CLIENT BONUS REDUCES THE TYEL CONTRIBUTION

Every year, a certain amount, which has been transferred into bonuses in the financial statement of the previous year, will be returned as customer bonuses, which will be distributed among the TyEL customers.

The pension fund accumulated from paid contributions and contributions paid during the year in question affect the client bonuses. One half of the sum will be distributed for the insurance in proportion to their funds, and the other half in proportion to the advance contributions made during the year in question. About one-quarter of the pension insurance contributions paid by the company will be funded for future pensions.

In 2012, the average bonus is estimated to be 0.3% of salary. The level of customer bonuses varies among the pension insurance companies; it depends on the company’s amount of solvency capital, solvency, and loading profit. 

The bonuses will be returned annually to all insurances as reductions in TyEL contributions. Until the annual calculation, an estimated bonus is used, and the final bonus amount will be calculated as the financial statement is completed. The final bonus amount is used when the advance contributions of the current year are again calculated in connection with the annual calculation.