Latvia plans payments to restore 1991 to 1995 insurance years

Latvia’s parliament, the Saeima, has given initial support to changes that would let some people make voluntary contributions to add certain periods from 1991 to 1995 to their social insurance record, LSM reported.

The proposal covers people who were not socially insured during those years, including those studying, raising children or caring for relatives. The missing periods can affect pension eligibility and amount, the index used to adjust pensions and the amount of unemployment benefit.

Eligible periods would include studies after secondary education, postgraduate studies and professional training. Contributions could also cover time spent caring for a person with a Group I disability, a child with a disability under the age of 16, or someone aged 80 or older. Mothers could make contributions for periods spent raising a child until the child turns eight.

The periods must have been accrued in Latvia and must not overlap with other social insurance periods. For each month added to the record, a person would pay one percent of the minimum monthly wage set for the relevant year.

The changes are intended to cover periods up to the end of 1995. Latvia introduced a social insurance system based on individual contributions in 1996. The proposed rules would take effect on July 1, 2027, with voluntary payments due to begin on October 1, 2027. The Cabinet of Ministers must draw up the procedures for making and recording payments before then.

The amendments still need to pass a final reading in parliament.