Eläkesäätiölaki

Eläkesäätiölaki, or the Finnish Act on Pension Foundations, is legislation governing the establishment and operation of pension foundations in Finland. These foundations are a specific type of private pension institution established by employers to provide supplementary pensions to their employees. The law outlines the requirements for their formation, including capital needs and organizational structure.

The primary purpose of a pension foundation is to manage the pension liabilities undertaken by an employer. They operate on a contractual basis, with the employer transferring funds to the foundation, which then invests these assets to meet future pension obligations. The Eläkesäätiölaki specifies rules regarding investment policies, asset management, and the solvency of these foundations, ensuring their financial stability.

The law also details the governance and oversight of pension foundations. It mandates the establishment of a board of directors responsible for the foundation's management and representation. Supervisory authorities, such as the Finnish Financial Supervisory Authority (FIN-FSA), monitor the operations of pension foundations to ensure compliance with the law and the protection of beneficiaries. The Act aims to provide a secure and transparent framework for private pension arrangements, complementing the statutory pension system in Finland.