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Kela to continue paying pension top-ups to recipients abroad

Last month the government ruled that the supplement to the lowest pensions is a social benefit limited to residents.

Euro bills in a wallet.
Image: Tiina Jutila / Yle
  • Yle News

The government recently announced it would stop supplementing small pensions for recipients living abroad, but social insurance institution Kela says it will keep paying the top-ups for the time being.

In a statement on Friday, benefits agency Kela said it lacks formal guidance on when to stop paying so-called national pensions to residents outside of Finland.

"Kela does not yet know when the plan to stop payments of the national pension to recipients outside Finland will be implemented," the benefits agency said in its statement.

The national pension tops up earnings-related pensions that fall under a minimum level.

Finance Minister Riikka Purra's (Finns) announcement last month to stop issuing the supplement drew criticism, particularly in Sweden, where most of these recipients live.

For now, Kela said it would continue paying benefits available under the National Pensions Act to recipients outside Finland, with no action required from beneficiaries at this time.

The average national pension top-up for Finnish pensioners in Sweden is around 130 euros a month.

Retirees can claim supplemental pension benefits if their earnings-related pensions fall below 1,601 euros per month for a single person or 1,435 euros monthly for those cohabitating.

Kela said the top-up practice is based on an EU regulation and bilateral social security agreements, noting that it pays the benefit to around 25,000 persons residing outside Finland, about 18,000 of whom live in Sweden.

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