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How has the recent pension reform reduced the number of legal provisions?

Ministry of Social Affairs and Health 26.2.2016 12.23
News item

Deregulation is one of the key projects of the Government. The aim of the deregulation project is to make everyday life of people and businesses easier by lighter and reformed regulation. This supports Finland's growth, strengthens its competitiveness and promotes digitalisation.

The pension reform is one example of deregulation. In connection with the reform, 228 sections were abolished from legislation. Director Heli Backman from the Ministry's Pension Insurance Unit says in a video interview, among other things, that the pension reform has reduced the number of legal provisions and it makes authorities' work easier. She also explains how this benefits citizens.

Link to video interview (in Finnish):

Text version of the interview

What does a pension reform mean?

Heli Backman says that the pension reform will become effective in the beginning of 2017. It changes the content of the pension legislation rather significantly. The aim is to extend Finns' working careers and to bridge the sustainability gap in the public finances. In this connection, the minimum age for retiring on old-age pension will rise gradually and the rules for pension accrual will be changed. At the same time, new pension forms will be taken into use.

How has the pension reform reduced the number of legal provisions?

According to Heli Backman, in Finland we have had different pension acts for people working for different sectors.  In the pension reform, we decided to combine the Local Government Pensions Act, State Employees' Pensions Act and Evangelical-Lutheran Church Pensions Act into a new pension act for the public sector. That way we were able to abolish 228 sections from the pension legislation.

How will the reduced number of pension acts make the work easier for authorities?

Heli Backman says that deregulation benefits especially those who implement the pension system. It is much easier to apply one act than three acts. And if this legislation will be amended later, the legislative process will be lighter because there's only one act to be amended.

How does this benefit citizens?

Heli Backman explains that reducing the number of legal provisions does not change the level of pension security in any way. Citizens very seldom search for information directly from a pension act, they rather follow the information given by implementors. However, if anyone wants to check their pension rights directly from legislation, it is easier now.



Interview and video: Kimmo Vainikainen