Ilmarinen’s administrative cost will decrease 20% in 2024 – As our customer, you benefit right away!
At the start of next year, Ilmarinen’s administrative cost will decrease by roughly 20 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution will decrease.
The price of earnings-related pension insurance is influenced by the sector’s common TyEL contribution as well as, among other things, company-specific contribution components. These consist of the administrative cost, which affects the monthly earnings-related pension contribution, and the client bonus, which is returned to customers annually.
The total contribution level for 2024 is not yet known. The Ministry of Social Affairs and Health will confirm the basic TyEL contribution in mid-November. We will provide news and information about next year’s contributions once they have been confirmed.
As Ilmarinen’s customer, you will continue to benefit from our efficiency and solvency – part of our good result belongs to our customers, i.e. our owners.
Read about how the TyEL contribution is determined
You can see an estimate of your insurance contribution rate in our online service.
What is the administrative cost?
As of the start of 2023, the administrative cost has been determined on a company-specific basis. The administrative cost is the part of the pension contribution that is used to cover a pension company’s operating costs. It has a rather modest impact on the earnings-related pension contribution. For Ilmarinen’s customers in 2024, it will be no more than 0.20 per cent of the payroll.
Previously, any surplus administrative costs were returned to customers the following year as part of client bonuses. In future, since each pension insurance company will collect only the required amount of administrative costs, no systematic surplus will arise. Therefore, in 2024, client bonuses will be determined solely on the basis of solvency capital and will decrease in all pension insurance companies correspondingly.
Read more about the administrative cost
And what about solvency capital?
One per cent of a pension company’s solvency capital is credited to customers. Client bonuses have accrued under the new model since 2023 and will be credited to customers’ pension contributions in 2024.
Ilmarinen’s strong solvency is the result of long-term investment operations and good investment returns. Ilmarinen’s investment returns increased to 3.7 per cent in the first half of the year. The company’s solvency strengthened and cost-effectiveness continued to improve despite the high inflation and uncertain economic development.
Read more in our interim report
Read also
Earnings-related pension contributions and discounts
Large employer’s TyEL contribution
Current topics
Employer, self-employed person, pensioner – 2025 earnings-related pension index and wage coefficient confirmed
The Ministry for Social Affairs and Health has confirmed the indices for earnings-related pension insurance for 2025. Next year, the earnings-related pension index is 3077, which means an approximately 1.3 per cent increase on pensions at the start of the year. The confirmed wage coefficient is 1.673. Compared to 2024, the wage coefficient will rise some 2.2 per cent.
Ilmarinen's return on investment rose to 7.4 per cent, solvency strengthened and cost efficiency improved
Ilmarinen's return on investment in the period January–September was 7.4 per cent, or EUR 4.4 billion. Investment assets rose to EUR 62.9 billion and solvency capital to EUR 14 billion. Cost effectiveness continued to improve and is reflected in lower premiums for customers.
Ilmarinen’s administrative cost will decrease in 2025
At the start of next year, Ilmarinen’s customers’ administrative cost will decrease by roughly 10 per cent. The administrative cost is part of the TyEL insurance contribution, and in that respect, your TyEL contribution as our customer will decrease.