The Ministry of Welfare proposes to limit the maximum amount of funeral benefits and payments to the spouse of a deceased pensioner. These changes are prompted by cases where an individual had a very high pension, and consequently, the benefits were disproportionately large, reports rus.lsm.lv.
The Ministry of Welfare proposes to limit the maximum amount of funeral benefits and payments to the spouse of a deceased pensioner. These changes are prompted by cases where an individual had a very high pension, and consequently, the benefits were disproportionately large, reports rus.lsm.lv. What will be the cap on payments and how can one manage their accumulated pension funds?
Currently, the funeral benefit is paid at the rate of two pensions, after which the spouse receives half of the deceased's pension for a year. On average, this amounts to about 1200 euros for funerals and 300 euros monthly for the spouse. However, for pensioners with very high pensions, these amounts can reach tens of thousands of euros.
To avoid excessive budget expenditures, the ministry proposes to introduce a cap on payments: a maximum of 8,775 euros for funerals and no more than 4,388 euros per month for the spouse.
At the same time, second-pillar pension savings can be fully bequeathed — to relatives or any chosen person, or they can become part of the general inheritance. The amendments have already been submitted for consideration, and if approved by the Saeima, they will come into effect next year, explains Dace Trušinska, a senior expert in the social insurance department of the Ministry of Welfare.
