Fund rules

I THE FUND’S SECTOR

Section 1

Name, domicile, operating area and purpose of the fund

The name of the fund is Opetus ja tiede työttömyyskassa /
Unemployment Fund for Education and Research, and it is domiciled in the city
of Helsinki.

The fund’s operating area is nationwide.

The fund is a mutual liability organisation whose purpose is
to pay earnings-related allowances as referred to in the Act on Unemployment
Security and other statutory benefits within the fund’s sector for its members
in accordance with current legislation.

The payment of the benefits that the fund is responsible
for, as well as application and payment, are provided for in the relevant
legislation.

The activities of the unemployment fund are supervised by
the Financial Supervisory Authority (FIN-FSA).

* On 13 June 2022, the Financial Supervisory Authority
has also confirmed the new name of the fund, which will not be introduced until
01 January 2023.

II  MEMBERSHIP

Section 2

Membership

Becoming a member of the fund is possible for anyone aged
under 68 who is a paid employee under the purview of the Act on Unemployment
Security and who

– works in the field of education, teaching, psychology or
research; or

– has completed a higher education degree or an
equivalent education; or

– has been admitted to higher education degree studies
and is simultaneously engaged in paid employment relating to their field of
study; or

– has completed a scientific, artistic or professional
postgraduate degree or an equivalent education, or has been admitted to such
studies and is simultaneously engaged in paid employment; or

– is engaged in development or advocacy work in the field of
education, teaching, psychology or research.

Membership of the fund starts from the day on which the
person has paid the membership fee, but no earlier than on the day on which
they have applied for fund membership in writing.

A fund member may not simultaneously be a member of another
unemployment fund.

Section 3

Applying for membership

A written application to join the fund must be submitted to
either the fund’s Board of Directors, a representative authorised by the Board,
the Head of the Unemployment Fund, or a person responsible for membership
matters.

Members are accepted to the unemployment fund by the Board,
the Head of the Unemployment Fund, or a representative of the fund authorised
by the Board.

Section 4

Resigning from the fund

If a member wishes to resign from the fund, they must
notify, in writing, the fund’s Board, a representative appointed by the Board,
the Head of the Unemployment Fund, or a person responsible for membership
matters.

Membership of the unemployment fund expires by the end of
the calendar month in which the member reaches the age of 68.

Section 5

Notice, warning and expulsion from the fund

Having consulted the member concerned, the fund’s Board or,
with authorisation from the Board, the Head of the Unemployment Fund or an
employee of the fund can issue a notice or warning or expel a member who

1) has provided false or misleading information upon joining
the fund;

2) has fraudulently stated or concealed something that
affects entitlement to an allowance or other benefit for which the fund is
responsible, or its amount; or

3) refuses to abide by the rules of the unemployment fund.

If a member fails to pay membership fees for a period of
more than six (6) months, the member will be expelled from the date on which
the fees became outstanding. The expulsion decision is made by the Head of the
Unemployment Fund.

The unemployment fund may terminate the membership of a
member who has permanently left the profession or sector that falls within the
fund’s scope.  The expulsion decision is
made by the unemployment fund’s Board or, with authorisation from the Board,
the Head of the Unemployment Fund or an employee of the fund.

A member who has become a full-time entrepreneur under the
Unemployment Security Act may keep their unemployment fund membership for up to
18 months from the start date of business activities. After this, the member is
considered to have permanently left the profession or sector that falls within
the fund’s scope and can therefore be expelled from the fund. The expulsion
decision is made by the Head of the Unemployment Fund or an employee of the
fund, with authorisation from the Board.

Section 6

Rejoining the fund

If a member joins another unemployment fund within one month
after leaving this fund, the member will be given credit for their employment
history and duration of their previous unemployment fund membership as stated
in the Unemployment Security Act and the Unemployment Funds Act.

If an expelled member is re-admitted to the fund, the member
will not be given credit for their previous employment history, the duration of
the previous unemployment fund membership, or the membership fee payments made
previously. This also applies to a member who has been expelled from another
fund and is accepted to this unemployment fund as a new member.

Section 7

Membership fees

The membership fee is a euro amount fixed annually by the
Financial Supervisory Authority and paid on a monthly basis.

The membership fee must be paid in the manner specified by
the Board within six (6) months from the beginning of the period to which the
fee applies.

Membership fees cannot be waived during membership.

If a person joins the unemployment fund, resigns, or is
expelled from the fund in the middle of a calendar month, the membership fee
must be paid for the entire calendar month.

A member who has resigned or has been expelled is not
entitled to any reimbursement of membership fees paid to the fund that apply to
the membership period preceding resignation or expulsion.

Refunds for membership fees paid for a period during which
the person was not a member can be made at the person’s written request. The
request must be submitted to the fund within three (3) months of the date of
resignation or final expulsion decision.

Any membership fee arrears may be deducted from the
allowance paid.

 

III  ADMINISTRATION OF
THE FUND

Section 8

Governing bodies

The governing bodies of the unemployment fund are the fund’s
general meeting, Board of Directors and working committee.

Section 9

General meeting of the fund

The highest power of decision in the unemployment fund is
exercised by the fund’s general meeting. The general meeting is convened by the
Board of Directors.

The general meeting of the unemployment fund is held every
year by the end of May. The Board decides the date and place.

The notice to convene the general meeting of the fund must
be published on the fund’s website or in some other manner decided by the Board
no less than two weeks before the meeting.

If the Board so decides, participation in the general
meeting by telecommunications connections or other technical means is allowed,
as stipulated in the Unemployment Funds Act.

Each fund member present at the fund meeting has one vote.
In the event of a tie, the matter is decided by drawing lots, but in other
matters, the decision will be the opinion of the chair of the meeting.

Changing the rules of the fund or dissolution of the fund
require a decision taken at the fund’s meeting by at least a two-thirds
majority.

Section 10

Tasks of the fund’s general meeting

The general meeting of the unemployment fund

1) presents the Board’s annual report, profit and loss
account, balance sheet and auditors’ report for the previous term;

2) confirms the financial statements for the previous year;

3) decides on the allocation of the profit for the
accounting period;

4) decides on granting discharge from liability;

5) decides on the fees paid to board members and auditors;

6) elects the members of the Board and their personal deputy
members to replace those who are due to retire from the Board;

7) elects two auditors and two deputy auditors in accordance
with the provisions of the Unemployment Funds Act; 

8) determines the basis of the membership fee;

9) determines the division of the fund’s operating area into
representative districts;

10) decides on investment principles; and

11) discusses any other matters listed in the notice of
meeting.

Matters other than those mentioned above may not be finally
decided at the meeting.

 

Section 11

Extraordinary meeting of the fund

An extraordinary meeting of the fund must be held if:

1) the fund’s Board considers it necessary;

2) 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; or

3) it is requested in writing by at least one tenth of the
members to discuss a specific matter.

If the fund’s Board refuses to convene a meeting of the fund
for no legitimate reason, the Financial Supervisory Authority must send out the
notice of the meeting. The notice to convene the meeting must specify the
matters to be discussed. Matters other than those mentioned in the notice of
meeting may not be finally decided at the meeting.

 

Section 12

Fund’s Board

The fund’s general meeting elects nine members for the Board
and a personal deputy for each. The Board elects a chair and deputy chair from
among its members. The chair and members of the Board must be 18 years of age
or older and meet the eligibility criteria specified in the Unemployment Funds
Act.

Members and deputy members of the Board must be members of
the unemployment fund.

In the event of a tie in the election of the chair and
deputy chair of the Board and the member of the Board for the working
committee, the matter is decided by drawing lots.

The term of office of board members is two years. In odd
calendar years, five members and their personal deputies must retire from the
Board; in even calendar years, four members and their personal deputies must
retire from the Board.

If the office of a Board member becomes vacant in the middle
of the term or a Board member loses their eligibility for the office in the
middle of the term, the deputy member takes over the duties of the member until
the general meeting of the fund elects a new member for the Board.

Section 13

Activities of the Board

The Board is convened by the chair or, if the chair is
prevented, by the deputy chair.

The Board has a quorum when the chair of the meeting and at
least four members are present.

The opinion of the majority of the Board will be the
decision of the Board. In the event of a tie, the decision will be the opinion
of the chair of the meeting, unless otherwise provided for in Section 12.

The Board meeting must keep minutes which must be reviewed
no later than at the following Board meeting.

Section 14

Duties of the Board

The duties of the Board are to:

1) ensure that the fund’s affairs are managed responsibly
and in accordance with the law, the rules of the fund and the decisions taken
and guidelines confirmed at meetings of the fund;

2) accept and expel members of the fund, taking into account
what is specified in Sections 5, 16 and 18 on receiving membership
applications, acceptance of new members and expulsion from the fund. The Board
may authorise a representative of the fund or the Head of the Unemployment Fund
to decide on expulsion in cases where a member has permanently left a
profession or sector within the fund’s scope. In case of failure to pay
membership fees, the expulsion decision is made by the Head of the Unemployment
Fund;

3) accept the fund’s investment plan and decide how the
fund’s assets are invested;

4) have the fund’s loan documents, securities and financial
assets audited at least twice a year, and to generally supervise the fund’s
management;

5) decide on the principles followed in the payment of
benefits;

6) employ and dismiss the Head of the Unemployment Fund and
decide on the salary and duties;

7) 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;

8) prepare the financial statements and annual report and
submit them to the auditors no later than one month before the meeting of the
fund at which the confirmation of the financial statements is to be handled.
The annual report must contain a proposal by the Board on the measures to be
taken regarding any surplus or deficit;

9) prepare a budget for the following year;

10) submit an application each year to the Ministry of
Social Affairs and Health on financing contributions as referred to in the
Unemployment Funds Act;

11) make a proposal each year to the Financial Supervisory
Authority on the amount of the membership fee;

12) decide on taking out loans as referred to in Section 19;

13) give authorisation to sign on behalf of the unemployment
fund as needed;

14) represent the fund and exercise its right to speak in
court and before other authorities. The Board may authorise an employee of the
fund to represent the fund and exercise its right to speak in court and before
other authorities;

15) ensure that the unemployment fund has sufficient
internal control and risk management systems in place, considering the quality
and extent of its operations;

16) decide on all other matters that are not otherwise
provided for in the law, decrees or these rules.

The Board has the right to make technical amendments to the
rules of the unemployment fund to reflect changes in legislation.

 

Section 15

Working committee

The chair of the Board, the deputy chair and one member
elected by the Board from among themselves act as the working committee of the
Board.

The working committee’s chair is the chair of the Board or,
if the chair is prevented or has a conflict of interest, the deputy chair. The
working committee is convened by the chair or, if the chair is prevented or has
a conflict of interest, the deputy chair.

The working committee has a quorum when the chair of the
meeting and at least one other member are present.

The term of office of the working committee is one year.

The duties of the working committee are to

1) prepare matters for discussion at Board meetings;

2) decide on the fund’s employment contract policies, employ
and dismiss employees who are in non-fixed-term employment relationships,
excluding the Head of the Unemployment Fund, and to employ and dismiss
employees who are in fixed-term employment relationships of over 12 months and
to decide on their salary and duties;

3) discharge any other duties as instructed by the Board.

Section 16

Duties of the Head of the Unemployment Fund

The employee officially responsible for the fund is the Head
of the Unemployment Fund. The Head of the Unemployment Fund must meet the
eligibility criteria specified in the Unemployment Funds Act.

The duties of the Head of the Unemployment Fund are to:

1) ensure that the fund’s monetary assets and accounts are
handled appropriately;

2) ensure that each year’s financial statements and annual
report are discussed in the meeting of the Board;

3) guide and monitor the payment of benefits;

4) prepare matters for discussion at Board meetings and
working committee meetings, present matters at meetings and execute the
decisions taken at the meetings;

5) accept members to the unemployment fund with
authorisation from the Board;

6) dismiss members, with authorisation from the Board, as
provided for in Section 5 of these Rules,

7) employ and dismiss employees in fixed-term employment
relationships lasting no more than twelve (12) moths and decide on their salary
and duties;

8) decide on releasing an employee from their duties for a
fixed period, such as family leave or other similar statutory leave; and

9) discharge any other duties as instructed by the Board or
the Rules of the Unemployment Fund.

 

Section 17

Signing for the fund

The chair of the Board, the Head of the Unemployment Fund or
any other person authorised by the Board are entitled to sign on behalf of the
fund.

In case of debt obligations, however, the chair of the Board
or the Head of the Unemployment Fund plus one other Board member must sign for
the fund together.

Decisions of the unemployment fund can be signed
electronically.

 

Section 18

Representative districts of the fund

The fund’s Board divides the fund’s operating area into
representative districts on the basis of criteria decided at the fund’s meeting
and, if necessary, appoints representatives for the districts.

The task of the representatives is to receive membership
applications and accept new members. The task of the representatives is further
to assist the members in matters related to unemployment security.

 

Section 19

Taking out loans

The fund’s Board has the right to take out temporary loans
for the payment of the unemployment allowances and other benefits within the
fund’s sector only if the required funds are not available.

Section 20

Financial statements

The accounting period of the unemployment fund is one
calendar year.

The financial statements, which consist of the profit and
loss account, balance sheet and annual report, must be ready no later than on
31 March.

The financial statements must be delivered to the auditors
for examination at least one month before the fund meeting.

For each accounting period, the auditors must provide the
Board with a written auditors’ report at least two weeks before the fund
meeting at which the confirmation of the financial statements is to be decided.

Section 21

Reserves

The unemployment fund’s reserve is an equalisation reserve.
The annual surplus is transferred to the equalisation reserve.

Section 22

Covering a deficit

If the financial statements show a deficit, a maximum of 50%
of the equalisation reserve can be used to cover it.

If the deficit cannot be covered in the manner specified
above in paragraph 1, it will be covered using the assets of the support fund
in accordance with the Unemployment Funds Act.

 

IV  SPECIAL PROVISIONS

Section 23

Transfer of assets in the event of dissolution or bankruptcy

After the repayment of any outstanding debts and the
fulfilment of other commitments, the assets of a dissolved or bankrupt
unemployment fund will be transferred to the Employment Fund
(Työllisyysrahasto). The funds transferred to the Employment Fund will be used
to finance the earnings-related component of earnings-related allowances paid
by unemployment funds.

Section 24

Communication to members

The activities of the fund and amendments to
allowance-related legislation are communicated to unemployment fund members on
the fund’s website.