Download Oecd Economic Surveys: Finland 2003 (Oecd Economic Surveys) by Organisation for Economic Co-Operation and Development PDF

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By Organisation for Economic Co-Operation and Development

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Various proposals have been made to raise competition among the institutions managing the pension funds. Currently the Ministry of Social Affairs and Health sets a yield requirement annually, following proposals by the insurers, for all pension institutions, while the solvency level is calculated based on a portfolio model. If an institution does not reach this rate of return, its solvency capital decreases. If yields are better than required, profits are used to raise solvency or to pay premium refunds to the employers.

2. Total employment as a per cent of working-age population (both aged 15-64). 3. Registered unemployed. Source: Ministry of Labour, Statistics Finland, Ministry of Finance and OECD. Table 5. 4 3 3 6 2 OECD (2002), OECD Employment Outlook. 5 The high rate of unemployment among younger workers is largely explained by the unusually large proportion of students who are counted as unemployed, which exhibits a strong seasonal pattern but still has a substantial effect on an annual average basis. 5 per cent in 2002, and so brings it closer to the EU average.

This is despite a fall in net interest payments by ½ per cent of GDP since 1999. They are included in the expenditure target, even though government has little influence over their development. Much of the rise in central government spending is explained by increased transfers to local government. Indeed, local government consumption rose much faster than that of central government, with the former rising by 13 per cent in nominal terms between 2000 and 2002 (equivalent to ¾ per cent of GDP), whereas central government consumption expenditure has increased 6 per cent (equivalent to a constant share of GDP).

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