Latvia moves to let thousands recalculate pensions for 1991–1995 gap years
A Saeima committee has unanimously backed amendments letting thousands of residents voluntarily make social insurance contributions for 1991–1995, potentially boosting their future pension or unemployment benefit.
Amendments to Latvia's Law on State Social Insurance are heading to parliament that would restore the option for residents to voluntarily make social insurance contributions covering specific periods between January 1, 1991 and December 31, 1995.
Many people were not credited with insurance coverage for years during this period because they were not in paid employment at the time and no contributions were made on their behalf. Since the original deadlines for making such contributions had long expired, there was previously no legal way to retroactively count these years toward insurance tenure.
What the amendments cover
Under the new rules, people would be able to make contributions for periods spent studying at a university or other institution after completing secondary education, pursuing postgraduate studies or professional qualification training, caring for a child up to age eight, or caring for a Group I disabled person, a disabled child under 16, or a person who has reached the age of 80.
A longer insurance record could affect the size of a person's future old-age pension or unemployment benefit.
Committee's assessment
On Wednesday, September 30, the Saeima's Social and Labor Affairs Committee unanimously approved the amendments, which are set to go before parliament this week.
Committee chairman Andris Bērziņš said the issue has been debated for many years as lawmakers sought a way to address unfairness in cases where time devoted to education, raising children or caring for relatives was not fully credited toward insurance tenure. He described the agreed solution as an expression of fairness and respect toward the thousands of residents affected by the issue.
