History

1989

The State Pension Fund 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.