Review of valorisation index of pension capital in Latvia

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During the crisis, the valorisation coefficient included in the Latvian pension formula dropped drastically in the last 5 years. As a result, with social insurance contributions constant, pensioners who retired in 2012 were receiving a pension that was 25% lower than those who retired in 2009. Parliament adopted amendments to the Law on State Pensions, prescribing recalculation of all pensions granted in 2010-2015 and new rules for the valorisation index. These amendments have short- and long-term effects on the pension system.

Author: Feliciana Rajevska

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