Eläkesäätiöt

Eläkesäätiöt, often translated as pension foundations, are Finnish entities established to manage and administer occupational pensions for employees. They are a key component of the Finnish earnings-related pension system. These foundations are independent, non-profit organizations governed by a board of trustees. Their primary purpose is to ensure the solvency and long-term sustainability of pension obligations.

Eläkesäätiöt are funded through contributions from employers and, in some cases, employees, as well as through investment returns generated from their assets. The assets are typically invested in a diversified portfolio of stocks, bonds, real estate, and other financial instruments to maximize returns while managing risk. The specific regulations governing their operations, investments, and solvency are set by Finnish legislation.

The role of eläkesäätiöt is to pay out pension benefits to eligible individuals upon retirement, disability, or in the case of survivors' pensions. They are supervised by the Finnish Financial Supervisory Authority (FIN-FSA) to ensure they meet their financial commitments and operate in compliance with the law. The system aims to provide a secure and reliable pension for workers in Finland, supplementing the basic pension provided by Kela.