Unit-linked pension fund
Employers can supplement their employees’ statutory pension plans by means of a voluntary unit-linked pension insurance.

Statutory occupational pension provides employees with a good basic level of security. The longer you work and postpone retirement, the higher the pension you receive. Similarly, the more you earn or the higher your income as a self-employed person is, the higher your pension will be.
As your occupational pension is based on all your earnings during your working life in paid employment and as a self-employed person, the amount of your occupational pension may be lower than you would wish compared to your last salary before retirement.
Group pension insurance taken out by your employer can compensate for this reduction in income.
A unit-linked group pension is a great employee benefit that adds value in, for example, recruitment situations:
- Group pension contribution is deductible for the company and, unlike individual pension insurance, there is no maximum contribution limit as long as the supplementary pension cover is at a reasonable level from the taxpayer’s point of view.
- Contributions to a group pension insurance scheme are not considered income for the insured persons. The employer is not required to withhold tax or pay social security contributions on them. During retirement, the supplementary pension is taxed as earned income of the pensioner.
- A great way to build commitment. The longer the employee works for the company, the higher the voluntary pension is.
- A flexible solution. Group pension insurance is a contribution-based scheme, so the company can optimise the payment of contributions according to, for example, annual performance, with no surprises for the employer’s finances.
- Unlike defined benefit group pension insurance, unit-linked group pension insurance does not require an IFRS or US GAAP liability calculation.
Voluntary group pension insurance can be managed through a pension fund, a pension foundation or a life insurance company. If well managed, a unit-linked supplementary pension cover through a pension foundation or a pension fund is a less expensive option compared to a life insurance company.
• In a pension foundation or a pension fund, the operating profit reserved for the owners of the life insurance company benefits the insured.
• A pension foundation or a pension fund does not have to maintain an expensive sales network or advertise their services; instead, the savings are passed on to the insured.
• A pension foundation or a pension fund does not need cumbersome administration and can choose to outsource the services they need to Porasto and the board focused on financial management. The board of managers and its responsibilities are the only functions that cannot be outsourced. In addition to our own activities, we have the role of the managing director in several supplementary pension funds.
• There is no commitment to a single life insurance company, which may be difficult to get out of as the policy usually does not have free repurchase right or can be priced unprofitable for the policyholder.
• In your own pension foundation or pension fund, you have the freedom to decide for yourself where and how to invest your assets. If a fund manager is not doing his or her job well enough, he or she can be replaced.
• Employers and employees can appoint their own representatives to the board of the pension fund.