The changes are not expected to affect those workers who, at the time of the entry into force of the relevant amendments to the laws, are already receiving or will acquire the right to a pension for length of service.
In order to ensure a fair, equitable, and financially sustainable pension system for length of service, the Budget and Finance (Tax) Commission of the Saeima on Thursday, November 20, supported in the final reading amendments to nine laws that will introduce gradual changes to the previous regulation of pensions for length of service starting in 2027. The bills are linked to the draft framework law on the state budget for 2026 and the budget for the next three years.
According to the Saeima's press service, the changes are not expected to affect those workers who, at the time of the entry into force of the relevant amendments to the laws, are already receiving or will acquire the right to a pension for length of service in accordance with the current legislation (qualifying for a pension for length of service by age and length of service, even if they continue their employment).
"Currently, pensions for length of service are assigned based on how long a person has worked in a specific position or profession and their age. However, the rules differ across sectors - each has its own special conditions. This has led to inequality between professions, as for some the conditions for assigning pensions are easier, while for others they are more difficult. The calculations also differ. Moreover, these conditions are not regularly reviewed in light of changes in the labor market and in sectors, and they are increasingly costing the state budget," said the chair of the budget commission, Anda Čakša, earlier.
The amendments to the laws provide for a gradual change to the system affecting those employed individuals who until now could retire earlier than the general retirement age, including military personnel, internal affairs employees, border guards, firefighters, and others. In the future, pensions for length of service will only be assigned to those whose work is associated with increased risk, threats to health or life, such as firefighters and rescuers. The changes are proposed to reduce the differences between recipients of pensions for length of service and the rest of society, creating a more equitable overall system. They are planned to be implemented starting in 2027, gradually introducing unified principles and a clear funding model. At the same time, it is expected to maintain social protection for those whose work is associated with special risks or public safety.
The amendments to the laws stipulate a gradual increase in the length of service required to qualify for a pension for length of service and the retirement age by six months each year over five years, as well as excluding the last two months from the pension calculation. For individuals who have accumulated less than 10 years of length of service by January 1, 2027, the formula for calculating the pension for length of service will also be changed. The pension will be calculated based on the remuneration received during the last 10 calendar years, ending two months before the termination of service.
Additionally, a reduction in the minimum and maximum amount of pensions for length of service by 10–20 percent is provided through equalization between services, including a five percent reduction in the case of dismissal or release from duty.
Prosecutors and judges are to be excluded from the professions eligible for pensions for length of service, with a special pension provided for these groups, as well as for diplomats. Furthermore, the changes will affect ballet dancers, circus performers, choir members, puppet theater actors, orchestra musicians, soloists, vocalists, and theater actors, with support measures planned for representatives of these professions, including retraining for other professions. According to the changes, pensions for length of service will no longer apply to those positions and professions where the performance of work duties is not associated with regular threats to health and life, including for individuals performing support functions. It is planned that time worked in the private sector can be included in the length of service, but not more than 20 percent of the total length of service. The pension for length of service will be paid until the general retirement age is reached. After that, the payment will cease, and the individual will subsequently receive an old-age pension calculated in the general manner from the individual's social insurance contributions.
Changes to the pension system for length of service are also proposed due to the rapidly increasing fiscal burden created by the pension system. It is expected that in five years, the state budget expenditures on these pensions will already exceed 200 million euros per year, as indicated in the annotations to the bills.
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