Categories potentially omit eligibility for pension services starting in 2027
Title: Latvia Plans to Revamp Service Pension System, Focusing on Domestic and Regional Investments
The Latvian government is set to make significant changes to its service pension system, with plans to mobilize a portion of the country's €12 billion pension fund assets for domestic and regional investments, primarily in infrastructure and innovation. This move is part of a broader strategy to boost foreign direct investment by nearly €10 billion over the next decade and shape Latvia’s economic future [1].
The proposed changes, announced by Prime Minister Evika Silina of New Unity, aim to address the disparity between old-age pensions and service pensions. While the average old-age pension stands at 40 percent of the wage, recipients of service pensions receive an average of 80-90 percent [2].
The specific job categories that will be affected by these changes are yet to be defined. In many countries, service pensions are often associated with public service or specialized job categories such as military personnel, police officers, firefighters, and other state service employees. However, the exact job categories in Latvia that will be impacted remain unclear [3].
Prime Minister Silina has suggested that a discussion should take place on which sectors should retain the long service pension system and which should seek other solutions. She noted that in many sectors entitled to service pensions, salaries have increased in recent years, but there have been no changes in the way service pensions are paid [4].
Peteris Vilks, Deputy Director for National Development and Inter-sectoral Governance at the State Chancellery, has proposed that one of the most important criteria for maintaining a service pension for a sector could be the risk to life and health [5].
The Finance Minister, Arvils Aseradens (New Unity), has announced his intention to propose raising the service pension age this year [6]. However, he has not mentioned whether this will affect those recipients of service pensions already in the system.
The discussion on reorganizing the service pension system is still ongoing at the government level, involving trade unions and government partners. The Prime Minister made her comments after a meeting of the Thematic Committee on Strategic Management [7].
Silina also emphasized the need for a more equitable service pension system, suggesting that a discussion should take place on which sectors should retain the long service pension system and which should seek other solutions [8].
Regulation of certain professions, such as judges, remains a matter for the parliament [9].
[1] Latvia's Government Strategy to Boost Foreign Direct Investment [2] Average Old-Age and Service Pension Levels in Latvia [3] Job Categories Eligible for Service Pensions in Latvia [4] Prime Minister Evika Silina's Comments on Service Pension Reforms [5] Peteris Vilks' Proposal for Criteria for Maintaining Service Pensions [6] Finance Minister Arvils Aseradens' Proposal to Raise Service Pension Age [7] Meeting of Thematic Committee on Strategic Management [8] Equity in Latvia's Service Pension System: A Discussion Proposed by Prime Minister Silina [9] Parliamentary Regulation of Certain Professions in Latvia
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