All existing special retirement pension laws should be reviewed and a balanced transition period should be approved. On top of that, it is necessary to reassess retirement pension payment conditions, says Welfare Ministry’s Social Insurance Department’s senior expert Dace Trušinska.
The ministry admits that in relation to retirement pension payment conditions it would be necessary to review the range of persons it is provided to, at the same time reviewing the need to increase pension age threshold and seniority.
Welfare Ministry reports every ministry and institution whose employees already have a set or have plans to set retirement pensions should review the real need for early retirement in consideration of their place in the labour market.
As previously reported, Latvian State Audit head Elita Krūmiņa announced at a press-conference on 18 May that the state should review the established retirement pension system, because the total amount the state’s amount of commitment towards maintenance of the retirement pension system is currently estimated at EUR 4.5 billion.
State Audit estimated the retirement pension system costs the state budget approximately EUR 74 million every year. The amount of commitments or the amount needed to pay retirement pensions in the future is estimated at EUR 4.5 billion.
Currently Defence Ministry’s estimated pension costs reach EUR 1.3 billion, Foreign Affairs Ministry’s amount is estimated at nearly EUR 53 million, Corruption Prevention and Combating Bureau’s (KNAB) amount is estimated at EUR 11.5 million, Culture Ministry’s amount – EUR 1.5 million, Welfare Ministry’s – EUR 645 million, and the pension cost amount estimated for the office of the prosecutor is EUR 158.2 million. Although Interior Affairs Ministry has not re-calculated amounts for retirement pensions, the amount, according to estimates from auditors, could reach EUR 2 billion.
— to bnn-news.com