työeläkelaitos

Työeläkelaitos, commonly known as the Finnish Occupational Pensions Act (TyEL) system, is a state-regulated framework for occupational pension schemes in Finland. It ensures that employees receive a pension based on their employment history and contributions from both the employer and the employee. The system is designed to complement Finland’s public pension scheme, providing additional financial security in retirement.

The TyEL system was established in 1967 to standardize occupational pensions and ensure fair treatment across different employers. It applies to most employees in Finland, with some exceptions, such as self-employed individuals and certain public sector workers covered by separate pension schemes. Employers are legally required to provide an occupational pension plan for their employees, typically through a pension fund or insurance company.

Contributions to the TyEL pension are divided between the employer and the employee, usually amounting to around 16–20% of the employee’s salary, depending on the specific pension plan. These contributions are invested by the pension fund, which manages the assets to generate returns over time. The pension benefits are calculated based on factors such as the employee’s salary, years of service, and the fund’s performance.

Upon retirement, employees receive a monthly pension payment, which is typically a percentage of their final salary, adjusted for their years of service. The system also includes provisions for early retirement, disability pensions, and survivor benefits for dependents. Additionally, occupational pensions can be combined with Finland’s public pension (Kela’s basic pension) to ensure a stable income in retirement.

The TyEL system is administered by the Finnish Centre for Pensions (Eläketurvakeskus), which oversees compliance and provides guidance to employers and employees. The system is designed to be flexible, allowing for different types of pension plans, including defined benefit and defined contribution models, depending on the employer’s choice. Overall, Työeläkelaitos plays a crucial role in Finland’s multi-pillar pension structure, ensuring financial security for workers in their retirement years.