Analytics, Financial Services, Latvia, Legislation, Pensioners

At the same time, the federation's board decided to request the ministry to consider the possibility of differentiating the indexing coefficient depending on pension amount in order to achieve a steeper increase in small pensions.

The Welfare Ministry has proposed that all pensions be indexed next year based on an index made up of consumer price index and wage growth index.

According to this indexing model, larger pensions will increase more than smaller pensions, the federation's board has concluded. For instance, monthly pensions of LVL 200 and more will increase by approximately LVL 5, pensions of LVL 150 – by LVL 3.75, whereas pensions of LVL 100 – by LVL 2.50.

The federation believes that all pensions should increase by the same amount, which requires a differentiated coefficient depending on pension amount. However, taking into consideration the current situation in the government, the federation's board concluded that there were just two options – either to support the Welfare Ministry's proposal or keep the current system unchanged.

Therefore, given that the system proposed by the Welfare Ministry is more advantageous than the current system, the federation's board decided to support the ministry's proposal.