Earnings-related pension benefits are earned statutory provision
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.
Check your pension record
Every third year, earnings-related pension providers send out pension records by mail to workers, employers and self-employed persons. If you are over 60 years old, you will get the record every year. You can also check your pension record and its up-to-date information via your earnings-related pension provider’s web service or at Työeläke.fi. If you work in the public sector, you can check your pension record via Keva’s web service.
The pension record includes information on the earnings-related pension you have accrued (for work or unsalaried periods) up to the end of the previous year. The record contains information of your work in the public and private sector.
You have to check that the data on your pension record is correct as far as your private sector employments are concerned. Your pension provider will sort out any missing or incorrect data for the last six years. For data that is older than that, you have to present indisputable employment facts to register the employment information. If you work in the public sector, there is no time limit for the correction of data.
Your accrued pension retains its value
Your earnings-related pension accrues based on your annual earnings according to an accrual rate that depends on your age. The life expectancy coefficient, which affects the pension amount, was introduced in 2010. It is determined on the basis of life expectancy. The earnings-related pension scheme is a defined-benefit scheme, which means that the pension assets do not directly affect the amounts of the paid pensions.
Pensions in payment are adjusted with indexes in order to retain pensioners’ income level and purchasing power. When calculating your pension, your salary data for the various years is adjusted with the wage coefficient, while the pension you are paid is adjusted with the earnings-related pension index. These adjustments are made once a year.
Your accrued pension is subject to the vesting principle. It means that the pension providers are jointly and severally liable for fulfilling the pension commitment made to you. The implementation of the vesting principle is ensured by collecting the data on your employments and self-employments in the registers of the Finnish Centre for Pensions and the authorised pension providers.
The legal protection system protects your 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.
You can appeal a decision of the Pension Appeal Court to the Insurance Court. You 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.
You can appeal a decision concerning your national pension to the Social Security Appeal Board. You can appeal its decision to the Insurance Court.
Appealing an EU/EEA pension decision
You can appeal an international pension decisions to the country that issued the decision. The EU Regulation on social security (883/2004) and the implementing regulation (987/2009) came into force on 1 May 2010. They stipulate that decisions that have been issued can be appealed immediately after getting the decision. After getting a summary of all decisions made in EU Member States (you have to request it from the Finnish Centre for Pensions), you can request that the decision of one or several countries be re-examined if you find that the decisions have a negative synergy on your pension rights.
Decision issued before 1 May 2010 can be appealed after the Finnish Centre for Pensions has compiled (upon your request) a summary of all decisions made in EU Member States. However, you can appeal a decision concerning the conditions for getting a disability pension immediately.