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Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) - Finland (RATIFICATION: 1976)

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In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 121 (employment injury benefits), 128 (invalidity, old-age, and survivors’ benefits), 130 (medical care and sickness benefits), and 168 (employment promotion and protection against unemployment) together.

The Committee notes the observations of the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Professionals (STTK), and the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA), communicated with the Government’s reports on the above-mentioned Conventions.

Article 7(1) of Convention No. 121. Definition of industrial accident. The Committee takes note of the Government’s indication that the Occupational Accidents, Injuries and Diseases Act adopted in 2015 (Act No. 459/2015) has not changed the principle of causality between a disease and a work-related injury necessary for entitlement to employment injury benefits. The Government further indicates that the compensation praxis in cases of employment injuries has been unified to avoid any inconsistency in the application of the national legislation that existed before the adoption of Act No. 459/2015.

Article 8of Convention No. 121. Occupational diseases. (i)Procedure for the recognition of the occupational origin of diseases. The Committee takes note of the Government’s indication that the recognition of the occupational origin of diseases which are not on the national list of occupational diseases may require an additional examination by the Finnish Institute of Occupational Health. The Government further indicates that insurance companies bear all necessary medical expenses in this respect. The average duration of an additional examination is about 6-8 months. According to the statistical data for 2020, the occupational origin of diseases was recognized in 934 out of 2520 cases. The Committee takes due note of this information.

(ii) Diseases caused by occupational exposure to moisture and asbestos. The Committee notes the observations of the SAK, the AKAVA and the STTK pointing out the lack of income protection for workers suffering from symptoms caused by moisture damage in the workplace since many of these workers fail to qualify for social security benefits. The SAK, the AKAVA and the STTK indicate in this respect that the national legislation should be more precise regarding the obligations of insurance companies to provide compensation due to diseases caused by moisture damage. The SAK, the AKAVA and the STTK also indicate that insufficient measures have been taken to ensure screening, monitoring and appropriate treatment of workers exposed to asbestos at the workplace. The Committee requests the Government to provide information on the measures taken to ensure the provision of employment injury benefits due to diseases caused by occupational exposure to moisture damage. With respect to the measures to be taken for the prevention and protection of workers against health hazards due to occupational exposure to asbestos, the Committee refers to its detailed comments under the Asbestos Convention, 1986 (No. 162).

Article 15(3) of Convention No. 128, in conjunction with Articles 17 and 18.Early retirement for workers in arduous and unhealthy occupations. The Committee notes that according to section 11 of the Employees Pensions Act (Act No. 395/2006), the retirement age for persons born between 1962 and 1964 has increased to 65 years old. The retirement age for persons born in 1965 and thereafter will be linked to life expectancy. The Committee further notes that according to sections 15 and 16 of Act No. 395/2006, a partial early retirement pension can be provided to persons born in 1964 at the age of 62 and to persons born in 1965 and thereafter at the age adjusted to life expectancy. In addition, as per section 53a of Act No. 395/2006, persons are entitled to a career pension at the age of 63 if they have been in hazardous work for at least 38 years and if their working capacity has been impaired because of an illness or disability.

The Committee recalls that according to Article 15(3) of the Convention, if the pensionable age is 65 years or higher, the age shall be lowered, under prescribed conditions, in respect of persons who have been engaged in occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy. The Committee further recalls that the purpose of this provision is intended to ensure additional protection, through a more favourable system, to persons employed on arduous or unhealthy work, by allowing them to draw an anticipated old-age pension, of which the rate and qualifying period must conform to Articles 17 (old-age pension’s rate) and 18 (minimum qualifying period) of the Convention. In this respect, the Committee observes that the qualifying period of 38 years for the entitlement to the career pension under section 53a of Act No. 395/2006 exceeds a 30-year period of contributions or employment, which is the standard qualifying period for the entitlement to an old-age pension at the minimum level required by the Convention (Article 18). The Committee further observes that a partial early retirement pension is subject to a certain reduction which may result in the amount lower than old-age pension’s rate of 45 per cent of the reference wage required, according to Articles 17 and 26 of the Convention. The Committee therefore requests the Government to indicate other possibilities for workers in arduous and unhealthy occupations to draw a pension which meets the requirements of Articles 17 and 18 of the Convention at an age lower than 65.

Article 35(1) of Convention No. 128. General responsibility of a State for the due provision of invalidity, old-age, and survivors’ benefits. The Committee notes the observations of the SAK, the AKAVA and the STTK raising concerns about the sustainability of the pension system financed through employers’ and employees’ contributions. In particular, the SAK, the AKAVA and the STTK indicate the increased use of various contractual arrangements instead of labour contracts while the individuals concerned may be de facto in subordinate and dependent relationships with their employers. The SAK, the AKAVA and the STTK further point out that employers do not have to pay social security contributions for persons not employed under labour contracts which may affect not only the financial sustainability of the pension system but also result in lower pension levels.

In this respect, the Committee notes the Government’s indication regarding the proposal of a working group of the Ministry of Social Affairs and Health to amend the Self-Employed Persons’ Pensions Act with a view to improve pension security of the self-employed. The Committee welcomes this development and requests the Government to keep it informed on the outcome of this process.The Committee also requests the Government to continue to provide information on the measures taken or envisaged to ensure the sustainability of the pension system, in application of Article 35(1) of the Convention,

Article 13(c) of Convention No. 130, in conjunction with Article 17. Cost-sharing for pharmaceutical supplies. Further to its previous request on the reimbursement of costs for pharmaceutical supplies, the Committee notes the Government’s indication that the changes in the reimbursement rules made in 2016 aimed to ensure access to pharmaceuticals for persons who heavily depend on them and persons with low income. In this respect, for example, the basic reimbursement of costs for pharmaceuticals increased from 35 to 40 per cent. In addition, there was a decrease in the annual ceiling and only after reaching this ceiling of €579.7 is a fixed co-payment of £2.5 per each medicine required. The Committee also notes the Government’s indication that the Ministry of Social Affairs and Health has launched a comprehensive reform of pharmacotherapy, which will also involve reviewing the medicine reimbursement rules.

The Committee notes from the 2021 publication of the World Health Organization “Can people afford to pay for health care? New evidence on financial protection in Finland” that medicines account for the largest share of “catastrophic spending”, particularly in the poorer quintiles, and that people with chronic conditions are more sensitive to co-payments. Furthermore, not all people in vulnerable situations have effective access in practice to social assistance benefits provided to cover out-of-pocket payments for outpatient prescribed medicines. The Committee recalls that according to Article 17 of the Convention, cost-sharing for medical care benefits, including the necessary pharmaceutical supplies, shall be so designed as to avoid hardship and not to prejudice the effectiveness of medical and social protection. The Committee therefore requests the Government to provide information on the measures taken or envisaged to ensure effective access topharmaceutical supplies for persons protected, particularly those with low income and those who suffer from diseases recognized as entailing prolonged care, without financial hardship. In this respect, the Committee encourages the Government to take advantage of the pharmacotherapy reform to ensure that the medicine reimbursement rules are so designed as to avoid hardship and not to prejudice the effectiveness of medical and social protection, in line with Article 17 of the Convention.

Article 30(1)of Convention No. 130. General responsibility of a State for the due provision of medical care benefits. The Committee notes the Government’s indication that according to the Health Care Act, medical treatment in non-urgent cases shall be provided within a reasonable time not exceeding three months for primary medical care and six months for specialized medical care, including oral health care, since the assessment of patients’ needs. The Government further indicates that in 2021, there were no cases in which waiting times went beyond a maximum of three months and approximately 60 per cent of patients received primary medical care within one week since the assessment of patients’ needs. Only 6.8 per cent of patients were waiting for treatment longer than the statutory six-month maximum period for specialized medical care at the end of December 2021.

Furthermore, the Committee notes with interest that the Ministry of Social Affairs and Health submitted a draft law amending the Health Care Act to the Parliament on 12 May 2022 which ensures the provision of medical care within seven days from the assessment of patients’ needs for outpatient medical care and within three months for oral health care. The Government also indicates the allocation of more than €200 million to regional development projects seeking to improve access to medical care. The Committee requests the Government to continue providing information on the measures taken to ensure the due provision of medical care benefits to persons protected, in line with Article 30(1) of the Convention.

Articles 7 and 8 of Convention No. 168. Promotion of productive employment. With respect to the measures taken or envisaged topromote full, productive and freely chosen employment, including among disadvantaged persons, the Committee refers to its detailed comments under the Employment Policy Convention, 1964 (No. 122).

Article 21of Convention No. 168. Suitable employment. The Committee notes the Government’s indication that a jobseeker’s employment plan is elaborated after a jobseeker’s initial interview with the Employment and Economic Development Office (TE office). The jobseeker’s employment plan takes into account the jobseeker’s competence and professional skills, work ability, duration of unemployment as well as labour market situation. The Government also indicates that a jobseeker shall usually apply for four jobs each month in line with his/her employment plan to continue receiving unemployment benefits. The Committee also takes note of the Government’s indication that a jobseeker is bound to accept a job offer if the job search has lasted for more than six months since the initial interview.

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Article 25, in conjunction with Article 21 of the Convention. Duration of payment of survivors’ benefits. The Committee notes from the Government’s report that, pursuant to the 2022 reform of the survivors’ pension scheme, the duration of the surviving spouse’s pension is limited to a period of ten years, or until the youngest child reaches the age of 18. The Committee recalls that Article 25 of the Convention requires survivors’ benefits be granted throughout the contingency, which is the loss of support suffered by the spouse or child as the result of the death of the breadwinner, as per Article 21(1). While the entitlement of spouses to survivors’ benefits may be conditional upon them being incapable of self-support, the Convention does not allow such entitlement to be based on other conditions such as caring for a dependent or to be limited in time, without this limitation being justified by a change in their own circumstances. The Committee therefore requests the Government to take the necessary measures to ensure that survivors’ benefits are paid throughout the contingency, in line with Article 25 of the Convention.

The Committee is raising other matters in a request addressed directly to the Government.

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The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

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Article 13 of the Convention (read in conjunction with Article 32). Introduction of active labour market policies for beneficiaries of disability pensions. The Committee notes that, in 2009, a workbank pilot was established aiming at finding employment for persons at a potential disadvantage in the labour market, such as partially disabled persons and the long-term unemployed. Workers have an employment relationship with the workbank, which then hires the workers out to enterprises and communities. The periods during which workers are not occupied are used for education and training purposes. The Committee also notes the concomitant adoption of a provisional Act promoting the return to work from disability pension (738/2009), in force from 2010 to 2013 at which stage the impact of the provisional act will be assessed. The Government indicates that the provisional Act makes it easier to suspend the disability pension and raised the maximum limit of earnings permitted during the payment of disability pension, offering better opportunities for low-income retirees only living on a pension to engage in and try gainful employment. Thus, a beneficiary of full disability pension may perceive an income up to 40 per cent (subject to a maximum of €714 per month) of his/her previous earnings without losing full pension rights. The Committee takes due note of this information and would be grateful if the Government would provide information in its next report on the results of the assessment of these measures indicating the extent to which they contributed to improve suitable employment opportunities for disabled persons as envisaged by the above provisions of the Convention.

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The Committee notes with satisfaction, from the Government’s reply to the Committee’s comments of 2001 concerning the application of Article 12 of the Convention, in conjunction with Article 32(e), that the provision allowing suspension or reduction of the disability pension in cases where the beneficiary caused their invalidity through gross negligence has been removed from the new pension legislation which entered into force in 2007.

The Committee would also like the Government to comment at its earliest convenience on the issues raised in the observations on the Government’s report made by the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Professionals (STTK) and the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA).

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Part II (Invalidity Benefit), Article 12 of the Convention, in conjunction with Article 32(e). In reply to the Committee’s previous comments, the Government indicates that no motion has been made to remove the provisions contained in the employment pensions Acts for the public sector (VEL, KVTEL) and the Employees’ Pension Act (TEL) according to which disability pension may be suspended or reduced if the beneficiary has caused his invalidity through gross negligence.

The Committee notes this information. It recalls that a similar provision in the National Pensions Act (KEL) has been repealed already in 1983. Taking into account that the said provision of the employment pensions Acts are only very rarely used, the Committee hopes that the Government would not have any difficulty in repealing it when the legislation is next revised, so as to give full effect to Article 32(e) of the Convention which allows for suspension of benefit only where the contingency has been wilfully caused by the serious misconduct of the person concerned.

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The Committee notes the observations presented by the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Unions of Academic Professionals (AKAVA). As these organizations express concern over the impact of changes adopted to the pensions scheme, in particular the disability pensions, the Committee would be grateful if the Government would continue to supply in its next report detailed information on the incidence of such changes on the application of the corresponding provisions of the Convention, as well as the statistical information required by the report form under Article 26 of the Convention.

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Part II (Invalidity Benefit), Article 12 of the Convention, in conjunction with Article 32(e). In reply to the Committee's previous comments, the Government indicates that the employment pensions acts for the public sector (VEL, KVTEL) and the Employees' Pension Act (TEL) still contain a provision according to which disability pension may be suspended or reduced if the beneficiary has caused his invalidity through gross negligence; in practice, however, this provision is applied extremely rarely. There is no comparable provision in the Seamen's Pensions Act (MEL). The Government adds that, so far, no motion has been made to remove this provision from the employment pensions acts.

The Committee notes this information. It recalls that similar provision of the National Pensions Act (KEL) has been repealed already in 1983. Taking into account that the said provision of the employment pensions acts has fallen into disuse (according to the Government, the last case dates back to 1985), the Committee hopes that the Government would not have any difficulty in repealing it when the legislation is next revised, so as to give full effect to Article 32(e) of the Convention which allows for suspension of benefit where the contingency has been wilfully caused by the serious misconduct of the person concerned.

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1. In its previous comments, the Committee expressed the hope that the ongoing reform of the pensions scheme will enable workers engaged in occupations that are arduous or unhealthy to receive old-age benefit before the age of 65 years, in accordance with Article 15, paragraph 3, of the Convention, despite the fact that public sector workers in such jobs are no longer entitled to old-age pension before 65 years of age. The Committee notes with interest, from the Government's reply, that flexible retirement before 65 years of age is now possible for public sector employees on the same terms as for private sector employees; thus, public sector employees in arduous or unhealthy occupations have the opportunity to take an early old-age pension at age 60 and to apply for a part-time or an individual early pension at age 58. An employee qualifies for individual early pension, which is equal in size to the disability pension, if he has a long history of work and if his capacity for doing his work has decreased taking into account the strain and wear of the job and the working conditions.

2. The Committee has also noted the observations presented by the Confederation of Unions of Academic Professionals (AKAVA) and the Central Organization of Finnish Trade Unions (SAK). As these organizations express concern over the impact of the changes adopted to the employment pensions scheme, in particular on the level of the benefits, the Committee would ask the Government to supply in its next report detailed information on the incidence of such changes on the application of the corresponding provisions of the Convention, as well as the statistical information required by the report form under Article 26 of the Convention.

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The Committee asks the Government to refer to its observation, and wishes to point out the following:

Part II (Invalidity Benefit), Article 12 of the Convention, in conjunction with Article 32(e). The Committee notes the Government's reply to its previous request concerning the application, in practice, of the provisions of the national legislation concerning pensions applicable to workers in the public sector and seafarers (VEL, KVTEL and MEL) and of the National Pensions Act (KEL) which provide that invalidity benefit may be refused or reduced, amongst other grounds, if the beneficiary has caused the invalidity through gross negligence.

The Government indicates in its reply that the above-mentioned provision of the National Pensions Act (KEL) was repealed in January 1983 and that the provisions of the other laws referred to in the Committee's request have not been applied except on one occasion in 1985 pursuant to the Local Government Employees Act (KVTEL).

The Committee notes this information with interest and hopes that in a future review of the national legislation the above-mentioned provisions of the legislation on pensions applicable to workers in the public sector and seafarers will also be brought fully into conformity with Article 32(e) of the Convention under which benefits may be suspended only when the contingency has been wilfully caused by the serious misconduct of the person concerned.

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The Committee notes the detailed information supplied by the Government in its last report and notes with interest the entry into force of the reform of the pensions scheme, which also covers public sector workers. The Committee notes in particular the existence of early and deferred old-age pensions and partial retirement pensions, for workers in both the public and private sectors, and the invalid's early allowance, established on an individual basis, for 16-64 year-old persons with decreased functional capacity who do not receive a disability pension. The Committee also notes the various amendments to the survivors' benefit scheme (PEL and TEL).

The Committee hopes that these reforms will enable workers engaged in occupations that are arduous or unhealthy to receive old-age benefit before the age of 65 years, in accordance with Article 15, paragraph 3, of the Convention, and in the conditions laid down by this instrument, despite the fact that public sector workers in such jobs are no longer entitled to old-age pension before 65 years of age and despite the amendments planned for raising gradually by the year 2002 the minimum age for entitlement to a pension for certain other categories of workers (for example seafarers).

The Committee has also noted the observations presented by the Finnish Employers' Confederation (STK), the Employers' Confederation of Service Industries (LTK), the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Salaried Employees (TVK).

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1. The Committee wishes to refer to its observation and further requests the Government to provide clarification on the following point:

Part II (Invalidity benefit), Article 12 of the Convention (in conjunction with Article 32(f)). The Government indicates in its report that, under the Pensions Acts applicable to workers in the public sector and to seafarers (VEL, KVTEL and MEL Acts), invalidity benefits may be refused or reduced, inter alia, if the beneficiary has caused the invalidity through gross negligence. Such benefits may also be refused or reduced on those grounds under the National Pensions Act (KEL), but only until the beneficiary reaches the normal age of retirement, namely 65 years. The Committee requests the Government to provide in its next report a few examples illustrating the practical application of the relevant provisions of the above-mentioned legislation.

2. Furthermore, the Committee notes the Government's statement to the effect that a general reform of the survivors' pension scheme is being considered, but that the relevant Bill has not yet been introduced to Parliament. The Committee hopes that the Government will not fail to take account, in carrying out that reform, of the provisions of Part IV of the Convention and of the corresponding provisions of Parts V and VI.

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Part III (Old-age benefit), Article 15, paragraph 3, of the Convention (in conjunction with Article 18). With reference to its earlier comments (concerning the lowering of the age of retirement below 65 years in respect of persons employed in arduous or unhealthy occupations), the Committee has examined the Government's detailed report and noted with satisfaction the introduction of a flexible retirement scheme for workers in the private sector, both salaried and self-employed (including agricultural workers and seafarers). It also notes that the introduction of a similar retirement scheme in the public sector is envisaged for July 1989, and that a bill on that subject has already been submitted to Parliament. The new scheme provides for an early retirement pension to be granted to persons over 55 years of age whose working capacity has been reduced due to ageing and the arduous nature of their work. The rate of such pensions is equivalent to that of a full invalidity pension, and they are granted until the age of 65 whereupon they are replaced by an old-age pension. The new scheme also provides for an early old age (from 58 years) or delayed pension and a part-time old-age pension intended to supplement the income of an elderly person working part time.

The Committee also notes with interest from the information provided in the report that in the public service, although the minimum age for entitlement to an old-age pension is generally 63 years, there are certain categories of arduous or unhealthy occupation in respect of which the minimum age is set at 55, 58 or 60 according to the nature of the occupation.

Furthermore, the Committee notes the comments made by the Finnish Employers' Federation, which considers that the introduction of the new flexible retirement scheme was a matter of necessity, despite the increase in contributions to the contributory pension scheme.