Rising Retirement Ages in the Public Sector

The pension negotiations led by the Ministry of Social Affairs and Health concerning the employees of local governments, the State, the Church and Kela have been concluded. The public-sector pension reform follows the agreed pension reform for the private sector.

According to a bulletin published by the Ministry of Social Affairs and Health, the occupational retirement ages will rise, while the individual retirement ages will not.

The earliest eligibility age for old-age pension in the public sector will rise from the current 63 years for those born in 1955 or later.

The retirement age will increase gradually by three months per age cohort, until it is 65 years. Those born in 1962 will be the first age cohort with a retirement age of 65 years.

Public-sector pension acts to merge

The four pension acts of the local governments, the State, the Evangelical-Lutheran Church and Kela will merge into one public-sector pension act. Keva will handle the execution of the public-sector pension provision.

The pension reform must be passed by Parliament. All government bills relating to the reform are to come before Parliament in late summer, and the reform is to come into effect as of the beginning of 2017.

The reform does not apply to pensions in payment or to pensions accrued before 2017. The new retirement ages will apply to persons born in 1955 or later.

More than half a million Finnish citizens are employed by the State and the local governments.