All Finnish pensions, including earnings-related pensions, will only increase by 0.4 per cent in 2015, the Government decided in its framework session. For pensioners, the decision translates to a permanent decrease in their earnings-related pensions unless a compensatory increment in pension indices is adopted in the years to come. The previous time earnings-related pension indices were cut in Finland was during the 1990s recession.
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Pension freeze angers Finnish earners
The Government has explained its decision by pointing out that with earners already consenting to wage moderation, everyone will hence be in the same boat by consenting to a marginal increase in income and a decline in purchasing power.