Several categories might be excluded from service pension system as of 2027

RIGA - From 2027, there might be several categories of jobs that would no longer be included in the service pension system, Prime Minister Evika Silina (New Unity) told journalists today after a meeting of the Thematic Committee on Strategic Management.

She pointed out that the political discussion on how the long-standing unchanged service pension system could be reorganized was still ongoing. Silina also noted that in many sectors that are currently entitled to service pensions, salaries have increased in recent years, but there have been no changes in the way service pensions are paid.

The Prime Minister stressed that a way must be found to make the service pension system more equitable in relation to the rest of the Latvian population who are and should be entitled to retirement pensions. For example, according to Silina, the current level of old-age pensions is on average 40 percent of the wage, while for recipients of service pensions it is on average 80-90 percent.

Silina pointed out that there should be a discussion on which sectors should retain the long service pension system and which should seek other solutions, for example by increasing existing salaries or special risk bonuses.

The Prime Minister also stressed that the changes would not apply to those recipients of service pensions already in the system. "Nothing will be taken away from them," Silina promised. At the same time, from 2027, there could be categories that would no longer qualify for service pensions.

However, she stressed that this is still only an initial discussion - these issues need to be discussed at government level and with trade unions and government partners. The regulation of certain professions, such as judges, is a matter for the parliament.

Peteris Vilks, Deputy Director for National Development and Inter-sectoral Governance at the State Chancellery, explained that one of the most important criteria for maintaining a service pension for a sector could be the risk to life and health. This means that institutions will have to assess which jobs are associated with such risks.

As reported, Finance Minister Arvils Aseradens (New Unity) announced in early May that he would propose raising the service pension age this year.

As Aseradens explained, the retirement pension age in Latvia has been increased by five years in recent years, to 65 years, but the age of service pension has not been changed.

Politicians have been trying to raise the issue of reforms to the service pension system for years, but no changes have been made, mainly due to the active opposition of employees in the sectors involved and fears of people leaving these jobs.