Fortum’s Finnish senior executives participate in the Finnish TyEL pension system, which provides for a retirement benefit based on years of service and earnings in accordance with the prescribed statutory system. Under the Finnish pension system, earnings include base pay, annual bonuses and taxable fringe benefits, but gains realised from the share bonus system are not included in that definition. Finnish pension legislation offers a flexible retirement from age 63 to age 68.
Fortum’s senior executives outside Finland participate in pension systems based on statutory pension arrangements and market practices in their local countries.
In addition to the statutory pensions, the members of the Fortum Executive Management Team have supplementary pension arrangements. The Group policy is that all new supplementary pension arrangements are defined contribution plans.
The retirement age for Fortum’s President and CEO is 63 and for the other members of the Fortum Executive Management Team 60-65. For the President and CEO and some members of the Fortum Executive Management Team, the maximum pension can be 60 % of the pensionable salary, with the pension insured by an insurance company and for some members, the maximum is 66 % of the pensionable salary, with the pension provided by Fortum's Pension Fund.