The administrative cost component collected as part of the TyEL contribution will decrease next year. The component will be reduced by an average of 10.5 per cent and as much as 18.9 per cent for our smallest customers.
“We have gained a great number of new customers in recent years and this growth has enabled us to make our operations more efficient. Since 2023, the average administrative cost component has decreased by almost 35 per cent”, says Elina Fogelholm, CEO of Veritas.
The administrative cost component is part of the TyEL contribution paid by employers to cover the administrative costs of insurance and pensions. The component is determined on the basis of a company’s payroll.
The competition between earnings-related pension companies has increased in recent years, as administrative costs have become company-specific. This has increased incentives to improve efficiency throughout the sector.
“Competition is a good thing, and it doesn’t only mean more efficient operations. We have also invested in our services, thereby enabling us to attract new customers. We are the only earnings-related pension company that provides each customer with a dedicated contact person.”
