Saeima approves voluntary contributions to count 1991–1995 study and care periods toward pensions
Latvia's parliament, the Saeima, passed in the final reading amendments to the law on state social insurance. They allow voluntary contributions to count certain study, child-rearing and caregiving periods from 1991 to 1995 toward pension service record. Contributions can be made from 1 October 2027.
Members of the Saeima, Latvia's parliament, on Thursday adopted in the final reading amendments to the law "On State Social Insurance". They will let people use voluntary contributions to add certain periods spent in Latvia between 1991 and 1995 to their pension and unemployment insurance record. The periods cover study, child-rearing and care of other people, and the change may affect both pensions already granted and those not yet awarded.
Which periods qualify
Contributions may be made for study at Latvian higher education institutions and other schools after secondary education, as well as for postgraduate education and qualification upgrading in Latvia. They will also be possible for time spent in Latvia caring for a person with a first-group disability, a child with a disability under 16, or a person aged 80 or older. A mother who raised a child in Latvia up to the age of eight can do the same.
The period must fall between 1 January 1991 and 31 December 1995, be proven in line with the law "On State Pensions" and not overlap with another social insurance period. The rules apply only to periods accrued in Latvia.
How much must be paid
For each month of the period, a person must pay 1% of the minimum monthly wage in force in the year the contribution is made. The Ministry of Welfare says tying the amount to that wage is justified by administrative simplicity, equal treatment and the need for an economically adequate contribution value. The ministry notes that minimum wages in 1991–1995 reflected the economic conditions and purchasing power of the time, and using them would ignore inflation and the substantial rise in pay since then.
Effect on pensions and deadlines
People who already receive a pension will have it recalculated for the future once they make contributions. For those whose pension has not yet been granted, these periods will be taken into account when it is awarded.
The regulation takes effect on 1 July 2027, while contributions can be made from 1 October 2027. By 30 June of next year, the Cabinet of Ministers must issue rules on required documents, obtaining information and making contributions. They must also set deadlines and the procedure by which the State Social Insurance Agency (VSAA) reviews documents and calculates and registers contributions.
