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Estonia
| Total population (m.): | 1.3 |
| GDP per capita (USD): | 20361 |
Old Age, Disability and Survivors
Regulatory Framework
First law: 1924.
Current laws: 1992 (Old-Age Pensions under Unfavorable Conditions Act), with 1993-1998, 2000-2002, 2005 and 2010 amendments; 1992 (Superannuation Pensions Act); 2000 (State Funeral Benefit Act), with 2001, 2002, 2005, 2006, 2008-10 amendments; 2001 (State Pension Insurance Act), with annual amendments;2004 (Funded Pensions Act, on individual accounts) with annual amendments; and 2004 (Investment Funds Act) with annual amendments.
Type of program: Social insurance and mandatory individual account system.
Current laws: 1992 (Old-Age Pensions under Unfavorable Conditions Act), with 1993-1998, 2000-2002, 2005 and 2010 amendments; 1992 (Superannuation Pensions Act); 2000 (State Funeral Benefit Act), with 2001, 2002, 2005, 2006, 2008-10 amendments; 2001 (State Pension Insurance Act), with annual amendments;2004 (Funded Pensions Act, on individual accounts) with annual amendments; and 2004 (Investment Funds Act) with annual amendments.
Type of program: Social insurance and mandatory individual account system.
Coverage
Social insurance: All persons residing permanently in Estonia; noncitizens residing temporarily in Estonia and legal refugees.
Mandatory individual account: All persons born after December 31, 1982, who are covered by social insurance, including self-employed persons. Voluntary coverage for persons born after December 31, 1941, or before January 1, 1983.
Mandatory individual account: All persons born after December 31, 1982, who are covered by social insurance, including self-employed persons. Voluntary coverage for persons born after December 31, 1941, or before January 1, 1983.
Source of funds
Insured person
Social insurance: None.
Mandatory individual account: 2% of earnings plus an administrative fee.
There are no maximum earnings used to calculate contributions.
Self-employed person
Social insurance: 16% of declared covered earnings.
Mandatory individual account: 4% of declared earnings plus an administrative fee.
Employer
Social insurance: 16% of gross payroll.
There are no maximum earnings used to calculate contributions.
Mandatory individual account: 4% of gross payroll.
There are no maximum earnings used to calculate contributions.
Government
Social insurance: The total cost of national pensions and pension supplements and allowances for some categories of insured persons; and the cost of funeral grants.
Mandatory individual account: None.
Social insurance: None.
Mandatory individual account: 2% of earnings plus an administrative fee.
There are no maximum earnings used to calculate contributions.
Self-employed person
Social insurance: 16% of declared covered earnings.
Mandatory individual account: 4% of declared earnings plus an administrative fee.
Employer
Social insurance: 16% of gross payroll.
There are no maximum earnings used to calculate contributions.
Mandatory individual account: 4% of gross payroll.
There are no maximum earnings used to calculate contributions.
Government
Social insurance: The total cost of national pensions and pension supplements and allowances for some categories of insured persons; and the cost of funeral grants.
Mandatory individual account: None.
Qualifying conditions
Social insurance
Old-age pension: Age 63 with at least 15 years of service (men) or age 61 with at least 15 years of service (women). (The retirement age for women is rising gradually until it reaches age 63 in 2016; the retirement age for men and women will rise gradually from 2017 to 2026 until it reaches age 65.)
Retirement is possible up to five years before the normal retirement age with at least 15 years of service if the insured worked under dangerous or hazardous conditions.
Early pension: Retirement is possible up to three years before the normal retirement age with at least 15 years of service.
Deferred pension: The pension may be deferred. There is no age limit.
National old-age pension: Age 63 and does not qualify for a social insurance old-age pension. Must have resided in Estonia for at least five years before applying for benefits and must not be receiving a pension from any other country.
Pension supplement: The supplement is paid to veterans of the Estonian War of Independence and their widow(er)s; persons assessed with at least a 40% loss of earning capacity as a result of a nuclear test or accident; and veterans of WWII or military personnel.
Disability pension: Aged 25 to 62 with one to 14 years of coverage, depending on age.
The pension is paid for a total disability (100% loss of earning capacity) or partial disability (40% to 99% loss of earning capacity).
The pension is paid for six months; for one, two, three, or five years (renewable periods); or until retirement age, according to the assessed degree of disability.
A medical expert assesses the degree of disability.
National disability pension: The insured must be assessed with a loss of at least 40% of earning capacity, must not qualify for a social insurance disability pension, and must not receive a pension from any other country.
Pension supplement: The supplement is paid to veterans of the Estonian War of Independence and their widow(er)s; persons assessed with at least a 40% loss of earning capacity as a result of a nuclear test or accident; veterans of WWII or military personnel; and certain prisoners of war.
Survivor pension: Survivors must be incapable of gainful activity. Paid to insured persons aged 25 to 62 with one to 14 years of coverage, depending on age.
An eligible spouse must meet one of the following conditions: be in at least the 12th week of pregnancy; nonworking and raising the deceased's child who is younger than age 3; permanently disabled and married to the deceased for at least a year; divorced and permanently incapable of work before the divorce or if the incapacity began in the year immediately after the divorce, must have been married for at least 25 years and reached pensionable age within three years after the divorce; or of pensionable age.
Other eligible survivors include children, stepchildren, siblings, and grandchildren younger than age 18 (age 24 if a full-time student, no limit if disabled); parents or stepparents of pensionable age or with a disability; or a nonemployed guardian raising the deceased's children.
National survivor pension: Paid on the death of the family breadwinner who was not eligible for a social insurance pension. The survivor must not receive a pension from any other country.
Mandatory individual account
Old-age pension: Age 63 with at least 15 years of service (men) or age 61 with at least 15 years of service (women), receiving the social insurance old-age pension, and first contributed to the individual account at least five years before the date of retirement. The retirement age for women is rising gradually until it reaches age 63 in 2016; the retirement age for men and women will rise gradually from 2017 to 2026 until it reaches age 65.
Survivor pension: The pension is paid to survivors named by the deceased; if there are no named survivors, the pension is paid to the deceased's spouse and orphans.
Old-age pension: Age 63 with at least 15 years of service (men) or age 61 with at least 15 years of service (women). (The retirement age for women is rising gradually until it reaches age 63 in 2016; the retirement age for men and women will rise gradually from 2017 to 2026 until it reaches age 65.)
Retirement is possible up to five years before the normal retirement age with at least 15 years of service if the insured worked under dangerous or hazardous conditions.
Early pension: Retirement is possible up to three years before the normal retirement age with at least 15 years of service.
Deferred pension: The pension may be deferred. There is no age limit.
National old-age pension: Age 63 and does not qualify for a social insurance old-age pension. Must have resided in Estonia for at least five years before applying for benefits and must not be receiving a pension from any other country.
Pension supplement: The supplement is paid to veterans of the Estonian War of Independence and their widow(er)s; persons assessed with at least a 40% loss of earning capacity as a result of a nuclear test or accident; and veterans of WWII or military personnel.
Disability pension: Aged 25 to 62 with one to 14 years of coverage, depending on age.
The pension is paid for a total disability (100% loss of earning capacity) or partial disability (40% to 99% loss of earning capacity).
The pension is paid for six months; for one, two, three, or five years (renewable periods); or until retirement age, according to the assessed degree of disability.
A medical expert assesses the degree of disability.
National disability pension: The insured must be assessed with a loss of at least 40% of earning capacity, must not qualify for a social insurance disability pension, and must not receive a pension from any other country.
Pension supplement: The supplement is paid to veterans of the Estonian War of Independence and their widow(er)s; persons assessed with at least a 40% loss of earning capacity as a result of a nuclear test or accident; veterans of WWII or military personnel; and certain prisoners of war.
Survivor pension: Survivors must be incapable of gainful activity. Paid to insured persons aged 25 to 62 with one to 14 years of coverage, depending on age.
An eligible spouse must meet one of the following conditions: be in at least the 12th week of pregnancy; nonworking and raising the deceased's child who is younger than age 3; permanently disabled and married to the deceased for at least a year; divorced and permanently incapable of work before the divorce or if the incapacity began in the year immediately after the divorce, must have been married for at least 25 years and reached pensionable age within three years after the divorce; or of pensionable age.
Other eligible survivors include children, stepchildren, siblings, and grandchildren younger than age 18 (age 24 if a full-time student, no limit if disabled); parents or stepparents of pensionable age or with a disability; or a nonemployed guardian raising the deceased's children.
National survivor pension: Paid on the death of the family breadwinner who was not eligible for a social insurance pension. The survivor must not receive a pension from any other country.
Mandatory individual account
Old-age pension: Age 63 with at least 15 years of service (men) or age 61 with at least 15 years of service (women), receiving the social insurance old-age pension, and first contributed to the individual account at least five years before the date of retirement. The retirement age for women is rising gradually until it reaches age 63 in 2016; the retirement age for men and women will rise gradually from 2017 to 2026 until it reaches age 65.
Survivor pension: The pension is paid to survivors named by the deceased; if there are no named survivors, the pension is paid to the deceased's spouse and orphans.
Cash benefits for insured workers (except permanent disability)
Social insurance
Old-age pension: A monthly flat-rate amount of €114.66 (April 2011) plus a length-of-service component (for years of service up to December 31, 1998) and an insurance component (for those who have paid the social tax since January 1, 1999).
The monthly length-of-service component is €4.34 (April 2011) multiplied by the number of years of service up to December 31, 1998.
The insured component is the sum of annual pension coefficients calculated on the basis of registered Social Tax paid after January 1, 1999 multiplied by €4.34 (April 2011).
Persons receiving an old-age pension may continue working.
Early pension: The pension is reduced by 0.4% for each month before the normal retirement age.
Persons receiving the early pension must cease all gainful activity.
Deferred pension: The pension is increased by 0.9% for each month of deferral.
The minimum monthly old-age pension is equal to the national pension rate of €128.45 (April 2011).
There is no maximum old-age pension.
Benefit adjustment: Benefits are adjusted annually in April according to changes in the consumer price index and the annual increase in social tax contributions.
National old-age pension: The pension is equal to the minimum monthly old-age pension.
The minimum monthly old-age pension is €128.45 (April 2011).
Pension supplement: Veterans of the Estonian War of Independence and their widow(er)s receive 100% of the national pension rate; persons incapacitated for work as a result of a nuclear test or accident and veterans of WWII or military personnel receive 10%.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension is adjusted annually by the Estonian parliament.
Mandatory individual account
Old-age pension: The value of the pension depends on the insured's contributions plus accrued interest. At retirement, the accumulated capital must be used to provide a life annuity or if the pension is less than 25% of the national pension rate, to make programmed withdrawals.
The monthly national pension rate is €128.45 (April 2011).
Old-age pension: A monthly flat-rate amount of €114.66 (April 2011) plus a length-of-service component (for years of service up to December 31, 1998) and an insurance component (for those who have paid the social tax since January 1, 1999).
The monthly length-of-service component is €4.34 (April 2011) multiplied by the number of years of service up to December 31, 1998.
The insured component is the sum of annual pension coefficients calculated on the basis of registered Social Tax paid after January 1, 1999 multiplied by €4.34 (April 2011).
Persons receiving an old-age pension may continue working.
Early pension: The pension is reduced by 0.4% for each month before the normal retirement age.
Persons receiving the early pension must cease all gainful activity.
Deferred pension: The pension is increased by 0.9% for each month of deferral.
The minimum monthly old-age pension is equal to the national pension rate of €128.45 (April 2011).
There is no maximum old-age pension.
Benefit adjustment: Benefits are adjusted annually in April according to changes in the consumer price index and the annual increase in social tax contributions.
National old-age pension: The pension is equal to the minimum monthly old-age pension.
The minimum monthly old-age pension is €128.45 (April 2011).
Pension supplement: Veterans of the Estonian War of Independence and their widow(er)s receive 100% of the national pension rate; persons incapacitated for work as a result of a nuclear test or accident and veterans of WWII or military personnel receive 10%.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension is adjusted annually by the Estonian parliament.
Mandatory individual account
Old-age pension: The value of the pension depends on the insured's contributions plus accrued interest. At retirement, the accumulated capital must be used to provide a life annuity or if the pension is less than 25% of the national pension rate, to make programmed withdrawals.
The monthly national pension rate is €128.45 (April 2011).
Permanent disability benefits for insured workers
Social insurance
Disability pension: The monthly disability pension is the insured's old-age pension or a flat-rate amount of €114.66 (April 2011) plus a length-of-service component based on 30 years of coverage multiplied by the assessed degree of disability, whichever is greater.
The monthly length-of-service component is €4.34 (April 2011) multiplied by the number of years of service up to December 31, 1998.
The minimum monthly disability pension is the national pension rate of €128.45 (April 2011).
There is no maximum disability pension.
Persons receiving a disability pension may continue working.
The disability pension is replaced by an old-age pension at retirement age.
Benefit adjustment: Disability pensions are adjusted annually in April according to changes in the consumer price index and the annual increase in social tax contributions.
National disability pension: A percentage of the monthly national pension rate is paid according to the assessed degree of disability. The monthly national pension rate is €128.45 (April 2011).
Persons receiving the national disability pension may continue working.
Pension supplement: Veterans of the Estonian War of Independence and their widow(er)s receive 100% of the national pension rate; persons incapacitated for work as a result of a nuclear test or accident and veterans of WWII or military personnel receive 10%; and certain prisoners of war receive 20%.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension rate is adjusted annually by the Estonian parliament.
Disability pension: The monthly disability pension is the insured's old-age pension or a flat-rate amount of €114.66 (April 2011) plus a length-of-service component based on 30 years of coverage multiplied by the assessed degree of disability, whichever is greater.
The monthly length-of-service component is €4.34 (April 2011) multiplied by the number of years of service up to December 31, 1998.
The minimum monthly disability pension is the national pension rate of €128.45 (April 2011).
There is no maximum disability pension.
Persons receiving a disability pension may continue working.
The disability pension is replaced by an old-age pension at retirement age.
Benefit adjustment: Disability pensions are adjusted annually in April according to changes in the consumer price index and the annual increase in social tax contributions.
National disability pension: A percentage of the monthly national pension rate is paid according to the assessed degree of disability. The monthly national pension rate is €128.45 (April 2011).
Persons receiving the national disability pension may continue working.
Pension supplement: Veterans of the Estonian War of Independence and their widow(er)s receive 100% of the national pension rate; persons incapacitated for work as a result of a nuclear test or accident and veterans of WWII or military personnel receive 10%; and certain prisoners of war receive 20%.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension rate is adjusted annually by the Estonian parliament.
Survivors benefits for dependents
Social insurance
Survivor pension: 50% of the reference pension for one survivor, 80% for two and 100% for three or more. The amount is split equally among all eligible survivors.
The reference pension is the higher of the deceased's old-age pension or the sum of the flat-rate amount of €114.66 (April 2011) plus a length-of-service component based on 30 years of coverage (see old-age pension).
The survivor pension is paid for 12 months after remarriage.
Full orphans receive the survivor pension for both parents.
The minimum survivor pension is 40% of the old-age pension paid for a person with a length-of-service component based on 30 years of coverage (see old-age pension).
The maximum survivor pension is 100% of the old-age pension paid for a person with a length-of-service component based on 30 years of coverage (see old-age pension).
National survivor pension: 50% of the national pension rate for one survivor, 80% for two and 100% for three or more. The amount is split equally among all eligible survivors.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension rate is adjusted annually by the Estonian parliament.
Death grant: A lump sum of €191.74 is paid by local governments only.
Mandatory individual account
Survivor pension: If the insured dies before retirement, designated survivors receive the accumulated value of the individual account. If the insured dies after retirement, designated survivors may receive a periodic benefit for at least five years.
Survivor pension: 50% of the reference pension for one survivor, 80% for two and 100% for three or more. The amount is split equally among all eligible survivors.
The reference pension is the higher of the deceased's old-age pension or the sum of the flat-rate amount of €114.66 (April 2011) plus a length-of-service component based on 30 years of coverage (see old-age pension).
The survivor pension is paid for 12 months after remarriage.
Full orphans receive the survivor pension for both parents.
The minimum survivor pension is 40% of the old-age pension paid for a person with a length-of-service component based on 30 years of coverage (see old-age pension).
The maximum survivor pension is 100% of the old-age pension paid for a person with a length-of-service component based on 30 years of coverage (see old-age pension).
National survivor pension: 50% of the national pension rate for one survivor, 80% for two and 100% for three or more. The amount is split equally among all eligible survivors.
The monthly national pension rate is €128.45 (April 2011).
Benefit adjustment: The national pension rate is adjusted annually by the Estonian parliament.
Death grant: A lump sum of €191.74 is paid by local governments only.
Mandatory individual account
Survivor pension: If the insured dies before retirement, designated survivors receive the accumulated value of the individual account. If the insured dies after retirement, designated survivors may receive a periodic benefit for at least five years.
Administrative organization
Social insurance
Ministry of Social Affairs (http://www.sm.ee) is responsible for general management and supervision.
Ministry of Social Affairs
Gonsiori 29,
15027 Tallinn,
Estonia
Tel.: +(372) 626 93 01
Fax: +(372) 699 22 09
National Social Insurance Board (http://www.ensib.ee) is responsible for overall planning and coordination.
Estonian National Social Insurance Board
Lembitu str. 12,
15092 Tallinn,
Estonia
Tel.: +(372) 640 81 18
Fax: +(372) 640 81 55
Mandatory individual account
Ministry of Finance (http://www.fi.ee) supervises the Financial Supervisory Authority and the Registrar of the Estonian Central Register of Securities.
Ministry of Finance
Suur-Ameerika 1,
15006 Tallinn,
Estonia
Tel.: +(372) 611 35 58
Fax: +(372) 696 68 10
Financial Supervisory Authority (http://www.fi.ee) supervises financial services providers, including pension management companies and life insurance companies.
Financial Supervisory Authority
Sakala 4,
15030 Tallinn,
Estonia
Tel.: +(372) 668 05 00
Fax: +(372) 668 05 01
Registrar of the Estonian Central Register of Securities (http://www.e-register.ee) sets up a pension account for each insured person.
Estonian Central Register of Securities
Tartu mnt 2,
10145 Tallinn,
Estonia
Tel.: +(372) 640 88 00
Fax: +(372) 640 88 01
Ministry of Social Affairs (http://www.sm.ee) is responsible for general management and supervision.
Ministry of Social Affairs
Gonsiori 29,
15027 Tallinn,
Estonia
Tel.: +(372) 626 93 01
Fax: +(372) 699 22 09
National Social Insurance Board (http://www.ensib.ee) is responsible for overall planning and coordination.
Estonian National Social Insurance Board
Lembitu str. 12,
15092 Tallinn,
Estonia
Tel.: +(372) 640 81 18
Fax: +(372) 640 81 55
Mandatory individual account
Ministry of Finance (http://www.fi.ee) supervises the Financial Supervisory Authority and the Registrar of the Estonian Central Register of Securities.
Ministry of Finance
Suur-Ameerika 1,
15006 Tallinn,
Estonia
Tel.: +(372) 611 35 58
Fax: +(372) 696 68 10
Financial Supervisory Authority (http://www.fi.ee) supervises financial services providers, including pension management companies and life insurance companies.
Financial Supervisory Authority
Sakala 4,
15030 Tallinn,
Estonia
Tel.: +(372) 668 05 00
Fax: +(372) 668 05 01
Registrar of the Estonian Central Register of Securities (http://www.e-register.ee) sets up a pension account for each insured person.
Estonian Central Register of Securities
Tartu mnt 2,
10145 Tallinn,
Estonia
Tel.: +(372) 640 88 00
Fax: +(372) 640 88 01
Last survey reply: 01 January 2012
Last ISSA update: 01 January 2012
Exchange rate: US$1.00 equals 0.77 euros (€).