Administration and Supervision of the National Pension Scheme
The national pension scheme is administered by the Social Insurance Institution. In addition to the national pensions, the Social Insurance Institution also handles other basic social security: parts of the unemployment security (the basic unemployment allowance and the labour market support), family benefits, and the financial aid for students. The Social Insurance Institution also pays out health insurance benefits (earnings-related or minimum daily allowance).
National pensions are financed by public funds. Until 2010, national pensions were partly funded by employer contributions.
The administration of the Social Insurance Institution of Finland is determined in its own act
The Social Insurance Institution is an independent social security institution supervised by Parliament. It has its own administration and finances. Its position, responsibilities and administration are determined in the Act on the Social Insurance Institution.
The supervision of the Social Insurance Institution is the responsibility of 12 representatives appointed by Parliament. The auditors selected by the representatives audit the accounts of the Social Insurance Institution.
The operations of the Social Insurance Institution is managed and developed by the Board of Directors appointed by the Trustees. The Board has 10 members at the most, in addition to the Director General and his or her deputy. The President appoints the Director General of the Social Insurance Institution.
The Director General is responsible for presenting issues to the Board of Directors and prepares the standing order for the Board to decide. In addition to the Director General, the Social Insurance Institution has a maximum of five Directors. The President appoints the Director General and the Directors on the basis of a proposal presented by the Trustees.
- Parliamentary Trustees of the Social Insurance Institution
- Board of the Social Insurance Institution
The regional offices of the Social Insurance Institution issue nearly all benefit decisions
The central administration of the Social Insurance Institution operates mainly in Helsinki. The institution is further divided into four insurance regions with a regional office in each. The insurance regions are diviced into insurance districts with at least one insurance service point in each. The special administrative units equate to insurance districts. In addition to the offices, the Social Insurance Institution has separate units for debt collection.
The offices issue decisions on nearly all benefits, apart from those concerning disability pensions, which are issued centrally by the central administration. Appeals to pension decisions issued by the Social Insurance Institution are handled by the Social Security Appeal Board.
Cooperation between the Social Insurance Institution and the earnings-related pension system
The Social Insurance Institution and the Finnish Centre for Pensions cooperate closely and make use of each other’s register data when processing pension applications. The pension providers and the Social Insurance Institution also make use of each other’s registers in the handling of pension applications. National pension and earnings-related pension is applied for using the same application form.
The Social Insurance Institution functions as the contact institution for pension applications coming to Finland from abroad, while the Finnish Centre for Pensions handles and transmits pension applications sent by residents in Finland to other EU/EEA and social security agreement countries.