Finnish earnings-related TyEL pension transfers amount to €430.1m in Q2

The number of Finnish earnings-related Employees Pensions Act (TyEL) pension transfers amounted to €430.1m in the second quarter of 2024, the Finnish Pension Alliance (Tela) has revealed.

During the second quarter of 2024, the number of TyEL transfers from one occupational pension company to another amounted to 2,162. For Self-Employed Persons’ Pensions Act (YEL) insurance the number of transfers was 2,964 and amounted to €70m.

The latest figures are a significant drop from the first quarter transfer statistics when the number of TyEL pension transfers amounted to €1.1bn and YEL insurance the total amounted to €84.5m.

Occupational pensions, including both TyEL or YEL insurance, can be transferred from one occupational pension company to another, provided that the insurance has been valid for at least one year in the same company before the transfer. There are four opportunities a year to transfer pensions – on the first day of January, April, July and October.

Tela has begun using a new statistical metric to express the volume of transfers between different pension insurance companies. Instead of the income from TyEL (employee) pensions levied using a basic rate, it now used the salary amount that is subject to TyEL pension insurance.

“We have made this change because from 2023 onwards, a new expense loading charge has been levied. The basic rate no longer includes an expense loading component. Thus, the premium income we previously reported using this metric no longer corresponds to the total premium income related to the transfer of policies between providers,” Tela said.

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