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Finland

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Abstract:

The two‐tier pension system consists of a basic national pension, which is incometested, and a range of statutory earnings‐related schemes, with very similar rules for different groups. The modelling covers the scheme for private sector employees (TEL). The schemes for private‐sector employees are partially pre‐funded while the public‐sector schemes are pay‐as‐you‐go financed (with buffer funds to even out future increases in pension contributions). Major pension reform was introduced in Finland in 2005. The rules presented here refer to long‐term situation when all reforms are fully phased‐in.

Document Type: Review Article

Publication date: 2007-06-01

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