Any changes to the early retirement (service) pension system that worsen the current conditions for granting pensions to officials with special service ranks — without a transitional period — will negatively impact the Prison Administration (IeVP), the authority has warned.
Commenting on proposed changes to the service pension system, IeVP emphasized that it has not yet been presented with the detailed proposals, and therefore broader commentary is not currently possible.
The Prison Administration believes that ill-considered amendments could lead to a drain of human resources from the sector and weaken internal security.
As previously reported, from 2027, certain professional categories may no longer qualify for the service pension system, Prime Minister Evika Siliņa (New Unity) told journalists on Monday following a meeting of the Strategic Management Thematic Committee.
She noted that
political discussions continue on how to reform the long-standing, unchanged service pension system.
Siliņa pointed out that in many sectors currently eligible for service pensions, salaries have increased significantly in recent years, while the pension terms have remained the same.
The Prime Minister stressed the need to find a way to make the service pension system more equitable compared to the general population, who receive old-age pensions. For example, old-age pensions in Latvia currently replace, on average, about 40% of the person’s previous income, while service pensions replace about 80–90%.
Siliņa assured that the changes would not affect those already receiving service pensions: “Nothing will be taken away from them.” However, from 2027, new entrants into certain professions might no longer qualify for service pensions.
At the same time, if a decision is made to raise the minimum age and length of service required for a service pension, these changes will apply to everyone currently in the system from 2027.
“If we wait 20 years for changes to take effect, the budget won’t be able to handle it,”
Siliņa said.
She emphasized that this is still an early-stage discussion, and the issues need to be addressed both at the government level and in dialogue with trade unions and cooperation partners. For certain professions, such as judges, regulation is under the purview of the Saeima.
A presentation prepared by the State Chancellery proposed that, starting in 2027, diplomats could be excluded from the service pension system, instead receiving bonuses for service in high-risk countries. Prosecutors and judges would receive special pensions, while artists from ballet, circus, choirs, orchestras, theatres, and puppet theatres would be offered support for retraining in other professions. In the case of the judiciary, the government could issue a recommendation for parliamentary debate.
The presentation also proposed removing from the service pension system all positions that do not involve regular (daily) health or life-threatening duties — including support function personnel.
Additionally,
it was suggested that time worked in the private sector could be counted toward the service pension,
but limited to 20% of the total required service period. At the same time, it was proposed to retain the rule that service pensions are paid only until the standard retirement age is reached.
The State Chancellery emphasized that these changes would not apply to current service pension recipients.
The presentation also proposed a gradual increase of the required service period by five years — adding six months annually. Similarly, the minimum retirement age for service pensions would be gradually increased by five years (or ten years for prosecutors), also by six months per year.
Changes to the pension calculation formula were also suggested, specifically excluding the final two months of salary from the pension base.
The Chancellery explained that
the service pension system was first reformed in 1998.
Initially, service pensions from the state budget were granted only to officials of the Ministry of the Interior with special ranks and military personnel.
Over time, the scope expanded. Today, in addition to the previously mentioned categories, service pensions are also granted to: prosecutors (since 2000), Constitutional Protection Bureau officials (since 2004), artists of national and municipal professional orchestras, choirs, concert organizations, theatres, and circuses (since 2005), judges (since 2006), diplomats (since 2007), Corruption Prevention and Combating Bureau (KNAB) officials (since 2009), State Security Service and Military Intelligence and Security Service officials (since 2015), Emergency Medical Service (NMPD) personnel involved in urgent care (since 2016).
Each group has different retirement ages and service period requirements. For example: prosecutors, KNAB officials, officials with special ranks in the Interior Ministry, and security service personnel retire at age 50 with 20 years of service. Military personnel retire between ages 45–65, with 15–20 years of service. Performing artists can retire between ages 38–55, with service periods ranging from 10–30 years. Diplomats and NMPD staff retire at age 55 with 20 years of service. Judges retire at 65 with 20 years of service. The average age of retirement under the service pension system from 2011 to 2024 was 49.7 years. In 2023, the state paid 115.9 million euros in service pensions (excluding payments to security service officials). Since 2020, total expenditure has risen by 46.3 million euros.
The State Chancellery has identified major shortcomings in the current system — notably that eligibility criteria and professional categories were created ad hoc, with specific motivations, and have not been reassessed in response to changing conditions.
Read also: Latvian Prime Minister: Some professions may no longer qualify for early retirement pensions