The Pension Fund is responsible for financing the pensions paid to Church personnel and for the investment of pension funds. Pensions are funded by contributions from employers and employees.
The history of the Church Pension Fund dates back to 1991. At the beginning of the operations, assets not used to pay pensions were invested in the pension fund to cover future pension liabilities. Over the past few years, the Church Pension Fund has shifted from the accrual phase to the transition period, where the amount of pension expenditure permanently exceeds the amount of pension contribution income. This means that the Fund’s investment income is also used to pay pensions.
The Pension Fund has not been assigned to individual pension liabilities. Instead, it serves as a buffer fund, i.e. the fund does not generate individually covered pension liabilities, as in the TyEL pension scheme. The Pension Fund also has no capital provisions.
