Työeläkevakuutusyhtiöiden

Työeläkevakuutus, commonly referred to as TyEL, is Finland’s earnings-related pension insurance for employees. It covers employees in the private sector and other workers bound by collective agreements, and it forms part of the Finnish earnings-related pension system. TyEL supplements the basic national pension provided by Kela.

Benefits provided by TyEL include old-age, disability, and survivors’ pensions. The amount a person receives depends on earned income, years of contributing to TyEL, and the accrual rules set by law. Benefits are paid by private-sector pension providers that administer TyEL accounts and manage the funds, with the aim of delivering a replacement income in retirement in addition to the national pension.

Financing and administration are based on mandatory participation for employees. Contributions are paid by both employers and employees into individual TyEL accounts. The contribution rates and terms are determined by legislation and vary with earnings and other factors. The funds are collected and managed by TyEL providers, which include pension insurers and pension funds that invest assets and pay out benefits in accordance with regulatory requirements.

Oversight and related systems: The Finnish Centre for Pensions (Eläketurvakeskus) monitors the TyEL system, compiles statistics, and provides information and pension projections to the public. Self-employed workers have a separate pension arrangement called YEL, while those with low or no earned income may rely on Kela’s basic or guaranteed pensions. TyEL thus operates alongside these schemes to deliver earnings-related retirement income.