The administrative cost contribution collected by earnings-related pension companies is used to cover the costs arising from the administration and implementation of insurance. The level of the administrative cost contribution is determined by the pension company’s operational efficiency. The amount of the administrative cost contribution is affected by, among other things, the size of the client company.
In the summer, the Ministry of Social Affairs and Health confirmed the actuarial principles that apply to Varma’s TyEL administrative cost contribution for 2025. The final TyEL contribution percentages for 2025 will be confirmed later in the autumn.
This year, too, three out of four Finnish companies have the lowest administrative cost contributions as Varma’s customers. Starting in 2025, the administrative cost contributions of Varma’s customers will decrease even further, by as much as 20%, depending on the size of the company.
Strong solvency guarantees the best client bonuses
Besides administrative cost contributions, the total cost of TyEL insurance is affected by the client bonuses that are paid on the basis of the pension insurance company’s solvency.
Varma has a long history of being the most solvent earnings-related pension insurance company in Finland, which means that we also pay our customers the highest client bonuses. Thanks to our sustained strong solvency, we are extremely well-positioned to pay excellent client bonuses also in the coming years.