In Latvia, about 10,000 women will be able to increase their pension contributions for small payments: what the government offers

Residents of Latvia who raised children, studied, or cared for others in the early 1990s will have the opportunity to increase their pension contributions and, accordingly, the amount of their future or already assigned pension. This opportunity is provided by amendments to the law on state social insurance, which were supported by the Saeima last week. The legislative changes are not yet finalized. The period in question is from January 1, 1991, to December 31, 1995, when special social insurance rules were in effect in Latvia. ### Why the government offers to recalculate contributions After the restoration of Latvia's independence, the social insurance system changed rapidly. From 1991 to 1995, there were provisions that allowed people who were not working but were raising children, studying, or caring for the sick to voluntarily pay social contributions. According to Latvijas Avīze, the amount of such contributions, converted to modern currency, ranged from one to 56 euro cents. Paying contributions allowed the relevant periods to be included in the insurance record, which is taken into account when assigning a pension. However, many residents were unaware of this opportunity and did not take advantage of it. As a result, the years spent raising children or caring for relatives may not have been counted in their pension contributions. Now the government offers to correct this situation by allowing the relevant payments to be made retroactively. ### Who can increase their pension contributions One of the main groups targeted by the changes are women who gave birth and raised children during the period from 1991 to 1995. However, this does not mean that all mothers who had young children during these years will automatically have the right to increase their contributions. As explained by Agrita Ozoliņa, a representative of the Ministry of Welfare, most women who raised children during the specified period maintained employment relationships. Social contributions were made on their behalf, so the relevant years are already included in their pension contributions. According to the ministry, there are about 30,000 such women. At the same time, approximately 10,000 women raised children outside of employment relationships. It is for this group that the opportunity for voluntary contributions may be particularly important. The amendments also provide for the inclusion of certain periods of education and care for others. ### Can an already assigned pension be increased The proposed changes apply not only to future pensioners but also to people who are already receiving a pension. If the relevant years were not previously included in the insurance record, voluntary contributions may create a basis for increasing it and subsequently revising the pension amount. However, simply giving birth to a child in 1991–1995 does not automatically grant the right to an increase. The main condition is the existence of a period that, according to current rules, was not included in the insurance record and which the new regulations will allow to be counted after the contributions are paid. The specific amount of any potential pension increase will depend on individual circumstances. The amendments also concern the insurance record for unemployment. The final procedure for applying the new rules will be known after the legislative process is completed.