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Tuesday 19.06.2018 | Name days: Nils, Viktors
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Amendments proposed to allow pensioners to receive pension from their dead spouse

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn 6 March, Latvian Association of Regions submitted amendments to the Law on State Pensions and Law on State Funded Pensions. These amendments provide that pensioners who outlive their spouse are to be paid 50% of their pension capital.

The reason behind this proposal is providing additional financial support to pensioners.

Proposed amendments cover two laws at once – the Law on State Pensions and Law of State Funded Pensions – to make sure this rule applies to all pensioners: the ones paid 1st level pensions and those who are paid 1st and 2nd level pensions (there are such people – born after 1951). The right to receive support is to be given to the surviving spouse if marriage was registered at least five years prior to the life partner’s death and if the State Social Insurance Agency had received a request for the surviving spouse within two years after their partner’s death.

Amendments to the Law on State Pensions state that pensions can be recalculated and increased for pensioners after the death of their spouse, taking into account the pension capital saved up on their account. It should be added that these changes for this specific law do not apply to state funded pension capital.

Edvards Smiltēns, board member of Latvian Association of Regions, says: «Unfortunately, when one of two married pensioners dies in our country, the financial state of their spouse worsens dramatically. Pensioners are paid very small pensions. This is especially true for people paid 1st level pensions – they have to afford living expenses on their own – rent, utilities, land and real estate tax, etc. Those are very large expenses, whereas the average pension in our country is only slightly above EUR 300 – not nearly enough to afford comfortable life in retirement.»

He adds that if the deceased had a lifetime pension insurance plan, they could freely pick a person who would be paid the remaining amount after their death. In this case the pension is not added to the state budget. Amendments would apply to the funded pension capital amount only if it is also part of the non-funded pension capital.

«If the pensioner decides to continue working, funded pension capital for their 2nd pension level will increase and be added to the non-funded pension capital. This is why changes provided that funded pension capital is added with part of the non-funded pension capital that was saved up not only before retirement age, but also all the way until the 2nd level pensioner’s death. Pension amount is to be added to the surviving spouse’s capital based on their request,» said Edvards Smiltēns.


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