Lakisääteisen työeläkevakuutuksen vakuutustekniikkaa -käsikirjan päivitys

Abstract

This paper is an update of the book Lakisääteisen eläkevakuuttamisen vakuutustekniikkaa.

Since the last update of the book there have been major changes in Finnish statutory earnings-related pension system. Most notable change is legislation reform of Finnish statutory pension system in 2017. Another major change was solvency regulation reform which changed the way solvency requirements are calculated. There have also been several minor tweaks in legislation and in actuarial principles along the years. All these changes made the last version of the book outdated so motivation for this paper was bring the book up to date.

The paper discusses the principles of funding of Finnish statutory pension system on a general level. Paper also explains the legislative and regulatory framework that defines the insurance technics applied in Finnish statutory pension system. Main focus of this paper is to introduce the chosen actuarial principles and related formulae in detail. Calculation of insurance premiums and technical provisions as well as how equity linked buffer fund and solvency requirements are defined are also covered thoroughly in this paper. Also a so-called Z-model that models duration of disability pensions is described in the paper.

Although paper mainly discusses Finnish statutory employees’ pension insurance TyEL other types of insurance under statutory pension system are also described in some detail.

This paper will be published by Finnish Centre for Pensions.