2020 tax rate for pension recipients to be applied as of 1 February
From the beginning of February, we will withhold tax from pensions according to the 2020 tax rate reported by the Finnish Tax Administration. As a result of this, the amount of pension paid into your account may change from the beginning of February. You can check the amount of pension that will be paid to you in February using your Finnish online banking codes or a mobile certificate on Varma’s eServices.
Would you like to raise the tax rate on your pension?
If you would like to pay a higher withholding tax rate than what the tax authorities have informed you of, you can raise your tax rate on our eServices. If you raise your tax rate by the 26 January 2020, we will be able to use the higher tax rate as the withholding rate for your pension as of February. If you wish, you can also inform our pension payments department of the higher tax rate by phone or online via the “Messages and attachments” service.
Go to your personal pension details on our eServices
Mailing of annual letter to pension recipients has begun in the middle of December
Varma’s pension recipients will receive a personal letter in December or January stating the amount of their index-adjusted pension and withholding tax as of 1 January 2020. The letter will also state the total amount of the pensions that have been paid and the tax that has been withheld in 2019, as well as the pension payment dates for 2020. We will mail letters to approximately 340,000 pension recipients. The letters mailed at the turn of the year to pension recipients living in Finland will also be visible in the electronic archive of our eServices.
The adjusted earnings-related pension index will increase current pensions by approximately 1.2% at the start of 2020.
Residence report for pensioners living abroad
Every year along with the annual letter, Varma sends a residence report to be completed by our pensioners who live permanently outside of Finland. The report should be completed, signed and returned to us as soon as possible to ensure that the payment of pension is not interrupted.
The residence report must be returned to us, even if the pensioner’s circumstances have not changed from the previous year. The residence report can be confirmed on our eServices. This will speed up the handling of the residence report. Varma's eServices are available for pensioners living abroad, provided that they have personal Finnish banking codes or a mobile certificate required for logging in to our service.
Earnings-related pensions will rise by approximately 1.2 per cent at the beginning of 2020
The Ministry of Social Affairs and Health has confirmed the indexes for earnings-related pension provision for the year 2020.
The earnings-related pension index in 2020 will be 2617. Compared to 2019, the earnings-related pension index will rise by approximately 1.2 per cent. The earnings-related pension index is used to adjust earnings-related pensions in payment. When calculating the earnings-related pension index, the changes in price level weigh 80 per cent and the changes in wage-earners’ income level 20 per cent.
Varma’s electronic employee pension card to be renewed at the end of August
Our electronic employee pension card is now easier to use than before. With the implementation of new technology, the electronic card can now be used without an internet connection. The card is saved to the home screen of a mobile phone or tablet and opens from the icon without signing in. Saving the card works best with Android and iPhone phones and tablets. The electronic card functions as proof of being retired in just the same way as a traditional card sent by post. Therefore, in order to get pensioner discounts, you no longer need to carry with you a separate plastic card once the card is saved on your phone or tablet.
We recommend visiting our eServices to save the new version of the electronic employee pension card as soon as possible, especially if you are already using an electronic card saved before the end of August. The old employee pension card icon will be taken out of use at the beginning of November 2019. After that, the employee pension card can no longer be opened with the old icon. Saving the card is as handy as before. Clear instructions for saving the card can be found on the employee pension card page of our eService. The page is visible to those recipients of a pension who have the right to an employee pension card.