THE DISABILITY CONTRIBUTION OF LARGE BUSINESSES

The disability contribution of large businesses is determined based on the contribution categories. Each year and in advance, a company’s contribution category is determined based on the number of disability pensions granted to the company’s employees in previous years.

In 2012, the contribution is affected by the disability pensions and partial disability pensions granted to the company’s employees in 2009 and 2010. Rehabilitation benefits, i.e., temporary disability pensions, do not affect the contribution category.

There are 11 contribution categories for disability risks of different sizes. The contribution in base category 4 is equivalent to the average disability expenditure. The company’s contribution category and contribution are lower when fewer of its employees have retired due to disability.

The larger the company is, the more important its contribution category is. When the company’s payroll in 2010 is between 1,846,500 and 29,544,000 euro its own contribution category affects the payment only partly. The disability contribution for larger companies will be paid only according to the contribution category.

Determining the contribution category

A risk ratio representing the company’s disability risk in relation to the average risk is calculated for the company each year based on pensions granted. A two-year risk ratio average is used to determine the contribution category of a company. Using a two-year average smoothes out fluctuations in the contributions.

The risk ratio equals one if there is more than the average amount of disability pension cases in the company. If the pension expenditure is less than the average, the risk ratio is less than one.

Contribution categories and disability percentages in 2012