20 December 2024
During 1968–1990, Tietoevry granted a supplementary pension plan to its employees in Finland. The plan currently includes approximately 800 former employees who were members of the Tieto Pension Fund at the time. The plan was closed for new participants in 1990.
In 2021, Tietoevry initiated an amendment to this supplementary pension plan, and removed the employment pension TyEL index link, which was replaced by the pension company’s own customer credit model and 6% increase to the defined pension benefit effective from 2022. The change was assessed and implemented utilizing primarily the expertise of pension insurance companies, and the impact was considered to be neutral for the beneficiaries.
In the past few years, inflation has been higher than estimated in 2021, contributing to elevated TyEL index changes. Consequently, the benefits from the supplementary pension plan have not reached the level of TyEL index linked plans. As a result, Tietoevry entered into discussions with beneficiaries about the basis of the decision made in 2021. This process revealed new information regarding the facts and circumstances at the time the decision was made in 2021. After a reassessment, Tietoevry concluded to amend the supplementary pension plan and revert to the TyEL index linkage.
As a result, these defined pension benefit plans will be TyEL index linked as of 1 January 2025 and the affected beneficiaries will be compensated accordingly. The company estimates that the increase in pension liability will be approximately EUR 5.8 million in total, out of which EUR 1.6 million will be paid out as a one-time compensation in the first quarter of 2025. The increase in pension liability will be booked in the fourth quarter of 2024 and classified as a one-time item.
The beneficiaries of the supplementary pension plan have been separately informed about the amendment.
For further information, please contact:
Tietoevry Newsdesk, +358 40 5704072, news (at) tietoevry.com
Tietoevry creates purposeful technology that reinvents the world for good. We are a leading technology company with a strong Nordic heritage and global capabilities. Based on our core values of openness, trust and diversity, we work with our customers to develop digital futures where businesses, societies, and humanity thrive.
Our 24 000 experts globally specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in around 90 countries. Tietoevry’s annual turnover is approximately EUR 3 billion and the company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tietoevry.com