Thousands of pensioners to receive recalculation payments in October

Several thousand pension recipients in Latvia will receive the difference from a pension recalculation for the period from April 1 to September 30 together with their monthly pension in October, LSM reported, citing information published by the State Social Insurance Agency.

The payment will go to pensioners whose pensions the agency automatically recalculated on April 1 after additional social insurance contributions were recorded following the pension’s award or an earlier recalculation.

The pensioners will receive their pensions at the updated amount, taking into account contributions that had not yet been registered in April. They will also receive the difference accumulated between April and September, while the pension will be adjusted through the annual indexation.

For example, if an old-age pension was 800 euros before April 1 and increased to 815 euros after the April recalculation, subsequently registered contributions could entitle the recipient to a further three-euro monthly increase. The pension should therefore have been 818 euros from April, creating an 18-euro difference over the six-month period. That difference will be paid in October.

From November onwards, pensions will be paid at the new amount following the revised April recalculation and October indexation. Because the April-to-September difference will have been paid in October, the November payment will be smaller than October’s but larger than September’s.

The agency said it did not have information about all social insurance contributions when it carried out the April recalculation. This included, for example, contributions paid by employers in February or March and self-employed people’s contributions for the first quarter. The April recalculation therefore included only contributions recorded by that time.