60,000 ask for faster pension growth

Take note – story published 8 years ago

Friday, July 31 marks the last day when signatures are accepted for supporting the initiative for pension indexation starting this year. In the next few weeks, all the gathered signatures will be handed to Saeima, reported a story on Latvian Radio on Friday. The initiative is organized by the Latvian Pensioners' Federation.

According to latest data by the federation, more than 60,000 seniors and their supporters have signed for the initiative. 

The number of signatures gathered is less than in 2013 when about 100,000 people signed a similar petition.

It should be noted that Saeima has already amended the State Pensions law, according to which pensions will be indexed next year in order to counter negative capital growth on the pensions. The Pensioner's Federation is fighting to have it done this year.

Upon retirement, the size of an individual pension in Latvia is calculated based on the social insurance contribution wage index, also called the capital index. During the financial and economic crisis this index was smaller than 1 and the pensions calculated for people at that time are smaller than those paid to people, who retired during the years of the economic boom when the capital index was higher than 1.

The law proposes regulating the pension capital, i.e., the accrued social insurance contributions, so that the capital index doesn't fall below 1 during years of economic downturn, and doesn't increase unchecked during periods of intense growth.

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