Varma’s administrative cost contribution will decrease next year – strong solvency guarantees the best client bonuses

The administrative cost contributions of earnings-related pension insurance companies will decrease at the start of next year. For Varma’s customers, this means a reduction in the administrative cost component that is included in the TyEL insurance contribution, depending on the size of the company, by as much as over one fifth compared to before. As the most solvent earnings-related pension company, we also pay the highest client bonuses. Our goal is to continue to be the overall lowest-priced pension insurer.

The administrative cost contribution is a component of the TyEL contribution required for implementing earnings-related pensions and managing insurance. Since the start of this year, every earnings-related pension insurance company has set its own administrative cost contribution. The level of the administrative cost contribution is affected by the pension company’s operational efficiency.

We will lower our already competitive administrative cost contributions for next year. Depending on the size of the company, the administrative cost contribution could be as much as one fifth lower than before. As our customer, you benefit from this in the form of a lower TyEL contribution.

We place great importance on being able to develop our operations and our customer service for the long term – now and for years to come. We provide our customers with smooth digital services, quality pension insurance services and successful rehabilitation solutions. We are an effective partner in supporting work ability, and sustainability is at the heart of everything we do.

Varma is the most solvent pension company and pays the best client bonuses

Client bonuses paid on the basis of the pension company’s solvency are an even bigger factor in the total cost of customers’ TyEL insurance than the administrative cost contributions.

Varma has been the most solvent pension insurance company in Finland for many years now, which means higher client bonuses and, in turn, lower earnings-related pension insurance contributions for our customers. Thanks to our strong solvency, we are extremely well-positioned to pay excellent client bonuses also in the coming years.

Estimate the TyEL contribution for 2024 in the Varma Online Service

You can calculate an estimate of the TyEL contribution for 2024 in the Varma Online Service. The contribution forecast service always uses the most precise estimate of the 2024 TyEL contribution percentages, Varma’s administrative cost contribution and client bonuses. The Ministry of Social Affairs and Health will confirm the final TyEL contribution percentages for 2024 later in the autumn.

Making a TyEL contribution forecast is easy:

  1. Log in to the Varma Online Service.
  2. Go to the Insurance section and select the ‘Forecasts and reports’ tab.
  3. Select the year for which you want to make the forecast and click on ‘Make a new forecast’.
  4. Enter your estimate of the payroll for the forecast year and click on ‘Make a forecast’.

See also:

Estimate the TyEL contribution for 2024 in the Varma Online Service

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