eläkesäätiö

An eläkesäätiö, often translated as a pension foundation or pension fund, is a legal entity established in Finland to manage and provide occupational pensions. These foundations are independent organizations, distinct from the employers who establish them, and are governed by specific legislation, primarily the Act on Pension Foundations (Eläkesäätiölaki).

The primary purpose of an eläkesäätiö is to secure the pension benefits promised to employees by their employers. They collect contributions from employers and invest these funds to ensure they grow and can meet future pension obligations. The investment activities are strictly regulated to ensure the security and profitability of the assets.

Eläkesäätiöt are typically established by larger companies or industry groups. They operate on a non-profit basis, meaning any surplus generated is used to strengthen the foundation's financial position or to reduce future contribution requirements. Their governance involves a board of directors, often comprising representatives from both the employer and employees, as well as investment professionals.

The Finnish social security system involves several actors responsible for managing pensions, and eläkesäätiöt are a significant part of this landscape, alongside statutory pension insurance companies (työeläkevakuutusyhtiöt) and the Finnish Centre for Pensions (Kela). These foundations play a crucial role in the Finnish occupational pension system by providing a stable and well-managed source of retirement income for many workers.