Client bonuses

Client bonuses lower your insurance contributions. They are paid out once a year in the spring. All of Varma's TyEL customers will benefit from client bonuses right from the start. Varma is by far the most efficient pension insurance company so our client bonuses are excellent.

Client bonuses lower your insurance contributions

The client bonus is an annual discount in insurance contributions. In 2021, we paid the client bonuses for TyEL insurance contributions on 16 March 2021. Client bonuses are usually allocated to upcoming invoices, but we can also deposit the client bonus into the company’s bank account. You can easily check your client bonus in Varma Online Service.

All customers who have taken out a TyEL insurance policy with Varma benefit from the client bonuses right from the start of their customer relationship. It pays to be a long-term customer of Varma. The longer an insurance policy is valid at Varma and the more wages are paid, the higher your client bonus will be.

Check your client bonuses in Varma Online Service

How are client bonuses formed?

The more solvent and the more efficient a pension company is, the better are the client bonuses it pays out: 1% of the solvency capital + savings on operating costs = client bonuses

We are by far the most efficient pension company

Varma uses by far the smallest percentage of the contributions reserved for operating costs. Varma's operating costs have been low for years and the trend is descendent. Varma's percentage of operating costs in 2020 is the smallest, Elo's is the second smallest, and Ilmarinen comes third. Veritas uses a very high percentage of the contributions reserved for operating costs.

Above you can see the percentage of the contributions reserved for operating costs that different pension companies use. Varma's operating costs are undoubtedly the lowest in the field. We have paid the highest client bonuses every year between 2007 and 2020. We are well-positioned to pay out excellent client bonuses also going forward because we are a solvent and by far the most efficient pension company.

How will our efficiency benefit you?

You will be rewarded for your long-standing customership with better client bonuses. Thanks to our strong solvency and efficiency we can offer competitive client bonuses to new customers, as well.

Reliable comparison of client bonuses

Varma's client bonus percentage has been consistently higher than that of Ilmarinen, Elo and Veritas since 2012. Varma's client bonus percentage is the highest, Ilmarinen's second and Elo's third highest. Veritas' client bonus percentage is the lowest.

When you compare client bonuses, it is important to know how the comparison was made and what assumptions were used in the calculation. Comparison calculations may differ considerably from each other depending on the assumptions used, such as the development of payroll or solvency. When comparing client bonuses, the average bonus level for a specific year or the average bonuses for a specific period of time can be used.

  • Measured using the average bonus level, Varma is the best payer of client bonuses again in 2020.
  • In a comparison of client bonuses over a specific period of time, Varma has paid the highest bonuses from 2007 through to 2020.

Bonuses when transferring an insurance policy

When you transfer your TyEL insurance policy to Varma, we will pay the first client bonus in spring following the year of the transfer. The bonuses are based on the insurance contributions that were paid during the preceding year and on the amount that is in the fund. That is why they are paid by the company to which the insurance contributions were paid during the preceding year.

Transfer of TyEL insurance at the start of the year

If you transfer your TyEL insurance to Varma, e.g. on 1 January 2022, we will pay the first client bonus in spring of 2023. In 2022, your previous pension insurance company will pay the client bonus, which is based on the insurance contributions from 2021.

In addition, your previous pension insurance company will pay you client bonuses based on a transferred policy for three years after the transfer. The condition for receiving the bonus based on a transferred policy is that at least EUR 50,000 in insurance contributions has accumulated in the fund by the end of the year preceding the year when the policy was transferred.

TyEL insurance transferred mid-year

If you are transferring your TyEL insurance to Varma mid-year, you will receive a client bonus for the year of the transfer from both Varma and your previous insurance company. In addition, the previous company will pay you bonuses for two years after the insurance was transferred. Your previous pension company will pay client bonuses and bonuses based on a transferred policy only if at least EUR 50,000 in insurance contributions has accumulated in the fund by the end of the year preceding the year when the policy was transferred.

Corona situation reduces client bonuses

There was a temporary reduction of 2.6 percentage points in employers' pension insurance contributions for the year 2020. The reduction was in force 1.5.–31.12.2020, and affected salaries subject to TyEL paid between May and December 2020.

Pension insurance companies cannot pay out client bonuses from the period when the reduction was in force. The client bonus that was paid out in the spring of 2021, and that reduces the insurance contribution of 2021, was therefore one third of the normal amount. The client bonus from the year 2020 reduces insurance contribution of 2021. The amount of client bonus was lower regardless of how long your insurance has been in force in 2020.

Help with using our services

Take care of your TyEL matters online

In our online service, you can, for instance

  • view your TyEL insurance invoices and invoice specifications
  • view earnings by employee
  • send us messages and attachments through a secure connection
  • calculate estimates of TyEL contributions
Log in to Varma Online Service