Automated decision-making

Automated decision-making and implementing the requirements of legislation

Legislation on automated decision-making took effect in 2023. The legislation allows automated decision-making on administrative matters in so far as making a decision on the matter in question does not require case-specific consideration or when the processor of the matter has assessed the factors requiring case-specific consideration.

Automated decision-making at Varma

Varma uses the automated decision-making procedure to issues decisions on old-age pension applications and applications for partial old-age pension that comply with the Employees Pensions Act (TyEL) and the Self-employed Persons Pensions Act (YEL), and on YEL-compliant insurance matters. The conditions applied in the automated decision-making procedure are based on law. According to Varma’s assessment, the decisions issued through the automated decision-making procedure do not require case-specific consideration.

Additionally, a condition for automated decision-making is that the applicant can, in all respects, demand a rectification of the decision. Appeal Instructions are attached to the decision. Decisions issued through the automated procedure will mention that the decision was made by means of automation. In addition, the decision includes a web address that explains Varma’s automated decision-making process.

The provision on entry into force of the act on the amendment of the Act on Information Management in Public Administration (488/2023) includes an 18-month transition period that applies to such automated decision-making processes that were in use upon the law’s entry into force on 1 May 2023. Varma will publish the information (adoption decisions) required by the law on automated decision-making procedures that have been adopted before 1 May 2023 during the transition period.