The other national labour and employer confederations have also approved the settlement, with the exception of the Confederation of Unions for Professional and Managerial Staff in Finland (Akava), but the decision of this organisation to withhold its support will not obstruct the reform.
The new pension system will take effect in 2017 with a phased increase in the normal minimum retiring age to 65 years. Employees who have spent many years in physically or mentally demanding work will nevertheless be able to retire at 63 years. A facility enabling part-time retirement before reaching the minimum age will also continue.
SAK also believes that pensions will become more equitable when future pension eligibility accrues more steadily throughout the working career.
“Protecting the future pensions of the present younger generation was a key objective for SAK. We were also equally concerned to ensure a respectable retirement path for older employees,” SAK President Lauri Lyly stressed after the meeting of the Executive Board.
The national labour and employer confederations have been negotiating the pension reform with Finnish government representatives since the start of the year. The final decision to implement the settlement will be taken by the incoming Parliament following elections in 2015.
Minimum retiring age rises to 65 years
Pension will accrue at a rate of 1.5 per cent of pay
Employees in demanding work will be able to retire at a younger age on career pension
Partial early retirement will be possible before reaching the minimum age
Unemployed workers approaching retirement age will be eligible for an extended period of earnings-related unemployment benefit
Improved quality of life at work
The impact of the pension system will be monitored regularly