History
1989
The State Pension Fund of Finland (VER) is established within the State Treasury for the purpose of preparing for future pension costs and for balancing pension expenditure.
The funding target, 1.5 times the state payroll as in private pension schemes, is set for 2010.
1991
Pension contributions from state offices, institutions, and enterprises are directed to VER.
1993
Pension contributions from state employees are directed to VER. Investment activities are expanded. The transfer of funds to the budget is restricted to three quarters of pension expenditure.
The VER Board of Directors is appointed to bear responsibility for the fund’s investment activities.
1994
The funding target is revised and now encompasses the whole state pension scheme instead of the former state payroll figure.
Director General Teuvo Metsäpelto starts as the first Chairman of the Board of Directors.
1999
Municipalities start to pay in pension contributions for teachers to VER.
2000
The budget transfer is reduced to one third of annual pension expenditure until the end of 2006 Subsequent to this,one half.
The funding target is revised to be 1.5 times the total state payroll in 2010 and is tied to the state’s pension liability (being at least 20 per cent in 2010). The transfer of VER assets to the state budget is reduced to a maximum of one third of pension expenditure for 2001–2006.
Dedicated staff are hired for the fund.
Investment activities are extended to include equity investments.
2003
The fund’s first full-time managing director, Timo Löyttyniemi, is appointed. Eino Keinänen is appointed Chairman of the Board of Directors.
2005
The funding target is set at 25 per cent of the state’s pension liability, and this is expected to be achieved by 2020.
The annual transfer from VER to the state budget is prescribed as equaling 40 per cent of annual pension expenditure until the target funding ratio is met. Subsequently, the amount of the transfer is to be specified annually in the state budget.
2006
The role of the Ministry of Finance as supervisor of VER is defined more precisely and the Ministry is granted the right to issue general regulations concerning VER’s administration, finances and investment policies.
The tasks of the VER Board of Directors are laid down in law.
The duties of VER’s auditors are laid down in law.
The transfer of assets from VER to the state budget is reduced for 2006 and 2007 to expand the fund.
The Ministry of Finance issues its first operating guidelines to VER in November.
2007
The Act on the State Pension Fund of 1989, with all its amendments, is revoked and a new Act is passed.
In March and November, the Ministry of Finance further specifies the operating guidelines issued in 2006.
2008
The global financial crisis begins.
2009
Antti Tanskanen is appointed as Chairman of the Board of Directors.
A reform of the Universities Act is implemented, which leads to the gradual transfer of university employees to private pension schemes.
2010
VER celebrates its 20th anniversary.
The European debt crisis begins.
2011
European sovereign debt crisis.
VER signs the United Nations Principles for Responsible Investment (UNPRI).
VER joins Finland’s Sustainable Investment Forum (FINSIF).
The execution of state pension security is transferred from the State Treasury to Keva.
2012
The sum of VER’s investment assets exceeds EUR 15 billion.
The decision is made to transfer the employer services related to the state pension scheme to Keva from 2013 onwards.
2013
The budget transfers from VER’s assets exceed premium income for the first time. This means that VER begins to fulfil its second original task of balancing state pension expenditure.
The Act on the State Pension Fund is amended, transferring to it clauses concerning the funding ratio and pension premiums from the State Pension Act.
VER is named Finland’s Best Pension Investor for the third time in a competition run by Investment & Pensions Europe (IPE) magazine. The reasons behind the award include VER’s excellent long-term strategy combined with dynamic short-term changes in the investment portfolio.
2014
VER decided to reorganise its portfolios and establish a new portfolio called Position Management and Diversified Investments, which will start on January 1st 2015.
VER won fourth time the 2014 Investment & Pension Europe (IPE) ”Best Pension Fund in Finland” award.
2015
Jukka Perkkarinen is appointed as a Chairman of the Board of Directors for the next three years.
As of June, Timo Viherkenttä is appointed as a fund's CEO.
2016
VER’s Board of Directors adopted a strategy to achieve the 25 per cent target funding ratio of the state pension system by 2033, if not earlier.
VER’s Board of Directors adopted new principles for responsible investing.
2017
A new act on public sector pensions that also covers the issues previously included in the State Pension Act entered into force at the beginning of 2017. The new act includes provisions on employment pension security foreseen in the pension reform effective as of 2017. The provisions on the financing of state pension security previously contained in the State Pension Act were incorporated into a new act on the financing of pension security for government employees.
2018
The Ministry of Finance appoints a Board of Directors for VER for the following three-year term. Jukka Pekkarinen continues to serve as the Chair of the Board.
2019
VER revises the principles of responsible investing which help fine-tune VER’s policies in many respects.
The memorandum of the Ministry of Finance's working group assessing the revision of the legislation concerning the State Pension Fund (2019:68) is completed at the end of the year. The memorandum explores the alternatives for amending legislation in ways that would allow long-term planning of the Fund’s activities, while at the same time effectively balancing for central government pension expenditure.
2020
Timo Löyttyniemi returns as the fund's CEO after an EU appointment (leave of absence).
VER revises the principles of responsible investing and carbon intensity is adopted as the key indicator for the carbon footprint. VER seeks to reduce the carbon intensity of its equity investments over the next few years.
COVID-19 hits the investment markets.
VER celebrates its 30th anniversary.
2021
VER generates over EUR 10 billion in added value for the Finnish State. This added value represents the difference between VER’s annual return and the average cost of government debt.
VER achieves the 25% funding ratio.
Bill for the Act on the State Pension Fund circulated for comment in October 2021.
2022
The new Act on the State Pension Funds enters into force 8 April 2022. A key amendment to the law was the increase in transfers to the government budget from 40% to 45%, to be phased in during 2024–2028. If VER's funding ratio exceeds 25% for two consecutive calendar years, an additional 3% transfer is made until the funding ratio falls below 25%.
Vesa Vihriälä is appointed as a Chairman of the Board of Directors.
2023
VER's Board of Directors adopts VER’s new strategy.