Letland
Pensions are granted in accordance with the State Pensions Act.
Since July 2001, a three-tier pension system has been operating in Latvia, encompassing a first level (compulsory state unfunded pension system), second level (state funded pension scheme) and third level (private voluntary pension scheme).
The first pension level involves all social insurance contributors. The contributions are used to fund the old-age pensions of the current generation of retirees.
Participants in the second pension level can choose an investment manager to invest their contributions in the financial markets to accrue savings for the retirement of the specific contributor.
Persons participating in Pensiju sistemas 3. limenis third pension level may accrue additional retirement savings in private pension funds.
Old-age pension
Persons living in Latvia who at the time of retirement have at least ten years’ insurance (work) standing, and who have reached the retirement age, have the right to receive old-age pensions. The current pensionable age for men is 62, and for women 61.5. Men and women with insurance standing of not less than 30 years have the right to receive their old-age pension two years earlier than the state retirement age at the moment they request an early pension; men may not request this earlier than 60 years of age. Early pensions are paid if the pensioner is not working.
Persons with insurance standing of not less than 30 years, who have taken care of five or more children or a disabled child, have the right to request their old-age pensions five years before reaching the age of 62 stipulated by the state. In such cases, all the children must be aged not less than 8. A person deprived of care or custody rights does not have the abovementioned rights.
Loss of breadwinner pension
Residents of Latvia meeting the following criteria have the right to receive a loss of breadwinner pension if the deceased was a socially insured person:
- the children of the deceased, irrespective of whether or not they were supported by the deceased;
- children under 18;
- children irrespective of their age if they became disabled before reaching 18 years of age;
- adopted children;
- members of the deceased person’s family who are incapable of working and were supported by the deceased: brothers, sisters, grandchildren younger than 18 if they do not have parents capable of working;
- brothers, sisters, grandchildren irrespective of age if they became invalids before reaching 18 years of age and they do not have parents capable of working.
The above-mentioned persons are entitled to this pension after 18 years of age if they are daytime (full-time) students at an educational institution and are not older than 24. The total calculated amount of the loss of breadwinner pension may not be less than the state social insurance benefit. The loss of breadwinner pension is granted from the date of the breadwinner’s death providing documents are submitted within 12 months of the breadwinner’s death.
Disability pension
Rights to disability pensions are held by persons with at least three years’ insurance (work) service, who are deemed by the Health and Capacity for Work Expert Physicians’ Committee to be disabled and who have not reached the statutory pensionable age, and for whom the cause of disability is not a workplace accident or an occupational illness. The minimum disability pension is granted if in the five years prior to the grant of the disability pension the person has not been subject to disability insurance.
Disabled persons who have reached the statutory pensionable age receive old-age pension instead of disability pension.
For more information about pensions see the State Social Insurance Agency’s homepage: www.vsaa.lv, or call free of charge the telephone information line: +371 8001015.
