Occupational transitions taking place over the course of your career can have an effect on your pension. Such events include unemployment, diminished work ability, or change in employer upon transfer of undertaking.
Retiring on old-age pension or switching to partial early old-age pension may be viable options as you grow older. Vocational rehabilitation may be the right choice if your work ability has diminished.
When faced with unemployment
Losing your job usually means that you will start to receive unemployment benefits. Please consult your unemployment fund or Kela for more information.
If you are at risk of losing your job or have already been made redundant, Keva can serve you by determining your pension options, providing general advice and telling you how your unemployment will affect the amount of your pension.
Pension also accrues for unpaid periods such as job alternation leave or caring for a child under the age of 3.
- Learn more about the accrual of pension for unpaid periods
Additional days of unemployment benefits
If you have been paid unemployment benefits, you may wish to consider applying for earnings-related pension at the age of 62. This is conditional upon the so-called right to additional days having arisen after the 500 days of benefits. The right to additional days means that you will be given additional days on unemployment benefits until such time that you retire on old-age pension.
An alternative to pension is to continue with additional days of unemployment benefits up until the age of 65.
Supplementary pension and transfer of undertaking
Supplementary pension may consist of an individual or group pension insurance taken out voluntarily by the employer. In order for supplementary pension to be paid, the employment must usually remain in effect up to retirement.
Transfer of undertaking is the term for a situation where a company or a part of it is transferred to another employer. Transfers of undertaking are commonplace in the local government sector in particular when services are put out to tender by municipalities or joint municipal authorities.
When the service contract is awarded to a new provider, the employer changes but as a rule, the employees can remain employed ‘with existing benefits’. This means that the new employer also assumes responsibility for benefits such as supplementary pension as part of the transfer of undertaking.
When you transfer into the employ of a new employer ’with existing benefits,’ your employment is deemed to have continued without interruption and you retain the right to supplemental pension coverage but only if your new employer is also subject to the Public Sector Pensions Act.
- Learn more about supplementary pension: Voluntary supplementary pensions (Työeläke.fi)