Changes in insurance for work abroad: Competence of the Finnish Centre for Pensions to be extended as of 1 January 2021
The tasks of the Finnish Centre for Pensions are extended regarding exemption procedures from applicable law in situations that comply with the EU regulations on social security and social security agreements. In the future, the Finnish Centre for Pensions will also issue decisions regarding exemptions for insuring work abroad.
So far, the Ministry of Social Affairs and Health have issued said decisions.
The aim of this change is to harmonize the appeal procedure for exemptions regarding insuring work abroad so that decisions issued by the Finnish Centre for Pensions are appealed to the Pension Appeal Board and the Insurance Court.
Exemption procedures for worker posted to the US
The Finnish Centre for Pensions will be the competent authority also in exemption procedures under the social security agreement between Finland and the United States. This means that the Finnish Centre for Pensions will handle exemption applications for workers that are posted to the United States.
The amendment of the Act on the Finnish Centre for Pensions that will take effect on 1 January 2021 reinforces the competence of the Finnish Centre for Pensions to issue A1 certificates also in situations in which the worker or self-employed person, based on EU’s social security regulation, is covered by the social security of their country of work (Finland).
Underlying the legal amendment is a decision made by the commission that handles the coordination of social security systems in the EU. The decision states that A1 certificates can be issued, upon application, also by the country of work (in so-call main rule situations). The A1 certificate may be necessary in these rare situations, for example, if the social security authority of another EU country demands a certificate to attest that the worker is covered by Finnish legislation while working in Finland.
In general, the A1 certificate is granted upon application to a worker whose social security is to remain under the laws of the sending country when the worker is posted abroad temporarily.