The administrative cost contribution collected by the earnings-related pension companies covers the costs arising from the administration and implementation of insurance policies. The level of the administrative cost contribution is determined according to the efficiency of the earnings-related pension company's operations. For individual companies, especially the size of the company affects the amount of the administration cost contribution. A low administration cost contribution combined with the best client bonuses in the industry enables Varma's clients to enjoy an overall affordable TyEL insurance.
The Ministry of Social Affairs and Health confirmed Varma's actuarial principle for the TyEL administrative cost contribution for 2026 in June. The other final components of the TyEL contribution for 2026 will be confirmed later in the fall.
Solvency guarantees Varma's customers the best client bonuses
Even more significantly than the administrative cost contributions, the overall costs of customers' TyEL insurance are affected by the client bonuses paid according to the solvency of the earnings-related pension insurance company. Thanks to our record-high solvency, we paid our customers by far the best client bonuses in the industry this year.
Varma has long been the most solvent of the earnings-related pension companies, which means higher client bonuses and thus lower earnings-related pension contributions for our clients. Thanks to our strong solvency, we are well positioned to pay excellent client bonuses in the years to come as well.