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replacing, in the long term, the technology of the current pension Annual Report of the Board
calculation system and, where possible, also the calculation. As con-
cerns the calculation of seafarers’ pensions, it is important to ensure Seafarers’ Pension Fund 2022 Annual Report
that the new calculation system also serves the calculation needs
of MEL pensions. The Seafarers’ Pension Fund joined the common 77
earnings-related calculation system utilised in the pension industry at
the start of 2022 as part of the Fund’s own pension system reform.

The survivors’ pension reform entered into force at the beginning of
2022. This reform brought changes to both the spouse’s and orphan’s
pensions.

Result and solvency

The overall result of the Seafarers’ Pension Fund for the year 2022 was
positive at EUR 19.2 million. The result is comprised of the result of
the insurance business, the result of investment activities, government
shares and administrative expenses.

For the Seafarers’ Pension Fund, the return on investments was
-1.7% and the real return -10.8%. The net investment income at
current values totalled EUR -23.2 million.

The Fund’s solvency ratio was 190.1 at the end of the year, as com-
pared to 194.4% in 2021. The Fund’s solvency is still strong and one
of the best in the field. The solvency capital was 3.4 times the solvency
limit. In euro, the solvency capital decreased by EUR 37.7 million from
the preceding year and totalled EUR 650.1 euro at the end of 2022.

Premium income and government share

A total of 33 shipping companies were insured by the Seafarers’ Pension
Fund as employers; the number increased by 1 from the preceding
year. Insurance contributions were paid for altogether 155 vessels, as
compared to 156 vessels in 2021.

The number of insured employees totalled 7086 persons (5709 in
2021). The number of the insured returned to normal levels following
the pandemic crisis.

The payroll increased by 24.3% from the previous year. In 2022,
the payroll for navigation totalled EUR 261.5 million. Accordingly, the
MEL insurance contributions paid by employers amounted to EUR 29.8
million and those paid by employees to EUR 19.9 million. Thus, the
premium income of the Fund totalled EUR 49.7 million. The premium
income increased by EUR 9.7 million (24.3%) from the preceding year.

The MEL insurance contributions for seafarers, i.e. employees, are
at the same level as the contributions payable under the Employees
Pensions Act (TyEL). The contribution percentage for shipping compa-
nies as employers is determined by the Ministry of Social Affairs and
Health, upon the proposal of the Board of the Seafarers’ Pension Fund.
The insurance contribution for 2022 was 11.4%, as it was the previous
year as well.

In 2022, the percentages of MEL contributions paid by seafarers were
7.15% for employees under 53 years and over 62 years, and 8.65% for
those aged 53–62 years.