The Church Pension Fund safeguards pensions
The Church Pension Fund serves as the pension provider for the Evangelical-Lutheran Church of Finland. The Fund is responsible for financing the pensions paid to Church personnel and for the investment of pension funds. The pensions are financed by the pension contributions collected from employers and employees.
The history of the Church Pension Fund dates back to 1991. At the start of the activities, any assets not being paid out as pensions were consolidated in the pension fund for the purpose of covering the future pension liability. During recent years, the Fund has shifted from this accrual phase to a transition period in which the amount of the pension expenditure permanently exceeds the amount of the pension contributions. The result is that the Fund also needs to utilise investment income for the payment of pensions.
The Fund operates as a buffer fund, in other words, the fund is not linked to individual pension entitlements, as is the case with the earnings-related pension scheme under the Employees Pensions Act. As opposed to other pension providers, the Fund is not subject to solvency regulations.
Development of the Church Pension Fund’s investments 1991–2019: