Fortum’s Finnish 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 are defined as 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 without full-pension restrictions.
Fortum’s executives outside Finland participate in pension systems based on collective agreements and market practises in their local countries.
In addition to the statutory pensions, the members of Fortum Management Team have supplementary pension arrangements. The Group policy is that all new
supplementary pension arrangements are defined contribution plans.
Retirement age for Fortum’s President and CEO is 63 and for other members of the Fortum Management Team 60-65. For the President and CEO and the other members of the Fortum Management Team, the maximum pension can be 60% of the salary, with the pension insured by an insurance company, and for some executives the maximum is 66% of the salary, with the pension insured and paid by Fortum's Pension Fund.