---
title: "Pension Funds and Risk-sharing in the Finnish Earnings-related Pension System"
authors:
  - name: "Lassila, Jukka"
    url: "https://www.etla.fi/henkilot/lassila-jukka/"
  - name: "Valkonen, Tarmo"
    url: "https://www.etla.fi/henkilot/valkonen-tarmo/"
    sameAs:
      - "https://orcid.org/0000-0001-9052-4390"
      - "https://scholar.google.com/citations?user=dNgtiMIAAAAJ"
date_published: "2019-05-07"
series: "ETLA Raportit - Reports"
series_number: "90"
issn:
  - "2323-2447"
  - "2323-2455"
jel_codes:
  - "E17"
  - "H55"
language: "fi"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-90.pdf"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-90"
abstract_translations:
  en: "We study the use of pension funds in the Finnish earnings-related pension system with the aim of smoothing contributions over time under demographic and economic risks. Smoothing is affected by the revisions in long-term forecasts and is thus imperfect. As a partially funded defined-benefit system, demographic risks and asset yield risks directly affect the contributions. In a general equilibrium setup, these risks also affect wages and thus pension benefits and replacement rates. We also consider alternative benefit rules where risks are transferred more to the pensioners."
---

# Pension Funds and Risk-sharing in the Finnish Earnings-related Pension System

**Published:** 2019-05-07  
**Categories:** Publications, Reports  
**URL:** https://www.etla.fi/en/publications/elakevarat-ja-riskien-jako-tyoelakejarjestelmassa/

#### Abstract

We study the use of pension funds in the Finnish earnings-related pension system with the aim of smoothing contributions over time under demographic and economic risks. Smoothing is affected by the revisions in long-term forecasts and is thus imperfect. As a partially funded defined-benefit system, demographic risks and asset yield risks directly affect the contributions. In a general equilibrium setup, these risks also affect wages and thus pension benefits and replacement rates. We also consider alternative benefit rules where risks are transferred more to the pensioners.

---

## Additional Information

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-90.pdf

**Kirjoittajat:** Lassila, Jukka - Valkonen, Tarmo

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-90-kansi.jpg

**Key Words:** Pensions, Funding, Contribution smoothing, Risks, Generational fairness

**Jel:** E17, H55

**Paivays:** 07.05.2019

**Sivuja:** 37

**Kieli:** fi

**Sarja:** ETLA Raportit - Reports

**Sarja Nro:** 90

**Issn:** 2323-2447, 2323-2455 (Pdf)

**Saatavuus:** 2

**Publication Research:** No

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