c


 , or p

   (in Finnish), also  or › 




 
(in Swedish), and ’
or ’  



(in English), is a Finnish government agency in charge of settling
benefits under national social security programs. Kela was founded in 1937 to handle retirement
pay, but in the 1980s and 1990s its role was expanded to handle other fields like child benefits,
unemployment benefits, sickness benefits, health insurance and student benefits.

Despite the use of the word "insurance" in the English translation, Kela is funded directly from
taxation, not from insurance premiums. Coverage under the scheme is given to all permanent
residents of Finland. p

   literally means "National Pension Institution " or,
corresponding to the Swedish name, "Folk Pension Agency", reflecting its original function as the
national provider of retirement benefits.

£ 
Founded on 16 December 1937, Kela was initially a pension institution, its sole responsibility to
provide basic state pensions (³national pensions´). Since then, Kela¶s operations have been
expanded, diversified and modernized. From a pension insurance institution, Kela has evolved into
an institution offering social protection for all. Kela is now a provider of cradle-to-grave social
protection.

   

Following the adoption of the first National Pensions Act by Parliament, Kela begins operations on
16 December.


The National Pensions Act becomes effective. The National Pensions Scheme was originally a
retirement savings scheme. The premiums paid by the insured were deposited in an interest-bearing
individual account with Kela.


The first disability pensions are granted.


Kela begins to award old-age pensions.


National pensions reform: Individual accounts are closed, the national pension is turned into a
pension composed of both means-tested and flat-rate parts and tax-like pension insurance
contributions are introduced.


Citizens are issued with a personal social security code and a health insurance card. A certificate
from the civil registry (as proof of identity) is no longer required to accompany applications for
pension.

Besides the National Pension Insurance, Kela becomes responsible for administering the National
Health Insurance scheme. Before, Kela's clientele had comprised pensioners and persons with
disabilities. Now, all residents of Finland become potential clients of Kela. At the same time, new
approaches are introduced to rehabilitation and disease prevention and a basis is created for early
rehabilitation. Finland is divided into 204 health insurance districts, with each district encompassing
one or several municipalities.


The second stage of the National Health Insurance is introduced, extending coverage to doctors¶
fees and cutting the waiting period for the sickness allowance from 14 days to 7 days.


The first survivors' pensions, child disability allowances and pensioners¶ housing allowances are
granted.


An organizational reform merges the hitherto separate field organizations for pension insurance and
health insurance into a unified regional and local administration. The reform is aimed at improving
customer service, speeding up decision-making and strengthening civic participation. The
possibility to delegate decision-making in pension matters from the central administration to the
local offices is introduced.

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The 1980 national pensions reform turns the national pension into a non-means tested minimum
pension available to all residents of Finland.

JY The daily allowance and maternity allowance schemes (National Health Insurance) are
reformed in 1982
JY Care and rehabilitation assistance introduced in 1983
JY In a 1985 reform of unemployment protection, the provision of basic unemployment
benefits is entrusted to Kela.
JY Disability allowances introduced in 1989.

c 

Kela's operations expand to cover also students and families with children. Responsibility for
certain local government and central government functions is reassigned to Kela. The focus of
Kela¶s operations shifts increasingly to the local offices.

Income protection of families with children: Following the handover of child benefits and child
home care allowances in 1993, the administration of the maternity grants scheme is turned over to
Kela in 1994

JY Social protection of students: administration of the student financial aid and student housing
supplements schemes is reassigned to Kela in 1994
JY Administration of the conscript allowances scheme is handed over to Kela in 1994
JY Administration of the general housing allowances scheme is reassigned to Kela in 1994
JY The labour market subsidy scheme is brought under the administration of Kela in 1994
 JY School transport subsidy scheme introduced in 1997.

c 

Kela has implemented several administrative reforms and continues to actively develop new
customer service channels.

JY A new Act on the Social Insurance Institution is passed in 2001, leading to the establishment
of a separate Board governing Kela¶s operations.
JY The adoption of electronic document management transforms internal operations in 2000-
2004. Decisions on claims for benefit are from now on made electronically throughout
Finland, making it possible to shift workloads between areas with heavier and lighter
workloads.
JY In 2006, Kela begins consolidating telephone customer service into a new Customer Contact
Centre. The goal is to adopt telephonic customer service nationwide by 2009.
JY Anline customer service channels have been developed for various benefits. Kela's aim is
that all most common benefits can be claimed online by the year 2010. The long-term aim is
that all Kela benefits are available online.




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