Automated decision-making

Ilmarinen uses automated decision-making when processing matters. Read more about what that means on this page.

Automated decision-making at Ilmarinen

At Ilmarinen, automated decision-making is based on the Administrative Procedure Act (434/2003) and the Act on Information Management in Public Administration (906/2019). According to the Administrative Procedure Act, an authority can use automated decision-making in a matter that does not involve facts requiring case-by-case consideration or which involves facts requiring case-by-case consideration that have been assessed by an official or another processor in the matter. The decision-making must be based on the processing rules drawn up on the basis of applicable law and prior consideration as referred to in the Act on Information Management in Public Administration.

Ilmarinen makes its decisions in accordance with employment pension legislation and the Administrative Procedure Act, and in the automation of decisions complies with the requirements stipulated in the Act on Information Management in Public Administration. A deployment decision is made when automated decision-making will be used to process a matter. More detailed information on automated decision-making at Ilmarinen is available in each deployment decision.

Deployment decision-specific information

  1. With this decision, Ilmarinen Mutual Pension Insurance Company has assessed the conditions for the adoption of an automatic decision procedure for confirming an entrepreneur’s YEL income when the entrepreneur applies to Ilmarinen for new insurance under the Self-employed Persons' Pensions Act (1272/2006) or when an entrepreneur applies to Ilmarinen for a change in the YEL income for their YEL insurance. 
     
    The YEL income of an entrepreneur and any change to it are regulated in sections 112 and 112a of the Self-employed Persons’ Pensions Act (YEL) and in the implementing provision of the Act amending the Self-employed Persons' Pensions Act (1157/2022).  

    Decision

    Ilmarinen Mutual Pension Insurance Company will adopt an automatic decision procedure for the confirmation of an entrepreneur's YEL income when the entrepreneur applies for a new insurance policy from Ilmarinen under the Self-employed Persons’ Pensions Act or when an entrepreneur applies for a change in YEL income in their existing YEL insurance policy with Ilmarinen. 

    Grounds for the decision

    According to Section 53e(2) of the Administrative Procedure Act (434/2003), an authority may automatically decide on a case that does not contain facts that require an ad hoc assessment or that have been assessed by an official or other person handling the case. The decision must be based on the processing rules referred to in Article 2(16) of the Act on Information Management in Public Administration (906/2019), which are based on the applicable law and on prior consideration.
     
    Ilmarinen Mutual Pension Insurance Company issues a decision on YEL income to an entrepreneur when the entrepreneur applies to Ilmarinen for new insurance under the Self-employed Persons’ Pensions Act or when the entrepreneur applies to Ilmarinen for a change in YEL income for their YEL insurance. The income is confirmed in an automatic decision procedure with pre-defined processing rules. 
     
    According to Section 109 of the Self-Employed Persons' Pensions Act, an entrepreneur is obliged to take out YEL insurance within six months of the start of their entrepreneurial activity within the meaning of the Self-Employed Persons' Pensions Act. Under Section 111(1) of the Self-employed Persons’ Pensions Act, Ilmarinen Mutual Pension Insurance Company must issue and maintain the insurance applied for. 
     
    According to Section 112a(4) of the Self-Employed Persons' Pensions Act, an entrepreneur's annual YEL income may be changed on application by the entrepreneur if the circumstances affecting their work input change substantially for other reasons. 
     
    On the basis of sections 112(1) and (2) of the Self-employed Persons Pensions Act, Ilmarinen Mutual Pension Insurance Company confirms to the entrepreneur at the start of the insurance the annual YEL income corresponding to the entrepreneur’s work input. An entrepreneur may apply for a change to their YEL income on the basis of Section 112a(4) of the Self-employed Persons’ Pensions Act, in which case Ilmarinen will confirm the new YEL income and the date it will enter into force. 
     
    The YEL income is the salary that would reasonably be payable if a person with comparable skills were to be employed to carry out their entrepreneurial activity, or the compensation that can otherwise be considered to correspond on average to the work in question. The YEL income is determined on the basis of the overall assessment. Pursuant to Section 2(1)(6) of the Act on the Finnish Centre the Pensions (397/2006), the Finnish Centre the Pensions has issued recommendations on the determination of an entrepreneur's YEL income, on changes to an entrepreneur's confirmed YEL income and on an entrepreneur's total insured YEL income. The Finnish Centre the Pensions also maintains and develops, on the basis of Section 2(1)(8) of the said act, a database for determining YEL income referred to in Section 112(2) of the Self-Employed Persons' Pensions Act in support of the recommendations referred to in Section 6. 
     
    The Finnish Centre for Pensions maintains the above-mentioned database in the sector’s calculation service (the database for determining work income). The calculation service provides the entrepreneur with a recommended YEL income which aims to reflect an estimate of the value of the entrepreneur's work input based on statistical data and a model based on application practice. For entrepreneurs with a certain level of entrepreneurial activity in a given sector, the calculation service is used to determine a recommended YEL income on the basis of uniform criteria across all pension institutions.
     
    Ilmarinen Mutual Pension Insurance Company has assessed that cases where an entrepreneur applies for confirmation of YEL income that deviates from the Finnish Centre for Pensions’ recommended YEL income by falling below the lower limit or exceeding the upper limit require a case-specific assessment.
    Therefore, no case-specific assessment is required in cases where the entrepreneur applies for confirmation of YEL income that is between the upper or lower limit of the Finnish Centre for Pensions’ recommendation for YEL income. 
     
    The decisions issued in the Ilmarinen Mutual Pension Insurance Company's automatic decision procedure are justified as required by Section 95a of the Self-employed Persons’ Pensions Act, i.e. our company's decisions on the confirmation of YEL income include the information used as the basis confirming YEL income. The entrepreneur receives instructions for appeal attached to the decision. The appeal process is free of charge and an appeal lodged by an entrepreneur is examined by a natural person i.e. an appeal by an entrepreneur or a similar claim is not automatically decided upon. The handling of appeals therefore meets the requirements of section 53e(4) of the Administrative Procedure Act (434/2003).

    List of documents on which the decision to adopt is based

    1. Documentation of the procedures and processing rules for changes in YEL income when an entrepreneur applies for new insurance under the Self-employed Persons’ Pensions Act or when an entrepreneur applies for a change in their YEL income for their YEL insurance with Ilmarinen, division of tasks related to the obligations under Section 6a of the Act on Information Management in Public Administration
    2. Conditions for adoption and applicable provisions
    3. Key quality assurance measures 
    4. Procedural guidelines for data security and data protection

    Date of adoption and date of decision

    The date of the decision is 13 May 2024
     
    The date of adoption is 12 June 2024.
     
    The automatic decision procedure was adopted before the entry into force of the Act amending the Act on Information Management in Public Administration (488/2023). 

    Information about the decision-maker

    The decision on the automatic decision procedure for decisions on changes to an entrepreneur's YEL income has been made by the leadership team of the Insurance and Pension Services department of Ilmarinen Mutual Pension Insurance Company, chaired by Tiina Nurmi, Executive Vice President, Insurance and Pension Services 

    Contact information for Ilmarinen Mutual Pension Insurance Company for more information on the use of the automatic decision procedure

    For further information, please contact Minna Hakkarainen, Director, Insurance Services, tel. +358 10 284 11 (switchboard), email minna.hakkarainen@ilmarinen.fi 

    Information

    This decision is publicly available on the Ilmarinen Mutual Pension Insurance Company website ilmarinen.fi

    Applicable provisions

    Administrative Procedure Act (434/2003) 
    Act on Information Management in Public Administration (906/2019)
    Act amending the Act on Information Management in Public Administration  (488/2023)
    Self-employed Persons’ Pensions Act (1272/2006)
    Act on the Finnish Centre for Pensions (397/2006)

     

  2. In this decision, Ilmarinen Mutual Pension Insurance Company has assessed the requirements for deploying an automated decision-making procedure for changing an entrepreneur’s YEL income.

    Ilmarinen Mutual Pension Insurance Company makes decisions concerning changing entrepreneurs’ YEL income either based on an entrepreneur’s application or due to the provisions of the Self-Employed Persons’ Pensions Act (1272/2006) and the provision on the entry into force of the act amending it (1157/2022) that Ilmarinen is obligated to comply with.

    Provisions concerning entrepreneurs’ YEL income and changing an entrepreneur’s YEL income are laid down in sections 112 and 112a of the Self-employed Persons’ Pensions Act (YEL, 1272/2006) and in the provision on the entry into force of the act amending it (1157/2022).

    Decision

    Ilmarinen Mutual Pension Insurance Company will deploy an automated decision-making procedure for changing the entrepreneur’s YEL income.

    Grounds for the decision

    According to section 53e, subsection 2, of the Administrative Procedure Act (434/2003), an authority can use automated decision-making in a matter that does not involve facts requiring case-by-case consideration or which involves facts requiring case-by-case consideration that have been assessed by an official or another processor in the matter. The decision-making must be based on the processing rules drawn up on the basis of applicable law and prior consideration as referred to in section 2, subsection 16, of the Act on Information Management in Public Administration (906/2019).

    Ilmarinen Mutual Pension Insurance Company’s automated decision-making procedure in decisions concerning changing an entrepreneur’s YEL income is based on pre-established processing rules.

    Based on Section 112, subsections 1 and 2, of the Self-employed Persons’ Pensions Act, when an entrepreneur’s insurance begins, Ilmarinen Mutual Pension Insurance Company confirms for the entrepreneur an annual YEL income that corresponds to their work contribution. YEL income is the salary that would reasonably be paid if a person with the same professional skills were hired to carry out the self-employed person’s work, or compensation that can otherwise be considered to correspond on average to such work. YEL income is confirmed on the basis of an overall assessment. When confirming YEL income, Ilmarinen Mutual Pension Insurance Company considers the median salary of full-time workers in the relevant private-sector industry as the salary and compensation referred to above, and takes into account other information describing the amount of the entrepreneur’s work contribution, the scope of the entrepreneurial activities, the entrepreneur’s professional skills and the value of the entrepreneur’s work contribution.

    By virtue of section 2, subsection 1, paragraph 6, of the Act on the Finnish Centre for Pensions, the Finnish Centre for Pensions has issued recommendations on confirming an Entrepreneur’s YEL income, changing an Entrepreneur’s confirmed YEL income and an Entrepreneur’s total YEL income. Based on section 2, subsection 1, paragraph 8, of the Act on the Finnish Centre for Pensions, the Finnish Centre for Pensions additionally maintains and develops the database required for determining the YEL income as referred to in section 112, subsection 2, of the Self-employed Persons’ Pensions Act, to support the recommendations referred to in paragraph 6.

    Based on the act governing it, the Finnish Centre for Pensions maintains the database required for determining YEL income in the industry’s calculation service (database required for determining YEL income). The calculation service gives the entrepreneur a YEL income recommendation that aims to match the estimate of the value of the entrepreneur’s work contribution based on a model created on the basis of statistical data and application practice. With the help of the YEL income recommendation calculation service, the YEL income of entrepreneurs pursuing entrepreneurial activities of a specific scale in a specific industry is defined according to uniform criteria in all pension institutions.

    Ilmarinen Mutual Pension Insurance Company has assessed that for cases in which an entrepreneur applies for confirmation of YEL income that deviates from the upper or lower limits of the Finnish Centre for Pensions’ recommended YEL income, case-by-case consideration is required. 

    Cases in which an entrepreneur seeks confirmation of YEL income that is within the upper and lower limits of the Finnish Centre for Pension’s recommended YEL income thus do not require case-by-case consideration.

    Decisions issued in Ilmarinen Mutual Pension Insurance Company’s automated decision-making procedure are justified as required by section 95a of the Self-employed Persons’ Pensions Act, meaning our company’s decisions on confirming YEL income include data used as the basis for confirming YEL income. The entrepreneur will receive Appeal Instructions (i.e. administrative review) attached to decisions. There is no cost for requesting an administrative review, and the request is examined by a natural person, meaning the entrepreneur’s request for a review or a comparable request is not resolved automatically. The consideration of administrative reviews thus fulfils the requirements of section 53e, subsection 4, of the Administrative Procedure Act (434/2003).

    List of the documents serving as the basis for the deployment decision

    1. Documentation on procedures and processing rules for YEL income changes, division of duties related to the obligations laid down in Chapter 6a of the Information Management Act
    2. Requirements for deployment and applied provisions
    3. Key quality assurance measures
    4. Procedural guidelines for information security and data protection.

    Date of deployment and date when the decision was made

    The decision was made on 9 June 2023.
    The date of deployment is 16 June 2023.

    Information on the decision-maker

    The decision on the deployment of an automated decision-making procedure concerning decisions on changing an entrepreneur’s YEL income was made by Ilmarinen Mutual Pension Insurance Company’s insurance and pension services line’s executive group, which is headed by Executive Vice President of Insurance and Pension Services Tiina Nurmi.

    Ilmarinen Mutual Pension Insurance Company’s contact details for additional information on the use of an automated decision-making procedure

    For more information, please contact Minna Hakkarainen, Director of Insurance Services, tel. 010 284 11 (switchboard) email minna.hakkarainen@ilmarinen.fi.

    Communication

    This decision is publicly available on Ilmarinen Mutual Pension Insurance Company’s website, ilmarinen.fi.

    Applied provisions

    • Administrative Procedure Act (434/2003)
    • Act on Information Management in Public Administration (906/2019)
    • Self-employed Persons’ Pensions Act (Yrittäjän eläkelaki 1272/2006)
    • Act on the Finnish Centre for Pensions (Laki Eläketurvakeskuksesta 397/2006).
  3. With this decision, Ilmarinen Mutual Pension Insurance Company has assessed the conditions for the adoption of an automatic decision procedure for deciding upon an entrepreneur’s YEL insurance 
     
    The termination of an entrepreneur's YEL insurance is provided for in Section 111(3) of the Self-employed Persons’ Pensions Act (1272/2006) and in Section 5(1) of the insurance conditions of the insurance contract under the Self-employed Persons’ Pensions Act (YEL), which are approved by the Ministry of Social Affairs and Health pursuant to Section 137 of the Self-employed Persons’ Pensions Act  

    Decision

    Ilmarinen Mutual Pension Insurance Company will adopt an automatic decision procedure for the termination of an entrepreneur's YEL insurance if the entrepreneur has notified that they have ceased their entrepreneurial activity within the meaning of the Self-employed Persons’ Pensions Act or if, according to their notification, they are no longer otherwise liable for insurance. 

    Grounds for the decision

    According to Section 53e(2) of the Administrative Procedure Act (434/2003), an authority may automatically decide on a case that does not contain facts that require an ad hoc assessment or that have been assessed by an official or other person handling the case. The decision must be based on the processing rules referred to in Article 2(16) of the Act on Information Management in Public Administration (906/2019), which are based on the applicable law and on prior consideration.
     
    Ilmarinen Mutual Pension Insurance Company will terminate an entrepreneur's YEL insurance if the entrepreneur has notified that they have ceased their entrepreneurial activity within the meaning of the Self-employed Persons’ Pensions Act or if, according to their notification, they are no longer otherwise liable for insurance. Ilmarinen will issue a decision on the termination of the insurance in an automatic decision procedure with pre-defined processing rules.  
     
    According to Section 149(1) of the Self-employed Persons' Pensions Act, an entrepreneur is obliged to inform the pension institution without delay of the commencement of their entrepreneurial activity under the Self-employed Persons' Pensions Act and of any material changes in the nature, scope or form of their entrepreneurial activity or their work input. The entrepreneur is also obliged to inform the pension institution without delay of the termination of their entrepreneurial activity within the meaning of the Self-employed Persons' Pensions Act.
     
    According to Section 111(4) of the Self-employed Persons' Pensions Act, the insurance expires if the entrepreneur's declaration or other information reveals that the entrepreneur has ceased their entrepreneurial activity within the meaning of the Self-employed Persons' Pensions Act or if they are otherwise no longer liable for insurance. The pension institution may, after receiving the declaration, terminate the insurance retroactively to the date when the conditions for insurance were no longer met.
     
    According to Section 111(1) of the Self-employed Persons' Pensions Act, if an entrepreneur is required to be insured under the Self-employed Persons' Pensions Act, the pension insurance company must issue and maintain the insurance applied for from the company.
     
    Ilmarinen Mutual Pension Insurance Company has assessed that case-specific consideration is not required in situations where the termination of YEL insurance is based on the entrepreneur's own declaration of the termination of their business activity or a declaration that they are no longer obliged to insure under the Self-employed Persons' Pensions Act 
     
    If the entrepreneur's ownership in a limited liability company no longer exceeds 30% of the voting rights or number of shares, or if they no longer own more than 50% of the share capital or voting rights of the company together with their family members, they are no longer subject to YEL insurance. A partner in a general partnership or in another kind of partnership or group who is personally liable for the obligations and commitments of the partnership or group may have renounced their shareholding. 
    An unpaid family member involved in the self-employed activity of a sole trader may have stopped working. The entrepreneur's labour input may also have become so small that they are no longer obliged to take out YEL insurance. 
     
    The entrepreneur themselves is aware of the conditions for terminating the YEL insurance as stated in the previous paragraph. 
     
    According to Section 45(2) of the Administrative Procedure Act, the reasons for a decision may be omitted if the decision accepts a claim that does not concern another party and no other party has the right to appeal against the decision. 
     
    The decisions issued by Ilmarinen Mutual Pension Insurance Company in the automatic decision procedure accept the entrepreneur's claim for termination of the YEL insurance and are justified by the entrepreneur's own declaration. 
     
    The entrepreneur receives instructions for appeal attached to the decision, the appeal process is free of charge and an appeal lodged by an entrepreneur is examined by a natural person i.e. an appeal by an entrepreneur or a similar claim is not automatically decided upon. The handling of appeals therefore meets the requirements of section 53e(4) of the Administrative Procedure Act (434/2003).

    List of documents on which the decision to adopt is based

    1. Documentation of the procedures and processing rules for the termination of YEL insurance, division of tasks related to the obligations under Chapter 6a of the Act on Information Management in Public Administration.
    2. Conditions for adoption and applicable provisions
    3. Key quality assurance measures 
    4. Procedural guidelines for data security and data protection

    Date of adoption and date of decision

    The date of the decision is 13 May 2024
     
    The date of adoption is 12 June 2024.
     
    The automatic decision procedure was adopted before the entry into force of the Act amending the Act on Information Management in Public Administration (488/2023). 

    Information about the decision-maker

    The decision on the automatic decision procedure for decisions on terminating insurance has been made by the leadership team of the Insurance and Pension Services department of Ilmarinen Mutual Pension Insurance Company, chaired by Tiina Nurmi, Executive Vice President, Insurance and Pension Services 

    Contact information for Ilmarinen Mutual Pension Insurance Company for more information on the use of the automatic decision procedure

    For further information, please contact Minna Hakkarainen, Director, Insurance Services, tel. +358 10 284 11 (switchboard), email minna.hakkarainen@ilmarinen.fi 

    Information

    This decision is publicly available on the Ilmarinen Mutual Pension Insurance Company website ilmarinen.fi

    Applicable provisions

    Administrative Procedure Act (434/2003) 
    Act on Information Management in Public Administration (906/2019)
    Act amending the Act on Information Management in Public Administration (488/2023)
    Self-employed Persons’ Pensions Act (1272/2006)