Inspection of activities concerning wellbeing at work financed by employee pension companies, 2015: Practices concerning the financing of projects for wellbeing at work vary, risk-based considerations are not guiding the allocation of money
According to an inspection conducted by the Financial Supervisory Authority (FIN-FSA) of employee pension companies’ activities and financing of projects concerning wellbeing at work, the work done by the companies in the area of wellbeing at work has mainly been of high quality, and good results have been obtained. However, the allocation of financing provided for activities and projects concerning wellbeing at work has not, in all respects, been based on the management of disability risk.
‘The activity should more clearly reflect risk-based considerations. It would then focus on the prevention of a higher risk of work disability, for which purpose the earmarked component of the earnings-related pension contribution is collected,’ reminds Anneli Tuominen, Director General.
Disability pensions annually constitute a significant portion of the pension expenditure of the earnings-related pension scheme. Measures to prevent disability and thus curb related expenditures are important for the financing of the system.
Guidance needed
Later in the year, on the basis of a wide range of information obtained during the inspection, the FIN-FSA will issue more detailed guidelines on the principles applicable to activities concerning wellbeing at work.
The inspection was part of the ongoing supervision of the employee pension sector. The inspection, which was carried out in spring 2015, covered all six employee pension companies.
Employers and employees together disburse 24% of total payroll in earnings-related pension contributions. Each component of the earnings-related pension contribution is earmarked for a specific purpose. The management of disability risk accounts for 0.03% of payroll. The average figures are from 2015.
For further information, please contact
- Anneli Tuominen, Director General, tel. +358 10 831 5300
- Marja Nykänen, Deputy Director General, tel. +358 10 831 5247