Contributions to Raise Pensions in Latvia to Be Payable in Instalments

People in Latvia who cannot immediately pay the full contribution needed to increase their pension will be able to pay it in stages. Andris Bērziņš, chair of the Saeima's (Latvia's parliament) Social and Employment Matters Committee and a member of the Greens and Farmers Union (ZZS), explained this on the TV24 programme “Uz līnijas”. According to him, the arrangement will also cover people who have already retired and will be entitled to make such contributions.

Payment schedule

Asked what to do for those who currently lack the money for a contribution, Bērziņš gave an example. If a person is 60 and has five years left until retirement age, the required sum could be paid gradually. A special schedule would be drawn up, and payments could be split into monthly or half-yearly instalments.

The committee chair stressed that the solution is intended also for those already retired who will have the right to make the relevant contributions. They, too, will be able to pay the necessary amount in parts.

Condition and indexation

Bērziņš pointed to one condition: if contributions are made gradually, whatever has been paid in is added to the pension. He explained that the corresponding pension increase would be indexed while the full amount is being paid off.

Bērziņš also clarified that this concerns specific groups of pensioners who will be entitled to make these contributions and thus to have their pensions raised. The source does not specify which groups are meant.