Varma

Varma secures pensions

Varma's core function is to secure pensions. Our operations are based on work carried out in Finland and on securing the sustainability of the earnings-related pension system. We take care of the statutory earnings-related pension cover of private sector employees and self-employed persons. We invest the assets collected as pension contributions profitably and securely for present and future pensions. Varma is a sought-after and competent partner in workability management. Our goal is that the employees of our client companies are able to cope better and remain in working life longer. We also aim for the lowest pension costs in the sector for our customers.

Earnings-related pension is accrued on all gainful employment

Earnings-related pension is accrued through all work and self-employment. Pension is based on income earned as an employee or self-employed person, and its purpose is to secure a reasonable standard of living after retirement. Earnings-related pension in the private sector is an essential part of the Finnish statutory social security system.

Earnings-related pensions are financed through pension contributions paid by employers and employees and through returns on investment activities. Successful investment activities can help reduce the pressure to increase pension contributions due to, for instance, the aging of the population.

Varma takes care of the statutory earnings-related pension cover of private sector employees and self-employed persons efficiently and competitively. Approximately 67,000 companies and entrepreneurs have entrusted Varma with handling their pension coverage. We consider this an acknowledgement of our strong competence in insurance matters.

A pension decision is of great significance to the future of the recipient. Earnings-related pension is a statutory social security benefit, which is why we closely monitor the accuracy of our decisions and the speed of our services. New pensions are paid as quickly as possible to ensure that there is no interruption to our customers’ income. We provide reliable and useful information about pension insurance.

Good workability helps to extend careers

Finland needs domestic work, successful and competitive companies and longer careers – they help to secure the funding of future earnings-related pensions. Our services in workability management and rehabilitation help client companies to save in pension and sick-leave costs. Employees’ good workability and well-being support the target of extending their careers.

Statutory vocational rehabilitation gives employees and entrepreneurs the opportunity to continue in working life when their capacity to work is threatened. We ensure the effectiveness of rehabilitation through seamless co-operation with the employee, employer and occupational health care.

We invest pension assets profitably and securely

With EUR 37.7 (34.4) billion in investment assets, Varma is Finland’s largest private investor. Responsibility for pensions extends well into the future, and, through a controlled risk profile, we strive for the best possible return on investments in order to secure the payment of pensions. We safeguard our solvency in order to ensure that pension liabilities are covered at all times.

We accumulate pension assets in order to cover current and future pensions. The earnings-related pension system is based on a defined benefit scheme and creates security and stability in uncertain economic situations. Earnings-related pensions and the assets that are funded for them are well secured in the Finnish pension scheme even during periods of economic turmoil.

Varma’s goal is to maintain strong solvency under all circumstances. We succeeded well in achieving this key goal: Varma’s solvency strengthened clearly and is at the strongest level ever. At the end of 2013, Varma’s solvency capital was EUR 9,140 million (7,716), or 31.6 (28.0) per cent of the technical provisions. Strong solvency upholds confidence in pension provision and, along with better investment returns, mitigates the most severe pressure to increase pension contributions.