siirtopohJust

Siirtopohjus is a type of qualified pension scheme provided by Kela, the Social Insurance Institution of Finland. Established in 1990, the program aims to ensure that individuals with a defined contribution pension can enhance their retirement income.

The term "siirtopohjus" translates to "transfer base" in English. It allows individuals to transfer a portion of their pension payouts between defined contribution pension schemes. This includes private, occupational, and government-run pensions.

The benefit is only payable if the individual has been a member of a pension scheme for at least five years. The individual or their employer can contribute to the individual's pension, and they may choose to receive the benefit either as a lump sum or a monthly payout over several years.

Key qualifications require the individual to be eligible for a state pension and/or currently receiving benefits from another pension program. They must also submit an application that includes details of their pension plans, payout levels, and income requirements.

Once approved, individuals can consolidate their pension funds across multiple schemes, potentially increasing their overall retirement income. They can then choose whether to distribute the consolidated funds across plans, or merge them into a single account.

Both the pension provider and the state will assess and validate the consolidated funds. Only then will the individual be permitted to access and administer their transferred benefits.