The fund’s governing bodies are the fund’s AGM and Board.
The unemployment fund’s highest power of decision is exercised by the fund’s member’s AGM. The fund’s Board decides the time and place of the meeting.
Each representative present at a meeting of the fund has one vote. In the event of a tie the matter is decided by drawing lots, though in other matters the chairman has the casting vote.
The unemployment fund’s AGM is held each year no later than the end of May on a date and in a place decided upon by the Board.
At the AGM:
- the Board’s annual report and auditors’ report for the previous year is presented
- the financial statements for the previous year are approved
- any necessary administrative or accounting action as well as the processing of the results for the accounting period are decided upon
- the granting of discharge of liability is decided
- the fees of members of the administrative bodies and auditors are decided
- the Chairman of the Board, its members and their personal deputy members as well as the auditors are elected. A KHT (Finnish Institute of Authorised Public Accountants) or HTM (Registered Association of Certified Auditors)organisation and one KHT or HTM auditor are elected. No deputy auditors are elected
- the criteria for the membership fee are determined
- the principles underlying investment are decided
- other matters advised for discussion in the notice to attend the meeting are dealt with.
Matters other than those mentioned above may not be finally decided at the meeting.
Extraordinary meeting of the fund
An extraordinary meeting of the fund must be held if:
- the fund’s Board considers it necessary
- it is required by the Financial Supervisory Authority or by the auditors if the audit they have performed gives cause for one to be held
- it is requested in writing by at least one tenth of the members to deal with a specific matter.
If the fund’s Board refuses to convene a meeting of the fund for no legitimate reason, the FSA must send out a notice.
The notice to attend must advise the matters to be dealt with. Matters other than those mentioned in the notice to attend may not be finally decided at the meeting.
If the number of members of the fund falls below 8,000, an extraordinary meeting of the fund must be notified immediately to decide if the work of the fund should continue or not, and what measures need to be taken in such an event.
The fund’s Board consists of a chairman and 12 regular members, with 12 personal deputy members, who must be members of the fund and have reached the age of 18. The chairman’s and members’ term is three years, though the system dictates that each year one third of the members must retire from the board.
The Board elects a deputy chairman from among its members.
The Board may elect a working committee whose tasks it specifies separately.
Work of the Board
The Board meets when the chairman, or deputy chairman when he/she is prevented, sends out a notice to attend. The Board has a quorum when the chairman or deputy chairman and at least 6 members are present.
A decision of the Board is based on the majority opinion. In the event of a tie the matter is decided by drawing lots, though in other matters the chairman has the casting vote. However, when making decisions on the investment of funds a qualified majority of two thirds is required.
The Board meeting must keep minutes which must be examined by no later than the following Board meeting.
Duties of the Board
It is the Board’s task:
- to call meetings of the fund at least 2 weeks beforehand in a newsletter circulated among the members
- to ensure that the fund’s affairs are dealt with according to the law, authoritative regulations, the rules of the fund, and the decisions taken at meetings of the fund
- to decide how to invest the fund’s money lucratively and safely in accordance with the principles adopted at a meeting of the fund
- to determine the principles that underlie payment of allowances
- to employ and dismiss the fund’s manager and decide on his/her terms and conditions of employment
- to supervise the keeping of the register of members
- to ensure that the fund’s accounts are in accordance with the law, good practice and the fund’s practices
- to issue a written statement at the meeting of the fund on the proposals that auditors or members of the fund wish to bring before the meeting
- to produce an annual report, profit and loss account, and balance sheet and give them to the auditors no later than a month before the meeting of the fund at which the matter of the approval of the financial statements is to be discussed. The report must contain a proposal by the Board regarding what to do about any surplus or deficit
- to produce a budget for the following year and decide and make a proposal each year to the Financial Supervisory Authority on the amount of the membership fee
- each year to send the ISO an application for financing contributions as referred to in the Unemployment Funds Act
- to decide whether to take out a loan as described in section 20
- if necessary to give authorisation to sign for the company
- to decide on all other matters that are not otherwise provided for in the law or these rules
- to decide on all other matters that are not otherwise provided for in the law, degrees, authoritative regulations or these rules.
Fund manager and his/her duties
The person officially responsible for the fund is the fund manager. It is the fund manager’s task:
- to oversee the payment of benefits
- to prepare matters for discussion at Board meetings and implement the decisions of the Board
- to be responsible for the fund’s office, management of finances, cash flow and accounts
- to make remarks and issue warnings in the situations referred to in section 4, paragraphs 1-2
- to take on and expel members of the fund
- to represent the fund and exercise its right to be heard in court and before other authorities
- to employ and dismiss staff and decide on the terms and conditions of their employment
- to discharge any other duties as instructed by the Board
Signing for the fund
The chairman of the Board or the fund manager or any other person specially authorised by the Board for the task are entitled to sign for the fund.
The fund manager decides upon the rights to sign for the fund necessary for dealing with the benefits referred to in section 1, paragraph 3 of these rules, the decisions taken and applications for write-off.
In the case of debt obligations, however, the chairman of the Board or fund manager plus one other Board member need to sign for the fund together.
When a decision on an unemployment allowance is given electronically, the document can also be signed electronically.
Notices to attend meetings and information for members
Notices to attend meetings and other information for members concerning the fund are published in one or more newsletters circulated among the members or are brought to the attention of members in some other manner decided by the Board at least 2 weeks before the proper due date.
The Board’s annual report, financial statements and auditors’ report with its opinions must be available to the members of the fund to view in the fund’s office at least a week before the fund’s AGM.
Taking out loans
The fund’s Board has the right to take out temporary loans for the payment of the benefits referred to in these rules only when there are not the funds available.
The unemployment fund’s accounting period is one calendar year.
The financial statements, which consist of the profit and loss account, balance sheet, attachments and annual report must be ready no later than March 31.
The unemployment fund’s fund is an equalisation fund, where the annual surplus is transferred to the equalisation fund.
Covering a deficit
If the financial statements show a deficit, a maximum of 50% of the equalisation fund can be used to cover it.
If the deficit cannot be covered this way, it is covered using the assets of the unemployment fund’s backup fund and state assets in the form of an additional contribution in the manner described in sections 21 and 22 of the Unemployment Funds Act.