Industry-wide pension funds

Industry-wide pension funds grant pensions to the members of the fund and to others who are insured with the fund. Industry-wide pension funds differ from pension insurance companies in that the former are either employer- or field-specific.

In other words, members of an industry-wide pension fund are employees of one or several employers who have an economic or a functional connection. The employees of employers belonging to the same group may also be members of a joint industry-wide pension fund.

In addition to statutory earnings-related pensions, industry-wide pension funds may also offer their members supplementary pensions through bonus funds or departments. In such cases, the employees can participate in the financing of supplementary pensions.

At the end of 2017, around 27,000 persons were insured with industry-wide pension funds under the Employees Pensions Act or the Self-employed Persons’ Pensions Act.  The funds paid pensions to around 25,800 persons. Industry-wide pension funds insure approximately 1.0 per cent of all persons insured under the earnings-related pension acts.

The number of industry-wide pension funds has remained virtually unchanged during the 2000s.

Industry-wide pension funds that handle statutory pension provision

  • Apteekkien Eläkekassa
  • Eläkekassa Verso
  • Liikennepalvelualojen Eläkekassa Viabek (filed for bankruptcy)
  • OP Bank Group Pension Fund
  • Reka Eläkekassa
  • Valion Eläkekassa

Regulation of industry-wide pension funds

Industry-wide pension funds are governed by the Act on Insurance Funds (1164/1992). According to the Act, an industry-wide pension fund may have one or several founders. The founder must be a Finnish citizen or a citizen of another EEA country, or a corporation or foundation domiciled in Finland or another EEA country. Under certain conditions, a general or a limited partnership may found an industry-wide pension fund.

At fund meetings, the decision-making power in fund matters is exercised by the members of the fund (employees) and the partners (employers). An industry-wide pension fund that handles statutory pension insurance must have at least 300 members.

Engaging in activities in the form of an industry-wide pension fund requires that the Insurance Supervisory Authority confirms the rules of the funds and changes to them. In addition, the fund has to be registered in the insurance funds register within a prescribed time limit. As a requirement for confirmation of the rules and their changes, the Insurance Supervisory Authority can request a sufficient guarantee capital or basic capital.

A new industry-wide pension fund can be established also if a pension insurance company transfers an employer- or partner-specific part of the insurance portfolio under the Employees Pensions Act (incl. assets and a certain solvency margin) to a new industry-wide pension fund.