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Economic Profitability of
Vocational Rehabilitation
within the Finnish Statutory
Earnings-related Pension
Scheme
Mikko Pellinen
12.EFRR/13.9.2013/Istanbul
Persons who received vocational rehabilitation
in 1992 - 2012
12,000
11,138
10,808

10,000

9,715
9,081
8,521
7,955

8,000

7,409
6,834
6,257

6,000

5,202
4,617

5,548
4,969

3,879

4,000
2,665

2,836

2,169

2,000
541

716

1,045

1,309

0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

The Finnish Centre for Pensions

2
Total costs of vocational rehabilitation
in 1992 - 2012
Milj. €
100
93

90
82

80
70

70
63

60

54
49

50
40

40
27

30
17

20
10

0

2

4

5

6

9

11

21

31

44

36

24

14

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Rehabilition services

Rehabilitation allowance
The Finnish Centre for Pensions

3
Rehabilitation programs which ended
in 2003 – 2012 estimated results

6

50

2003

57

Programmes:

15

7

14

6

2 023

16

2004

2 167

2005

2 523

2006

3 270

2007

3 716

2008

3 695

2009

4 078

2010

4 225

2011

4 575

13

2012

64

0

10

20

30

8

63

40

50

60

70

13

80

back to work

90

8

5 084

100

not working, not retired

other

7

partial disability

full disability pension
The Finnish Centre for Pensions

4
Rehabilitation programs which ended
in 2003 -2012 estimated results
Rehabilitation background:

Programmes:

Not retired
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Retired

67 65

1714

8

70

8

12

69
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

39

5

13

20

51

6

10

1
1
1
1
2
2
2
2
3
3

092
327
468
712
254
614
534
949
041
349

1
1
1
1
1
1

648
696
699
811
016
102
089
129
184
225

33

14

49

10

7

12

42

0

4

7

30

40

50

14

14
60

12

70

18

80

back to work

100

not working, not retired

other

90

partial disability pension

full disability pension
The Finnish Centre for Pensions

5
Rehabilition programmes finished in 2012
Post status

Pre status:
5 071programmes
78%

Succesfull
programmes

In labour
Market
10%

72 %

74 %
12%
56%

Drawing
pension
15 %

Drawing
pension
26%

30%
14%

Programmes
stopped
13 %
The Finnish Centre for Pensions

6
Rehabilition programmes finished in 2012

5 071 programmes
Total costs 76 million € and 15 000 €/a programme

Succesfull programmes
- back to work
- studying
- in labour market
3 651(72%)

Drawing pension
(incl. partial disability
pension 354 (47%)

Programmes stopped
- became ill
- died
- others

759 (15%)

661 (13%)

Total cost of all finished programmes/number of succesfull
programmes 20 800 € = the average price of a succesfull programme

Average disability pension cost 12 400 €/year
The Finnish Centre for Pensions

7
The price of a succesful programme
in 2003 - 2012
The average price
of a succesful
programme

Average disability
pension cost/year

Succesful
programme/disability
pension

2003

19 440

9 700

2,0

2004

18 000

10 000

1,8

2005

17 000

10 000

1,7

2006

16 500

10 400

1,6

2007

16 400

10 600

1,5

2008

16 400

10 400

1,6

2009

17 200

11 100

1,6

2010

19 000

11 600

1,6

2011

19 400

12 100

1,6

2012

20 800

12 400

1,7

The Finnish Centre for Pensions

8
Follow-up of those ending their rehabilitation
in 2008, based on rehabilitation background

100%
90%
80%

All
14

14

70%
60%

14

From work
6
15

17

19

10

13

16

12

15

14

24

15
15

15

12

From retirement

16

10
11

11

27

12
10

14

12
22

17

40%
67
59

55

51

20%

62

59

50

30

14

50%

30%

29

16

15

16

16

57
39

39

36

34

2008

2009

2010

2011

10%
0%

2008

2009

2010

2011

2008

2009

2010

2011

working

working while retired

not working, not retid

partial disability

full disability pension

other pension

deceased
The Finnish Centre for Pensions

9
Follow-up of those ending their rehabilitation
in 2008, based on age

100%
90%
80%

All
14

14

70%
60%

14

Under 45
15

9
17

9

13

16

12

10

11

13

19
17

15

45 and over

15

18

8

6

19

18

21

23

12

18

13
6

6

14

17

13

16

12

15

50%

15

40%
30%

59

65
55

51

2011

63

63

55

50

2010

64

20%

50

45

43

2010

2011

10%
0%

2008

2009

2008

2009

2010

2011

2008

working

working while retired

not working, not retired

partial disability

full disability pension

2009

other pension

deceased
The Finnish Centre for Pensions

10
Follow-up of those ending their rehabilitation
in 2008, based on gender
All

Men

Women

100%
90%
80%

14

14

70%
60%

14

15

15

13

17

15
19

9
18

21

22

13

12

18
15

12

11

18

10

50%

18

10

16

11
13

16

14

14

16
15

15

14

14

14

9

40%
30%

59

55

62
51

50

2010

2011

20%

54

51

48

2008

2009

2010

2011

58

48

54

51

2010

2011

10%
0%

2008

2009

2008

2009

working

working while retired

not working or retired

partial disability

full disability pension

other pension

deceased
The Finnish Centre for Pensions

11
Follow-up of those ending their rehabilitation
in 2008, based on diagnosis

100%
90%
80%

All
14

14

70%
60%

14

Mental health
15

15
13

17

15
19

17

11
19

14
15

15

17

17
12

16

12

50%

15

13

22

13
16

Musc.skel.
diseases

17

12

14
12

15

15
12

Other diseases
12
17

16

18

19

15

14

11

11

50

49

15
16

14
14
12

11

13

40%
30%
20%

59

55

51

50

55

61
49

47

58

54

44

53

57

53

10%
0%

2008 2009 2010 2011

2008 2009 2010 2011

2008 2009 2010 2011

working

working while retired

not working, not retired

partial disability

full disability pension

2008 2009 2010 2011

other pension

deceased
The Finnish Centre for Pensions

12
Rehabilitation measures, the use of
distribution (%) between 1992 -2012
100%
90%

80%
70%
60%
50%
40%
30%
20%
10%
0%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011

Evaluation

Work place

Education

Other

The Finnish Centre for Pensions

13

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Economic Profitability of Vocational Rehabilitation within the Finnish Statutory Earnings-related Pension Scheme

  • 1. Economic Profitability of Vocational Rehabilitation within the Finnish Statutory Earnings-related Pension Scheme Mikko Pellinen 12.EFRR/13.9.2013/Istanbul
  • 2. Persons who received vocational rehabilitation in 1992 - 2012 12,000 11,138 10,808 10,000 9,715 9,081 8,521 7,955 8,000 7,409 6,834 6,257 6,000 5,202 4,617 5,548 4,969 3,879 4,000 2,665 2,836 2,169 2,000 541 716 1,045 1,309 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 The Finnish Centre for Pensions 2
  • 3. Total costs of vocational rehabilitation in 1992 - 2012 Milj. € 100 93 90 82 80 70 70 63 60 54 49 50 40 40 27 30 17 20 10 0 2 4 5 6 9 11 21 31 44 36 24 14 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Rehabilition services Rehabilitation allowance The Finnish Centre for Pensions 3
  • 4. Rehabilitation programs which ended in 2003 – 2012 estimated results 6 50 2003 57 Programmes: 15 7 14 6 2 023 16 2004 2 167 2005 2 523 2006 3 270 2007 3 716 2008 3 695 2009 4 078 2010 4 225 2011 4 575 13 2012 64 0 10 20 30 8 63 40 50 60 70 13 80 back to work 90 8 5 084 100 not working, not retired other 7 partial disability full disability pension The Finnish Centre for Pensions 4
  • 5. Rehabilitation programs which ended in 2003 -2012 estimated results Rehabilitation background: Programmes: Not retired 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Retired 67 65 1714 8 70 8 12 69 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 39 5 13 20 51 6 10 1 1 1 1 2 2 2 2 3 3 092 327 468 712 254 614 534 949 041 349 1 1 1 1 1 1 648 696 699 811 016 102 089 129 184 225 33 14 49 10 7 12 42 0 4 7 30 40 50 14 14 60 12 70 18 80 back to work 100 not working, not retired other 90 partial disability pension full disability pension The Finnish Centre for Pensions 5
  • 6. Rehabilition programmes finished in 2012 Post status Pre status: 5 071programmes 78% Succesfull programmes In labour Market 10% 72 % 74 % 12% 56% Drawing pension 15 % Drawing pension 26% 30% 14% Programmes stopped 13 % The Finnish Centre for Pensions 6
  • 7. Rehabilition programmes finished in 2012 5 071 programmes Total costs 76 million € and 15 000 €/a programme Succesfull programmes - back to work - studying - in labour market 3 651(72%) Drawing pension (incl. partial disability pension 354 (47%) Programmes stopped - became ill - died - others 759 (15%) 661 (13%) Total cost of all finished programmes/number of succesfull programmes 20 800 € = the average price of a succesfull programme Average disability pension cost 12 400 €/year The Finnish Centre for Pensions 7
  • 8. The price of a succesful programme in 2003 - 2012 The average price of a succesful programme Average disability pension cost/year Succesful programme/disability pension 2003 19 440 9 700 2,0 2004 18 000 10 000 1,8 2005 17 000 10 000 1,7 2006 16 500 10 400 1,6 2007 16 400 10 600 1,5 2008 16 400 10 400 1,6 2009 17 200 11 100 1,6 2010 19 000 11 600 1,6 2011 19 400 12 100 1,6 2012 20 800 12 400 1,7 The Finnish Centre for Pensions 8
  • 9. Follow-up of those ending their rehabilitation in 2008, based on rehabilitation background 100% 90% 80% All 14 14 70% 60% 14 From work 6 15 17 19 10 13 16 12 15 14 24 15 15 15 12 From retirement 16 10 11 11 27 12 10 14 12 22 17 40% 67 59 55 51 20% 62 59 50 30 14 50% 30% 29 16 15 16 16 57 39 39 36 34 2008 2009 2010 2011 10% 0% 2008 2009 2010 2011 2008 2009 2010 2011 working working while retired not working, not retid partial disability full disability pension other pension deceased The Finnish Centre for Pensions 9
  • 10. Follow-up of those ending their rehabilitation in 2008, based on age 100% 90% 80% All 14 14 70% 60% 14 Under 45 15 9 17 9 13 16 12 10 11 13 19 17 15 45 and over 15 18 8 6 19 18 21 23 12 18 13 6 6 14 17 13 16 12 15 50% 15 40% 30% 59 65 55 51 2011 63 63 55 50 2010 64 20% 50 45 43 2010 2011 10% 0% 2008 2009 2008 2009 2010 2011 2008 working working while retired not working, not retired partial disability full disability pension 2009 other pension deceased The Finnish Centre for Pensions 10
  • 11. Follow-up of those ending their rehabilitation in 2008, based on gender All Men Women 100% 90% 80% 14 14 70% 60% 14 15 15 13 17 15 19 9 18 21 22 13 12 18 15 12 11 18 10 50% 18 10 16 11 13 16 14 14 16 15 15 14 14 14 9 40% 30% 59 55 62 51 50 2010 2011 20% 54 51 48 2008 2009 2010 2011 58 48 54 51 2010 2011 10% 0% 2008 2009 2008 2009 working working while retired not working or retired partial disability full disability pension other pension deceased The Finnish Centre for Pensions 11
  • 12. Follow-up of those ending their rehabilitation in 2008, based on diagnosis 100% 90% 80% All 14 14 70% 60% 14 Mental health 15 15 13 17 15 19 17 11 19 14 15 15 17 17 12 16 12 50% 15 13 22 13 16 Musc.skel. diseases 17 12 14 12 15 15 12 Other diseases 12 17 16 18 19 15 14 11 11 50 49 15 16 14 14 12 11 13 40% 30% 20% 59 55 51 50 55 61 49 47 58 54 44 53 57 53 10% 0% 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 working working while retired not working, not retired partial disability full disability pension 2008 2009 2010 2011 other pension deceased The Finnish Centre for Pensions 12
  • 13. Rehabilitation measures, the use of distribution (%) between 1992 -2012 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 Evaluation Work place Education Other The Finnish Centre for Pensions 13