Members of the Saeima today adopted, in the final reading, amendments to nine laws that will introduce gradual changes to the current service pension system starting in 2027.
The changes are necessary to ensure a fair, equitable and financially sustainable service pension system for all members of society. The draft laws are linked to the 2026 state budget and the medium-term budget framework for the next three years.
Before the vote, opposition MP Linda Liepiņa (LPV) said that while she does not object to the need for changes to the service pension system, she objects to the way these changes are being adopted, saying that in her view the process is too rushed and insufficiently discussed.
In the final reading, MPs approved amendments to the Law on Service Pensions for Employees of the Ministry of the Interior with Special Service Ranks; amendments to the Law on Service Pensions for Military Personnel; amendments to the Law on the Service Careers of Officials with Special Service Ranks of the Ministry of the Interior and the Prison Administration; amendments to the Diplomatic Service Pension Law; amendments to the Law on Service Pensions for Officials of the Corruption Prevention and Combating Bureau; amendments to the Law on Service Pensions for Employees Involved in the Provision of Emergency Medical Services; amendments to the Law on Service Pensions for State and Municipal Professional Orchestras, Choirs, Concert Organisations, Theatres and Circus Artists and the Ballet Artists’ Creative Work Allowance; amendments to the Law on Service Pensions for State Security Agency Officials; and amendments to the Military Service Law.
The changes will not affect those employed in service professions who, at the time the amendments enter into force, are already receiving or have qualified for a service pension according to the current legislation (having met the age and service requirements for receiving a service pension, even if they continue employment).
“At present,
service pensions are granted depending on how long a person has worked in a particular position
or profession and how old they are. However, the rules vary across sectors — each with its own special conditions. This has created inequality between professions, as some have easier criteria for pension eligibility and others more stringent ones. The calculation methods also differ. Moreover, these conditions have not been regularly reviewed to reflect changes in the labour market and sectors, and they are costing the state budget more and more,” Budget Committee Chair Anda Čakša has previously stated.
The amendments aim to gradually change the system affecting those employees who could previously retire earlier than the general retirement age, including soldiers, interior system employees, border guards, firefighters and others. In the future, service pensions will be granted only to those whose work involves increased risk or threats to health or life, such as firefighters and rescuers.
The changes have been proposed to reduce disparities between service pension recipients and the rest of the population, creating a fairer overall system. They are planned to be implemented starting in 2027 by gradually introducing unified principles and a transparent financing model. At the same time, social protection will be maintained for those whose work involves special risks or public safety responsibilities.
The amendments foresee gradually increasing the required years of service and the service pension age
by six months each year over a five-year period, and excluding the last two months of salary from the pension calculation. For persons who on 1 January 2027 will have accumulated less than 10 years of service, the service pension calculation formula will also be amended. The pension will be calculated based on salary received over the last ten calendar years, ending two months before retirement from service.
It is also planned to reduce the minimum and maximum amount of service pensions by 10% to 20%, equalising them across services, including a 5% reduction if a person is dismissed or released from office.
Prosecutors and judges will be removed from the list of professions eligible for service pensions; instead, these groups will be provided with a special pension scheme, and diplomats will also be excluded. The changes will also affect ballet dancers, circus and choir performers, puppet theatre actors, orchestra musicians, soloists, vocalists and theatre actors. These groups will be offered support measures, including retraining for other professions.
Under the planned changes, service pensions will no longer apply to positions and professions whose duties do not involve regular threats to health or life, including support function roles.
It is planned that up to 20% of service tenure may include time worked in the private sector.
Service pensions will be paid until the person reaches the general retirement age, after which payments will stop and the person will receive the standard old-age pension calculated according to social insurance contributions.
Reforms to the service pension system are also prompted by the rapidly growing fiscal burden it creates. According to the draft legislation, within five years state budget expenditure for these pensions is expected to exceed €200 million per year.
As previously reported, Saeima members will today begin the final reading of next year’s national budget and its accompanying laws.
Next year’s consolidated state budget revenues are planned at €16.1 billion, while expenditures.
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