Page 8 - Seafarers---_Pension_Fund_Annual_Report_2021

Annual Report of the Board

Seafarers’ Pension Fund 2021 Annual Report

Technical provisions same level as the contributions payable under the Employees Pensions
Act (TyEL). The contribution percentage for shipping companies as
MEUR 972 992 1,056.6 employers is determined by the Ministry of Social Affairs and Health,
1,000 upon the proposal of the Seafarers’ Pension Fund. The insurance
866 897 contribution for 2021 was 11.4%, as it was the previous year as well.
900
In 2021, the percentages for MEL contributions paid by seafarers
800 were 7.15% for employees under 53 years and over 62 years, and 8.65%
for those aged 53–62 years.
700
The following table shows the development of the contributions
600 payable by employers.

500

400

300

200 Year 2016 2017 2018 2019 2020 2021 2022

100 Shipowner
employer’s MEL
0 contribution, % 16.70 15.40 13.20 12.80 11.40 11.40 11.40
2017 2018 2019 2020 2021

Solvency capital and its limits In 2021, the government share decreased to 29% of the pension
expenditure instead of 31%, as seen earlier. In 2021, the State provided
Solvency capital, MEUR EUR 57.1 million for the payment of MEL pensions.

800 3.23 220 The Fund met with shipping companies at shipping company events
687.7 that were arranged primarily as virtual events. The events focused on
introductions to the activities of the shipping companies and provided
600 194.4 200 the Fund with an opportunity to tell about our activities and services as
well as to discuss information concerning the insuring process.

Pensions

400 180 In 2021, a total of 562 decisions were issued concerning a pension
or benefit or amendments thereto. The number of decisions reduced
213.2 notably from the preceding year. The reduction was still caused by
200 160 the COVID-19 situation and the resulting decline in the number of
pension applications for all pension and benefit categories other than
survivors’ pensions.

0 140 2020 2021 Change
2017 2018 2019 2020 2021
262 194 -68
Solvency ratio, % Old-age pensions + early/
partial old-age pensions 42 35 -7
Solvency capital Rehabilitation benefit 50
Solvency limit + disability pensions 82
Solvency ratio Rehabilitation/allowance/ 76 -32
Solvency position increment 91 15
Survivors’ pensions 113 88
Surviving spouse’s 16
continuing pensions 52 -25
Funeral grants 97 2 -14
Other decisions 740 41 -11
Rejections 61 -36
Total 562 -178

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