Budget, Financial Services, Latvia, Legislation, Pensioners

International Internet Magazine. Baltic States news & analytics Wednesday, 16.01.2019, 12:42

Additional EUR 160 mln earmarked in 2018 for pensions in Latvia

BC, Riga, 12.01.2018.Print version
In this year’s budget additional EUR 160 million have been earmarked for pensions, Latvian Welfare Minister Janis Reirs (Unity) told LETA.

He said that last year everything that had been included in the government action plan in relation to pensions was put into life, still there is a need to index pensions at a steeper rate and promote solidarity among generations to make people eager to pay social tax.

According to Reirs, there is a proposal to earmark 1 percent of social contributions to pensions of parents. The Welfare Ministry plans to work on this proposal this year.

At the same time, the minister said that commissions for management of second-pillar pension plans have been cut by half, thus, about EUR 27 million will go to the pension plans instead of being paid in commissions.

Reirs said that this year’s priorities in the welfare sector are families with children, people with disabilities and pensions. Even though progress has been achieved in all those areas, it is important to continue work to ensure more favorable conditions in all of them. The minister said that this year’s financing is sufficient so that the ministry can work on the solutions.

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