Page 6 - Seafarers_Pension_Fund_Annual_Report_2022

Annual Report of the Board

Seafarers’ Pension Fund 2022 Annual Report

Insured persons and 7,910 decide to sail under the flag of another country.
pension recipients Maritime navigation plays a key role in terms of the security of

Prs supply. In exceptional circumstances, the State of Finland only has the
10,000 possibility to take control of those vessels sailing under the Finnish
flag. It is important to ensure that different types of vessels registered
8,000 under the Finnish flag can be utilised in crisis situations. For example,
the share of passenger-car ferries transporting Finland’s daily consumer
6,000 7,086 goods (food and medicines) is 60% and imports 50%. Furthermore,
it is essential to ensure that Finland has sufficient and competent
4 ,000 national seafaring personnel to work on these vessels.

2 ,000 In addition to the assurance of security of supply, meeting Finland’s
environmental objectives also calls for significant investments in more
0 2019 2020 2021 2022 energy-efficient ships. The current cost level and price of financing
2018 make it challenging to implement new investments and require
national measures to make investing possible. This would also create
Pension recipients jobs for the maritime cluster, which is a more significant employer
Insured persons than, for example, the forest industry.

Vessels and employers 155 Seafarers’ pension system
1990–2022 33
Since the reforms in 2016, the seafarers’ pension system has been quite
No. similar to the earnings-related pension scheme in general. The general
200 earnings-related pension reforms implemented at the start of 2017
were applicable to the system governed by the Seafarers’ Pensions Act
150 (MEL) as well. For old-age pension, the lowest pensionable age rose in
2022 by three months so that the retirement age is 64 for those born
100 in 1958 and 64 and 3 months for those born in 1959. This principle
continues to apply for those born up until 1961, for whom the
50 pensionable age is 64 years and 9 months. The lowest pensionable
age for those born in 1962–1964 is 65 years.
0
Vessels Employers Within the seafarers’ pension system, it will remain possible for
1990 individuals to retire at a lower old-age pensionable age under MEL
1995 until the end of 2024.
2000
2005 The life expectancy coefficient confirmed for the year 2022 was
2010 0.94659, and accordingly, the commencing pensions for those born
2015 in 1960 were cut by approximately 5.431%.
2020
2022 The amount of the pension is adjusted at the beginning of each year
in accordance with the earnings-related pension index. The exception-
ally high inflation level during 2022 and the determination bases of
the index made it possible, already early in 2022, to predict that the
earnings-related pension index would significantly increase pensions
that were being paid on 1 January 2023 by up to 6.8%. The amount of
the index adjustment is affected 80% by changes in consumer prices
and 20% by changes in earnings levels. The record-high index increase
also received a lot of publicity in the media and encouraged many of
the insured, also those insured by the Seafarers’ Pension Fund, to apply
for old age or partial old age pension by 1 December 2022.

The role of the Seafarers’ Pension Fund as the field-specific pension
provider has remained unchanged, and its development is linked with
the development of Finnish navigation.

Towards the end of 2022, a joint pension calculation survey for
the earnings-related pension sector was launched with the aim of

6