Thursday May 31, Seaima approves amendments to the Law of State Pensions, which provide for the increase of retirement age by three months every year starting from 2014. Retirement age will be increased every year until it reaches 65 years in 2025.

The previous version of the bill provided for the increase of retirement age by three months on January 1 2014 and 2015; after that retirement age was planned to be increased by six months every year starting from 2016 with it reaching 65 years in 2020. However, after reviewing proposals from Harmony Centre, the Saeima commission in charge decided to support their compact method of increasing retirement age. Welfare Ministry also expressed support of this proposal.

The more compact annual increase of retirement age will cost the social budget 210 million LVL.

The bill also provides for the increase of the minimal insurance period up to 15 years, and further increase it to 20 years by 2025. Meanwhile, the minimal insurance period for people who wish to retire early and for parents who brought up five or more children or an invalid child will be 25 years.

By increasing the general retirement age, retirement age for people with right to retire early will also gradually increase. The bill also provides for a right to claim an early retirement without a time limit.

Early retirement opportunities for people who have worked in hazardous environments will be maintained.

At the same time the bill provides that the required insurance period, required for the state to grant pension, will also consist of periods when a person had a paid temporary social job. This is due to the fact that starting from January 1 2012 unemployed people who worked for some time on these jobs become eligible for state pension insurance.

The bill also provides that starting from 2014 bonus fund allocation to age and disability pensions will be the responsibility of the general budget, as opposed to it being the responsibility of the social insurance budget now.

As reported, 57 proposals were presented to the Social and Labour Affairs Committee for the progression of the bill, including proposals that significantly alter the editorial of the original document.

The bill is still expected to be reviewed by the Saeima in the third reading.

Ref: 102.109.109.1394