International Programs

Totalization Agreement with Finland

Contents
Introduction
Eliminating dual coverage for self-employment
Finnish certificates for employees and self-employed workers
Monthly benefits
How benefits can be paid
Claims for benefits
Payment of benefits
For more information about Finland's social security programs

Introduction

For Finland, the Agreement covers the National Pension Scheme and the general Survivors' Pension Scheme, the Employment Pension Scheme (also including the pension schemes for the self-employed and for persons in the employ of the State, the Church and the communes, as well as the Seamen's Pension Scheme), employer contributions, and where applicable, sickness and maternity insurance and child allowances.

Note: Workers exempted from Finnish social security coverage by the Agreement pay no social security taxes for  other programs such as sickness and maternity insurance and child allowance benefits and generally cannot receive benefits from them. If the Agreement exempts you from Finnish coverage, you and your employer may wish to arrange for alternative benefit protection.

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Eliminating dual coverage for self-employment

Self-employed workers who would be dually covered under the two countries’ systems absent the Agreement and who reside in the United States are assigned U.S. coverage. Self-employed workers who would be dually covered under the two countries’ systems absent the Agreement and who reside in Finland are assigned Finnish coverage. However, workers normally self-employed in one country who transfer their trade or business to the other country for one year or less will remain covered under the country from which the worker transferred the self-employment activity.

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Finnish certificates for employees and self-employed workers

Employers and self-employed workers must request a certificate of coverage to establish an exemption from U.S. Social Security contributions.

Please mail your request to:

Finnish Centre for Pensions
Customer Service
FIN-00065 ELÄKETURVAKESKUS
FINLAND

Please use the application form available on Eläketurvakeskus’ web site. www.etk.fi

The information needed to complete the application includes:

  • Worker's full name;
  • Worker's date of birth;
  • Worker's country of citizenship;
  • Worker's country of permanent residence;
  • Worker's Finnish personal identity number, if applicable;
  • Nature of self-employment activity, if applicable;
  • Name and address of the employer in the United States and the Agreement country (if self-employed, address of trade or business in both countries); and
  • Date of transfer and anticipated date of return of employment or self-employment in the Agreement country.

U.S. employers should retain certificates of coverage in case of an audit by the IRS. Employers should not send a copy to the IRS unless the IRS specifically requests the certificate of coverage.

Self-employed workers should attach a copy of the certificate of coverage to their U.S. tax return every year as proof of the exemption.

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Monthly benefits

Finland pays benefits through two separate programs. The National pension pays pensions to people who meet certain residence requirements. The amount is pension income tested and dependent on the length of residence in Finland. The Earnings-Related Pension pays benefits based on a worker’s earnings and total years of coverage.

Under the U.S. Social Security system, you may earn up to four credits each year depending on the amount of your covered earnings. For example, in 2022, you receive one credit for each $1,410 of your covered annual earnings up to a maximum of four credits per year. The amount needed to earn a work credit goes up slightly each year. For more information, see  How You Earn Credits (Publication No. 05-10072).

The Finnish system measures credits in months. To simplify the information in the table, we show the requirements in years of credits.

Retirement or old-age benefits

United States

Finland

Worker—Full benefit at full retirement age.* Reduced benefit as early as age 62. Required work credits range from one and one-half to 10 years (10 years if age 62 in 1991 or later).

Worker—
National pension: Retirement age 65. Full pension, if resident of Finland at least 80 per cent of time between the age of 16 and the age of 65 or the beginning of the pension. AlsoAlso, the family status and other pensions and compensations affect the amount of pension.
Old-age pension can be postponed. For persons born before 1962 the old-age pension is increased by 0.6 per cent for each month that the pension is deferred. For persons born 1962 or later, the old-age pension is increased by 0.4 per cent by each month that the pension is deferred.
Early old-age pension at age 64 for persons born 1958-1961. A person born in 1962 or later does not qualify for early old-age pension. Early old-age pension is reduced permanently by 0.4 per cent for each month the pension is drawn early. A person residing in Finland must have resided in Finland at least 3 years after the age of 16 to qualify for a pension. A person residing in the U.S. must be a citizen of Finland or the U.S. and must have resided in Finland for five continuous years after the age of 16.

Earnings-Related Pension: Old-age pension at retirement age. Birth year determines retirement age. The old-age pension is increased by 0.4 per cent for each month that the pension is deferred.
***
Partial old-age pension (25 of 50 % of the pension accrued) three years before reaching the retirement age. Partial old-.age pension is reduced permanently by 0.4 per cent for each month the pension is drawn early.****

*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
**For individuals born 1965 and later, the retirement age of the national pension is the same as that of the earnings related old-age pension. 
***
Effective January 1, 2017, Finland passed a reform to incrementally increase the statutory retirement age by 3 months per year starting January 2018, that will affect those born between 1955 and 1964.  The reform will gradually increase the statutory retirement age of the earnings-related pensions up to 65 by 2025.  For individuals born 1965 and later, the earliest retirement age will be based on life expectancy.
**** For those born before 1964, the age requirements is 61 years.

Disability benefits

United States

Finland

Worker—Under full retirement age* can get benefit if unable to do any substantial gainful work for at least a year. One and one-half to 10 years credit needed, depending on age at date of onset. Some recent work credits also needed unless worker is blind.

Worker—
National pension: At age 16-64** can get rehabilitation subsidy or disability pension if an illness or injury prevents from earning a reasonable living. A person residing in Finland must have resided in Finland at least 3 years after the age of 16 to qualify for a pension. When the person receiving disability pension moves to the U.S., pension can be paid for a citizen of Finland or U.S., if the pension was granted while residing in Finland and the person has resided in Finland at least 5 continuous years after the age of 16.

Earnings-related Pension: Disability pension can be granted to a person who has turned 17 but who has not reached their retirement age. Full disability pension with at least 60 percent loss of work capability and impairment expected to last at least one year. Partial disability pension with at least 40 percent loss of work capability and impairment.

As of 2017 a person may qualify for a years-of-service pension if:
  • They have done mental or physical work that requires great effort for at least 38 years,
  • Their ability to work is reduced, they were born in 1955 or later, and
  • They are 63 or older. ***

*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.

** Effective January 1, 2017, Finland passed a reform to incrementally increase the statutory retirement age by 3 months per year starting January 2018, that will affect those born between 1955 and 1964. The reform will gradually increase the statutory retirement age up to 65 by 2025.  For individuals born 1965 and later, the earliest retirement age will be based on life expectancy.  

*** For individuals born 1965 and later, the earliest age limit for years-of-service pension will be based on life expectancy.

Family benefits to dependents of retired or disabled people

United States

Finland

Spouse—Full benefit at full retirement age* or at any age if caring for the worker’s entitled child under age 16 (or disabled before age 22). Reduced benefit as early as age 62 if not caring for a child.

Spouse—No provision.

Divorced spouse—Full benefit at full retirement age.* Reduced benefit as early as age 62. Must be unmarried and have been married to worker for at least 10 years.

Divorced spouse—No provision.

Children—If unmarried, up to age 18 (age 19 if in an elementary or secondary school full time) or any age if disabled before age 22.

Children—No provision.

*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.

Survivors benefits

United States

Finland

Surviving spouse —Full benefit at full retirement age* or at any age if caring for deceased’s entitled child under age 16 (or disabled before age 22). Reduced benefit as early as age 60 (or age 50 if disabled) if not caring for a child. Remarriage does not affect benefits if it occurs after age 60 (or age 50 if disabled).

Surviving spouse—
National pension: Surviving spouse may be eligible for survivors’ pension if the conditions of the deceased person and surviving spouse or surviving cohabiting partner are fulfilled.

Conditions for deceased person:

  • Had resided in Finland at least 3 years after the age of 16.
  • Was under the age of 65 at the time of marriage; and
  • Resided in Finland at the time of death.
    • If the deceased resided in the U.S. at the time of death, the deceased must have been a national of a party of the agreement and resided in Finland at least five continuous years after the age of 16.

Also surviving spouse and surviving cohabiting partner must fulfill eligibility conditions.
Surviving spouse (married or registered partnership) may be eligible for survivors´ pension, if:

  • The surviving spouse has resided in Finland at least 3 years after the age of 16 and at the time of the death of the deceased or moved to Finland within a year after the death of the deceased.
    • If the surviving spouse resides in the U.S., must be a national of a party of the agreement and resided in Finland at least five continuous years after the age of 16.
  • Is younger than 65 years and have of have had a common child with the deceased.
    • If there wasn’t a common child with the deceased, the surviving spouse must have been at least aged 50 at the time of death and under the age of 50 when marriage occurred and the marriage lasted at least 5 years. A surviving cohabiting partner may be eligible as of 1/1/2022 if:
  • Cohabiting partner is under the age of 65,
  • Has resided in Finland for 3 years after the age of 16 and at the time of the death of the deceased or moved to Finland within a year after the death of the deceased.
  • Has started to cohabit before deceased partner turned 65, has lived with the deceased partner for a consecutive period of at least 5 years and is not married with anyone else; and
  • Has a common child with the deceased.
    • If the surviving cohabiting partner resides in the U.S., must be a national of a party of the agreement and resided in Finland at least five continuous years after the age of 16.

As of 01/01/2022, for widows and widowers and surviving partners of a registered partnership born in 1975 or later whose spouse dies in 2022 or thereafter, the benefit is paid for a fixed period of 10 years or if there is a child, until he/she reaches the age of 18. For cohabiting partners, the pension is paid until the child reaches the age of 18.

There are several factors, which affect the entitlement and the amount of survivors’ pension: the length of residence of the deceased person, the pension and all other incomes of the surviving spouse, the family circumstances (if the surviving spouse supports a child under the age of 18 or not, and if there is a new cohabitant or the surviving spouse is remarried).
Pension ceases if the surviving spouse remarries before the age of 50 and pension is converted into a lump sum equal to 3 years´ pension.

Earnings-Related Pension: Surviving spouse benefit may be payable if married before the deceased was age 65 and either:

  • They had a child in common.
  • Surviving spouse was at least age 50 or disabled at time of worker's death and the marriage occurred before the surviving spouse was age 50 and lasted at least five years.

A surviving cohabiting partner may be eligible if the deceased spouse died in 2022 or later and:

  • The surviving spouse has a dependent child under the age of 18 together with the deceased;
  • The surviving spouse and the deceased shared a household for at least five years before the deceased passed away;
  • The spouse and the deceased moved together into a shared household before the deceased spouse turned 65; and
  • Neither spouse was married to another person.

Divorced Surviving Spouse—Same as surviving spouse if marriage lasted at least 10 years.

Divorced Surviving Spouse—
National Pension: No provision.

Earnings-Related Pension: Same as surviving spouse if entitled to alimony payments from the deceased.

Children—Same as for children of retired or disabled worker.

Children—
National Pension: Under age 18, or age 21 if a student, and must reside in Finland at the date of the deceased’s death or must have moved to Finland during the year following the deceased's death. There are no citizenship or qualifying period requirements for a child in the Finnish legislation. The deceased must have resided in Finland at least 3 years after the age of 16 and resided in Finland at the time of death.

If the child resides in the U.S., must be a national of a party of the agreement and the deceased person must have resided in Finland at least five continuous years after the age of 16.

Earnings-Related Pension: Under age 20.

Lump-sum death benefit—A onetime payment not to exceed $255 payable on the death of an insured worker.

Lump-sum death benefit—
National pension: No provision.

Earnings-Related Pension: No provision.

*The full retirement age for survivors is age 66 for people born in 1945-1956 and gradually increases to age 67 for people born in 1962 or later.

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How benefits can be paid

If you have social security credits in both the United States and Finland, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country’s system, you will get a regular benefit from that country. If you do not meet the basic requirements, the Agreement may help you qualify for a benefit as explained below.

  • Benefits from the United States—If you do not have enough work credits under the U.S. system to qualify for regular benefits, you may be able to qualify for a partial benefit from the United States based on both United States and Finnish credits. However, for us to count your Finnish credits, you must have earned at least six credits (generally one and one-half years of work) under the U.S. system. If you already have enough credits under the U.S. system to qualify for a benefit, the United States cannot count your Finnish credits.
  • Benefits from Finland—Finland provides retirement, disability and survivors benefits through two separate programs.
  • The National pension pays pensions the amount of which is pension income tested and also dependent on the length of residence in Finland to persons who live in Finland.
  • The Agreement makes it possible for United States and Finnish nationals who live in the United States, to qualify for National pension retirement and survivors benefits if they have resided in Finland for five continuous years anytime after age 16. The five years of residence does not have to occur immediately before entitlement.
  • The Earnings-Related Pension pays benefits based on the worker's earnings level and total years of work. Also, certain social benefits accrue pension. There are no waiting periods or monetary limits to obtain the right to an earnings-related pension.
    Therefore, work credits under the U.S. system will not be counted when determining eligibility for Earnings related benefits.

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Claims for benefits

If you live in the United States and wish to apply for United States or Finnish benefits:

  • Visit or write any U.S. Social Security office.
  • Phone our toll-free number, 1-800-772-1213, 8 a.m. to 7 p.m., Monday through Friday. If you are deaf or hard of hearing call our TTY number, 1-800-325-0778.
  • Complete SSA-2490-BK (Application for Benefits Under a U.S. International Social Security Agreement) and mail to your local Social Security Administration office.
  • In order to apply for Finnish pensions, you should fill in application forms SF/USA 3C (Finnish earnings-related pensions), FIN/USA 3A (Finnish national pensions, old-age pension), FIN/USA 3B (Finnish national pensions, survivors’ pension). Pension claimant should file the application forms to SSA in the USA or to Finnish Centre for Pensions (Eläketurvakeskus, ETK).

    If you live in Finland and wish to apply for U.S. or Finnish benefits, contact:

    • Federal Benefits Unit
      United States Embassy
      PO Box 4075 AMB
      0244 Oslo
      Norway
    • Kela’s (Social Insurance Institution) customer service, any Finnish earnings-related pension provider or Finnish Centre for Pensions (Eläketurvakeskus, ETK) to file for U.S. or Finnish benefits.

You can apply with one country and ask to have your application considered as a claim for benefits from the other country. Information from your application will then be sent to the other country. Each country will process the claim under its own laws—counting credits from the other country when appropriate—and notify you of its decision.

If you have not applied for benefits before, you may need to provide certain information and documents when you apply. These include:

  • The worker’s United States and Finnish social security numbers.
  • Proof of age for all claimants.
  • Evidence of the worker’s U.S. earnings in the past 24 months.
  • Information about the worker’s coverage under the Finnish system.

You may wish to call the social security office before you go there to see if you need any other information.

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Payment of benefits

Each country pays its own benefit. The U.S. Department of Treasury makes U.S. payments each month that covers benefits for the preceding month. The Finnish system makes payments once a month. For more information, contact the Finnish authorities at the address in the section titled, “For more information.”

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For more information about Finland's social security programs

For more information about Finland’s social security programs, visit any social security office in Finland. If you do not live in Finland, write to the following addresses.

For more information about the National pension, write to:

Social Insurance Institution (Kela)
P.O. Box 78
00381 Helsinki
FINLAND
Internet: https://www.kela.fi/web/en/centre-for-international-affairs

For more information about the earnings-related pension, write to:

Finnish Centre for Pensions Customer Service
FI-00065 ELÄKETURVAKESKUS
FINLAND
Internet: www.etk.fi

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