Šadurskis: Those Who Retired Right After the Covid Period Benefited From the Pension Formula
Former education minister Kārlis Šadurskis said on TV24 that people who retired soon after the pandemic had more favourable pension calculation conditions. Latvia's annual pension indexation also takes place this October, raising pensions by 4.24% to 5.22%.
In Latvia, the size of a pension depends largely on when a person retires. This was stressed on the TV24 programme “Preses klubs” by Kārlis Šadurskis, a professor, member of the “Vienotība” party and former minister of education and science. He said that people who retired shortly after the Covid-19 pandemic benefited from an especially favourable calculation formula.
“Those who retired right after the Covid period gained a lot from the calculation formula. Their pension was immediately several hundred euros higher,” Šadurskis said. He added that pension amounts can differ widely between people.
This October's indexation
The annual pension indexation takes place in October. The Ministry of Welfare told the LETA news agency that pensions, or the parts of them up to €1,589, will be indexed. Depending on length of service, the increase will range from 4.24% to 5.22%. For pensions above €1,589, only that €1,589 portion is indexed.
The index consists of 12-month inflation and a share of the real growth of the insured wage total. Increases by insurance record are:
- up to 29 years: 4.24%;
- 30–39 years: 4.56%;
- 40–44 years: 4.89%;
- 45 years or more: 5.22%.
For example, a €700 pension for someone with up to 29 years of service will rise to €729.68, and with 45 years or more to €736.54.
Supplements for service years accrued before the end of 1995 will be indexed by a factor of 1.0424. A supplement of €1.72 per year will become €1.79, and €2.58 will become €2.69.
Pensions will be indexed in full for politically repressed people, people with first-group disability and Chernobyl nuclear disaster clean-up participants. The same applies to those granted an early old-age pension for childcare, or for raising five or more children.
