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 only statutory pensions or also offer voluntary supplementary pensions for their insured members. In company pension funds, voluntary supplementary pensions are financed solely by the employer.
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. An AB company pension fund offers both.
At year-end 2017, a total of 19,200 persons were insured in company pension funds. Roughly 20,800 persons were paid a pension from a company pension fund. This accounts for around 0.7 per cent of all persons insured for an earnings-related pension.
In the 2000s, the number of company pension funds has declined from 37 to 13. In 2016, the number of persons insured in a company pension fund was roughly 15 per cent of that at the beginning of the century.
Company pension funds at the beginning of 2019
- ABB Eläkesäätiö
- Eläkesäätiö Polaris Pensionsstiftelse
- Honeywell Oy:n Henkilökunnan Eläkesäätiö
- Kontinon Yhteiseläkesäätiö
- L-Fashion Group Oy:n Eläkesäätiö
- Maataloustuottajain Eläkesäätiö
- Orionin Eläkesäätiö
- Sandvik Eläkesäätiö
- Sanoma Eläkesäätiö
- Telian Eläkesäätiö (called Soneran Eläkesäätiö tup to 1 June 2018)
- UPM Sellutehtaiden eläkesäätiö
- Yara Suomen Eläkesäätiö
- Yleisradion Eläkesäätiö
Regulation of company pension funds
Company pension funds are governed by the Act on Company Pension Funds (1774/1995). Establishing a company pension fund requires that at least 300 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 for new industry-wide pension funds, a new company pension fund can be established if a pension insurance company transfers an employer- or partner-specific part of the insurance portfolio under the Employees Pensions Act (inlc. assets and a certain solvency margin) to a new company pension fund.
Eläkesäätiöyhdistys supervises the interests of the industry-wide and company pension funds.