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Lettonie
| Population totale (Mio): | 2.2 |
| PNB per capita (USD): | 16337 |
Old Age, Disability and Survivors
Regulatory Framework
First law: 1922.
Current laws: 1995 (Law on State Pensions of 2 November, on social insurance), with 1998, 1999, 2001, 2002, 2004, 2005,2006, 2007, 2008 and 2009amendments; 1997 (Law on State Social Insurance of 1 October), with 1998, 1999, 2001, 2002, 2003, 2004,2005, 2006, 2007, 2008 and 2009 amendments; and 2000 (Law on State Funded Pensions of 17 February), with 2002; 2003, 2004, 2005, 2006, 2007, 2008, and 2009 amendments.
Type of program: Notional defined contribution (NDC), mandatory individual account, social insurance, and social assistance system.
Municipalities provide social assistance benefits (means-tested and conditional) to the needy.
Current laws: 1995 (Law on State Pensions of 2 November, on social insurance), with 1998, 1999, 2001, 2002, 2004, 2005,2006, 2007, 2008 and 2009amendments; 1997 (Law on State Social Insurance of 1 October), with 1998, 1999, 2001, 2002, 2003, 2004,2005, 2006, 2007, 2008 and 2009 amendments; and 2000 (Law on State Funded Pensions of 17 February), with 2002; 2003, 2004, 2005, 2006, 2007, 2008, and 2009 amendments.
Type of program: Notional defined contribution (NDC), mandatory individual account, social insurance, and social assistance system.
Municipalities provide social assistance benefits (means-tested and conditional) to the needy.
Coverage
Old-age and survivor pensions (NDC): Employed persons; self-employed persons; unemployed persons with disabilities; armed forces personnel and their spouses; persons caring for a child younger than 18 months; recipients of certain social insurance benefits; and spouses of diplomatic staff.
Voluntary coverage for all persons aged 15 or older residing permanently in Latvia who are not subject to compulsory insurance; and the spouse of a self-employed person younger than the retirement age.
Old-age pension (mandatory individual account): The individual account is mandatory for persons covered under the social insurance system who were younger than age 30 on July 1, 2001; voluntary coverage for persons aged 30 to 49 on July 1, 2001.
Disability pension (social insurance): Employed and self-employed persons. Persons caring for a child younger than 18 months; recipients of the maternity and paternity benefit and parent's benefit.
Voluntary coverage for spouse of a self-employed person younger than the retirement age.
Voluntary coverage for all persons aged 15 or older residing permanently in Latvia who are not subject to compulsory insurance; and the spouse of a self-employed person younger than the retirement age.
Old-age pension (mandatory individual account): The individual account is mandatory for persons covered under the social insurance system who were younger than age 30 on July 1, 2001; voluntary coverage for persons aged 30 to 49 on July 1, 2001.
Disability pension (social insurance): Employed and self-employed persons. Persons caring for a child younger than 18 months; recipients of the maternity and paternity benefit and parent's benefit.
Voluntary coverage for spouse of a self-employed person younger than the retirement age.
Source of funds
Insured person: 9% of covered earnings plus administrative fees for the individual account.
Of the total insured person and employer contribution of 33.09% of covered earnings, 18% of covered earnings finances the NDC benefits and 2% of covered earnings finances the individual account. The remainder finances the disability, sickness and maternity benefits, work injury benefits, parent's benefits, and unemployment benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The annual minimum earnings for contribution calculation purposes are the statutory annual minimum wage; the minimum daily earnings for contribution calculation purposes depend on the statutory hourly minimum wage.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Self-employed person: 28.17% of covered earnings plus administrative fees for the individual account.
Of the total self-employed person's contribution of 28.17% of covered earnings, 18% of covered earnings finances the NDC pension and 2% of covered earnings finances the individual account. The remainder finances the disability pension, sickness and maternity benefits, and parent's benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The minimum annual declared earnings for contribution calculation purposes are 2,160 lats.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Employer: 24.09% of covered earnings.
Of the total insured person and employer contribution of 33.09% of covered earnings, 18% of covered earnings finances the NDC pension and 2% of covered earnings finances the individual account. The remainder finances the disability pension, sickness and maternity benefits, work injury benefits, parent's benefits, and unemployment benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The minimum annual earnings for contribution calculation purposes are the statutory minimum annual wage; the minimum daily earnings for contribution calculation purposes depend on the statutory minimum hourly wage.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Government: Contributes on behalf of persons residing in Latvia caring for a child younger than 18 months and receiving child care benefits, spouses of diplomatic staff and military personnel residing abroad, and certain social insurance beneficiaries.
Of the total insured person and employer contribution of 33.09% of covered earnings, 18% of covered earnings finances the NDC benefits and 2% of covered earnings finances the individual account. The remainder finances the disability, sickness and maternity benefits, work injury benefits, parent's benefits, and unemployment benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The annual minimum earnings for contribution calculation purposes are the statutory annual minimum wage; the minimum daily earnings for contribution calculation purposes depend on the statutory hourly minimum wage.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Self-employed person: 28.17% of covered earnings plus administrative fees for the individual account.
Of the total self-employed person's contribution of 28.17% of covered earnings, 18% of covered earnings finances the NDC pension and 2% of covered earnings finances the individual account. The remainder finances the disability pension, sickness and maternity benefits, and parent's benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The minimum annual declared earnings for contribution calculation purposes are 2,160 lats.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Employer: 24.09% of covered earnings.
Of the total insured person and employer contribution of 33.09% of covered earnings, 18% of covered earnings finances the NDC pension and 2% of covered earnings finances the individual account. The remainder finances the disability pension, sickness and maternity benefits, work injury benefits, parent's benefits, and unemployment benefits. (In 2011, the contribution rate for the individual account will increase from 2% to 4% of covered earnings; in 2012, from 4% to 6%. The NDC contribution rate will decrease so that the total contribution rate remains the same.)
The minimum annual earnings for contribution calculation purposes are the statutory minimum annual wage; the minimum daily earnings for contribution calculation purposes depend on the statutory minimum hourly wage.
The maximum annual earnings for contribution calculation purposes are not in force from 2009 to 2013.
Government: Contributes on behalf of persons residing in Latvia caring for a child younger than 18 months and receiving child care benefits, spouses of diplomatic staff and military personnel residing abroad, and certain social insurance beneficiaries.
Qualifying conditions
Old-age pension (NDC and mandatory individual account): Age 62 (men and women) with at least 10 years of coverage.
Special conditions apply to certain persons with disabilities; to parents with large families or a child with a disability; to persons who worked under hazardous or dangerous conditions before 1996; to certain persons affected by the Chernobyl disaster; and to politically repressed persons.
For a transitional period special conditions apply to transport workers and artists.
Early pension: Age 60 with at least 30 years of coverage. (Beginning January 1, 2012, early retirement will be eliminated.)
Deferred pension: The pension may be deferred. There is no age limit.
Old-age benefits are payable abroad.
State social security benefit (social assistance): Age 67 (men and women) with less than 10 years of coverage or with no previous coverage.
Disability pension (social insurance): The insured must be assessed with a disability and have at least 3 years of coverage. There are three groups of assessed disability: Group I (severe disability requiring constant attendance); Group II (severe disability but not in need of constant attendance); and Group III (disability).
The degree of disability is assessed by the State Medical Commission for the Assessment of Health Conditions and Working Ability.
Disability benefits are payable abroad.
State social security benefit (social assistance): Paid to disabled persons aged 18 or older. The benefit is paid for as long as the disability lasts.
Disabled person care allowance (social assistance): Paid to all adults with disabilities (regardless of whether covered or not) with an assessed Group I disability.
Survivor pension (NDC and mandatory individual account): The deceased was insured or was a pensioner at the time of death.
Eligible survivors are the insured's children, including adopted children younger than age 18 (age 24 if a full time student, no limit if disabled); and dependent brothers, sisters, grandchildren, stepsons, and stepdaughters younger than age 18 (age 24 if a full time student, no limit if disabled) who are without parents who are capable of work.
Survivor benefits are payable abroad.
Spouse benefit (NDC and mandatory individual account): If the surviving spouse receives a state pension and the pensioner died after January 1, 2007, the spouse is entitled to a lump-sum benefit.
Death allowance (NDC and mandatory individual account): Paid for the death of an insured person, an unemployed person, a pensioner, or an insured's dependent family member. In the case of the death of an insured person or a family member of an insured person, the death must have occurred within 1 month after the end of the contribution period. The benefit can be claimed up to 12 months after the date of death.
State social security benefit (social assistance): Paid to eligible survivors if the deceased did not satisfy the qualifying conditions for a pension.
Special conditions apply to certain persons with disabilities; to parents with large families or a child with a disability; to persons who worked under hazardous or dangerous conditions before 1996; to certain persons affected by the Chernobyl disaster; and to politically repressed persons.
For a transitional period special conditions apply to transport workers and artists.
Early pension: Age 60 with at least 30 years of coverage. (Beginning January 1, 2012, early retirement will be eliminated.)
Deferred pension: The pension may be deferred. There is no age limit.
Old-age benefits are payable abroad.
State social security benefit (social assistance): Age 67 (men and women) with less than 10 years of coverage or with no previous coverage.
Disability pension (social insurance): The insured must be assessed with a disability and have at least 3 years of coverage. There are three groups of assessed disability: Group I (severe disability requiring constant attendance); Group II (severe disability but not in need of constant attendance); and Group III (disability).
The degree of disability is assessed by the State Medical Commission for the Assessment of Health Conditions and Working Ability.
Disability benefits are payable abroad.
State social security benefit (social assistance): Paid to disabled persons aged 18 or older. The benefit is paid for as long as the disability lasts.
Disabled person care allowance (social assistance): Paid to all adults with disabilities (regardless of whether covered or not) with an assessed Group I disability.
Survivor pension (NDC and mandatory individual account): The deceased was insured or was a pensioner at the time of death.
Eligible survivors are the insured's children, including adopted children younger than age 18 (age 24 if a full time student, no limit if disabled); and dependent brothers, sisters, grandchildren, stepsons, and stepdaughters younger than age 18 (age 24 if a full time student, no limit if disabled) who are without parents who are capable of work.
Survivor benefits are payable abroad.
Spouse benefit (NDC and mandatory individual account): If the surviving spouse receives a state pension and the pensioner died after January 1, 2007, the spouse is entitled to a lump-sum benefit.
Death allowance (NDC and mandatory individual account): Paid for the death of an insured person, an unemployed person, a pensioner, or an insured's dependent family member. In the case of the death of an insured person or a family member of an insured person, the death must have occurred within 1 month after the end of the contribution period. The benefit can be claimed up to 12 months after the date of death.
State social security benefit (social assistance): Paid to eligible survivors if the deceased did not satisfy the qualifying conditions for a pension.
Cash benefits for insured workers (except permanent disability)
Old-age pension (NDC): The pension is based on the insured's contributions, annual capital growth adjusted according to changes in the earnings index, and average life expectancy.
The monthly minimum pension for a coverage period of up to 20 years is 49.50 lats (82.50 lats if disabled since childhood); for a coverage period of 21 to 30 years, 58.50 lats (97.50 lats if disabled since childhood); for a coverage period of 30 to 40 years, 67.50 lats (112.50 lats if disabled since childhood); for a coverage period of 41 years or more, 76.50 lats (127.50 lats if disabled since childhood).
Early pension: 50% of the old-age pension is paid until the insured reaches the normal retirement age. (Early retirement will no longer be possible from January 1, 2012.)
Deferred pension: Calculated in the same way as the old-age pension.
Benefit adjustment: No adjustments in 2009 or 2010.
Old-age pension (mandatory individual account): The pension is based on the insured's contributions plus accrued interest. At retirement, the insured can purchase an annuity or have the funds credited to his or her NDC account.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
The monthly minimum pension for a coverage period of up to 20 years is 49.50 lats (82.50 lats if disabled since childhood); for a coverage period of 21 to 30 years, 58.50 lats (97.50 lats if disabled since childhood); for a coverage period of 30 to 40 years, 67.50 lats (112.50 lats if disabled since childhood); for a coverage period of 41 years or more, 76.50 lats (127.50 lats if disabled since childhood).
Early pension: 50% of the old-age pension is paid until the insured reaches the normal retirement age. (Early retirement will no longer be possible from January 1, 2012.)
Deferred pension: Calculated in the same way as the old-age pension.
Benefit adjustment: No adjustments in 2009 or 2010.
Old-age pension (mandatory individual account): The pension is based on the insured's contributions plus accrued interest. At retirement, the insured can purchase an annuity or have the funds credited to his or her NDC account.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
Permanent disability benefits for insured workers
Disability pension (social insurance): The pension is calculated according to three groups of assessed disability.
Group I: The monthly pension is 0.45 times the insured's average earnings in 3 consecutive years in the last 5 years plus the insured's average wage multiplied by the ratio of actual contribution years to the total possible number of years of coverage between age 15 and retirement.
The minimum monthly pension is 1.6 times the state social security benefit (72 lats; 120 lats if disabled since childhood).
Group II: The monthly pension is 0.4 times the insured's average earnings in 3 consecutive years in the last 5 years plus the insured's average wage multiplied by the ratio of actual contribution years to the total possible number of years of coverage between age 15 and retirement.
The minimum pension is 1.4 times the state social security benefit (63 lats; 105 lats if disabled since childhood).
Group III: The monthly pension is the state social security benefit of 45 lats; 75 lats if disabled since childhood.
The minimum annual earnings for benefit calculation purposes for self-employed persons and voluntarily insured persons are 2,160 lats.
The maximum annual earnings for benefit calculation purposes are not in force from 2009 to 2013.
Benefit adjustment: No adjustments in 2009 or 2010.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
Disabled person care allowance (social assistance): The monthly allowance is 150 lats.
Group I: The monthly pension is 0.45 times the insured's average earnings in 3 consecutive years in the last 5 years plus the insured's average wage multiplied by the ratio of actual contribution years to the total possible number of years of coverage between age 15 and retirement.
The minimum monthly pension is 1.6 times the state social security benefit (72 lats; 120 lats if disabled since childhood).
Group II: The monthly pension is 0.4 times the insured's average earnings in 3 consecutive years in the last 5 years plus the insured's average wage multiplied by the ratio of actual contribution years to the total possible number of years of coverage between age 15 and retirement.
The minimum pension is 1.4 times the state social security benefit (63 lats; 105 lats if disabled since childhood).
Group III: The monthly pension is the state social security benefit of 45 lats; 75 lats if disabled since childhood.
The minimum annual earnings for benefit calculation purposes for self-employed persons and voluntarily insured persons are 2,160 lats.
The maximum annual earnings for benefit calculation purposes are not in force from 2009 to 2013.
Benefit adjustment: No adjustments in 2009 or 2010.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
Disabled person care allowance (social assistance): The monthly allowance is 150 lats.
Survivors benefits for dependents
Survivor pension (NDC and mandatory individual account): The monthly pension for one survivor is 50% of the deceased's old-age pension; 75% for two eligible survivors; 90% for three or more eligible survivors. The pension for a full orphan is based on the old-age pensions of both parents.
The minimum monthly survivor pension is 65% of the state social security benefit for each eligible survivor (29.25 lats; 48.75 lats if disabled since childhood).
Benefit adjustment: No adjustments in 2009 or 2010.
Spouse benefit (NDC and mandatory individual account): A lump sum is paid of 2 months of the deceased's pension.
Death allowance (NDC and mandatory individual account): The allowance is twice the deceased's last monthly average earnings used for contribution calculation purposes or the deceased's pension. For the death of a dependent family member or an unemployed person, the allowance is three times the state social security benefit (135 lats; 225 lats if disabled since childhood); for the death of a pensioner, two months of the deceased's pension; for a state social security benefit recipient, twice the state social security benefit.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
The minimum monthly survivor pension is 65% of the state social security benefit for each eligible survivor (29.25 lats; 48.75 lats if disabled since childhood).
Benefit adjustment: No adjustments in 2009 or 2010.
Spouse benefit (NDC and mandatory individual account): A lump sum is paid of 2 months of the deceased's pension.
Death allowance (NDC and mandatory individual account): The allowance is twice the deceased's last monthly average earnings used for contribution calculation purposes or the deceased's pension. For the death of a dependent family member or an unemployed person, the allowance is three times the state social security benefit (135 lats; 225 lats if disabled since childhood); for the death of a pensioner, two months of the deceased's pension; for a state social security benefit recipient, twice the state social security benefit.
State social security benefit (social assistance): The monthly benefit is 45 lats; 75 lats if disabled since childhood.
Administrative organization
Ministry of Welfare (http://www.lm.gov.lv) provides general supervision.
Ministry of Welfare
28 Skolas Street,
Riga, 1331,
Latvia
Tel.: +(371) 7021600
Fax: +(371) 7276445
State Social Insurance Agency (http://www.vsaa.lv) administers cash benefits and individual accounts.
State Social Insurance Agency
Lacplesa street 70 a,
Riga, LV-1011,
Latvia
Tel.: +(371) 67011838
Fax: +(371) 67011814
Financial and Capital Market Commission (http://www.fktk.lv) supervises the asset managers of the individual accounts.
Financial and Capital Market Commission
Kungu iela 1,
Riga, LV-1050,
Latvia
Tel.: +(371) 67774800
Fax: +(371) 67225755
Réponse à la dernière enquête: 01 Janvier 2010
Dernière mise à jour AISS: 01 Janvier 2010
Taux de change: US$1.00 = 0.49 lats.