Työeläkekassa

Työeläkekassa, often translated as "earnings-related pension fund" or "occupational pension fund" in English, is a key component of the Finnish pension system. These funds are responsible for managing and investing the contributions paid by employers and employees to finance the statutory earnings-related pensions. The Finnish pension system is largely funded on a pay-as-you-go basis, meaning current contributions primarily fund current pension payments, but earnings-related pension funds play a crucial role in ensuring the long-term sustainability of the system through their investments.

There are several types of earnings-related pension providers in Finland, including the Finnish Centre for Pensions (Keva), which serves the public sector, and several private sector pension insurance companies and pension foundations. These institutions are regulated by the Finnish Financial Supervisory Authority. Their primary objective is to ensure that sufficient funds are available to pay pensions now and in the future, while also seeking to achieve a reasonable rate of return on their investments. The investments are made in a diversified portfolio, including equities, fixed-income securities, and real estate, adhering to strict investment principles and risk management practices. The earnings-related pension system in Finland is mandatory for all working individuals, and the pension accrued is based on an individual's earnings and years of employment.