Latvia and Estonia to close pension loophole

  • 2006-09-20
  • From wire reports
RIGA - Latvia and Estonia have announced an agreement to change their pension systems, thereby restricting a person from receiving "double pensions" from both countries, the Latvian Welfare Ministry reported on Sept. 14.

Under the current system, if a person worked in Soviet Estonia and Latvia, he can earn a pension from each government.
The current agreement proposes that the country where the person worked the longest pays his insurance and pension costs. If the person worked for an equal amount of time in both countries, the pension comes from the last country he worked in.
The Latvian government is also planning a similar agreement with Lithuania in the near future.