension provider offer general advice and detailed guidance and instructions on vocational rehabilitation.

Review
Rehabilitation always requires an appropriate rehabilitation plan. Reviews are used to draw up a rehabilitation plan. When needed, the person who has been granted rehabilitation can turn to the service provider for help with drawing up the rehabilitation plan. Earnings-related pension providers do not finance reports that estimate the need for rehabilitation.

Workplace rehabilitation
Workplace rehabilitation is the primary means of rehabilitation under the earnings-related pension system. Workplace rehabilitation can take the form of a work try-out either for former or new work tasks. The work try-out lasts for a few months. If necessary, the work try-out can continue as work counselling. Work counselling is a longer period of training for new work tasks than the work try-out period.

Education
Education can be additional training in the form of a short-term course or longer-term retraining for new work tasks. Supporting basic education and basic training is not part of rehabilitation under the earnings-related pension system.

Business subsidy
The business subsidy is an interest-free or low-interest loan or allowance to set up or continue a business. As a rule, the business subsidy is granted as an allowance for the procurement of tools relating to the exercise of a profession. The precondition for getting the business subsidy is that the rehabilitee earns their income from the business.

Rehabilitation benefits

Rehabilitation allowance
The rehabilitation allowance is paid to a person who, before starting the rehabilitation, got a wage, a sickness allowance or an unemployment allowance. The allowance amounts to the amount of the disability pension under the acts on the earnings-related pension, increased by 33 per cent. The rehabilitation allowance is paid only during an active rehabilitation period.

Partial rehabilitation allowance
A partial rehabilitation allowance is paid to a rehabilitee who, while getting vocational rehabilitation, continues working partially. A partial rehabilitation allowance amounts to half of the full allowance.

Rehabilitation assistance
A discretionary rehabilitation assistance can be paid for the period while the rehabilitation plan is drawn, while waiting for rehabilitation or between rehabilitation periods. The assistance is paid for a maximum of three months. For the self-employed (insured under the Self-employed Persons’ Pensions Act or the Farmers’ Pensions Act) and for municipal workers (insured under the Local Government Pensions Act), the rehabilitation assistance can be granted to support employment for a period after rehabilitation if the rehabilitee has no other income.

The rehabilitation assistance is granted for a fixed period and of the same amount as the disability pension (without the 33 per cent increment). The rehabilitation assistance can also be paid as a partial rehabilitation assistance.

Cash rehabilitation benefit
The cash rehabilitation benefit is a fixed-term disability pension that can be granted when the rehabilitee’s ability to work is expected to improve as a result of treatment or rehabilitation. The precondition is that the disability is estimated to last for at least one year and that the period on a sickness allowance is not considered long enough to restore the ability to work.

A precondition for granting the cash rehabilitation benefit is that the applicant has drawn up a treatment or rehabilitation plan together with health care or occupation health care.

Rehabilitation increment
The rehabilitation increment is an increment of the cash rehabilitation benefit or the disability pension granted for the active rehabilitation period. The increment is 33 per cent of the paid pension, and it is paid for full months of rehabilitation.

Other expenses
The rehabilitee is paid immediate expenses (such as travel and study expenses) relating to the rehabilitation within the earnings-related pension scheme.

 

OUR EXPERTS IN THIS AREA: Jari Kannisto, Leena Saarnio