eläkekassan

Eläkekassa is a term originating from Finnish social security legislation, referring to a pension fund or a statutory pension institution. These entities are responsible for managing and paying out statutory earnings-related pensions to individuals in Finland. Eläkekassat operate under strict government regulation and are overseen by the Finnish Social Insurance Institution (Kela) and the Financial Supervisory Authority.

The primary function of an eläkekassa is to collect pension contributions from employers and employees. These contributions are then invested to ensure the long-term solvency of the pension system. The accumulated funds are used to pay out pensions to individuals who have reached retirement age or are receiving disability pensions. The system is designed to be a defined benefit scheme, meaning the pension amount is based on an individual's earnings history and years of service.

There are different types of eläkekassat, including industry-specific funds and funds covering employees of specific companies or organizations. While their legal status and operational details might vary slightly, their core mission remains the same: to secure the pension benefits of Finnish workers. The Finnish pension system is a cornerstone of its social welfare model, and eläkekassat play a crucial role in its implementation and administration, contributing to the financial security of the elderly and those unable to work due to disability.