Judges in Latvia face a new pension reform that increases service years required for special pensions from 20 to 25 years and alters pension calculation methods, raising concerns about financial security.
A new pension reform in Latvia proposes significant changes to how judges receive their special pensions, intending to increase the number of years of service needed for eligibility from 20 to 25 years. This change, alongside revisions that adjust how pensions are calculated based on a 120-month salary period preceding retirement, has raised alarms regarding the financial security and independence of the judiciary. Currently, there is a move to limit both the minimum and maximum amounts of the special pension by a reduction of 5%, which may impact judges' financial stability.
The reform will specifically affect judges and prosecutors appointed on or after January 1, 2027, who have served less than 15 years, meaning that new entrants into the judiciary will face stricter eligibility criteria for pension benefits. However, those currently receiving special pensions will not be affected by these changes, indicating a two-tier system that could lead to disparities and potential dissatisfaction among future judges regarding their financial security as they age into retirement.
The implications of this pension reform could extend beyond merely financial aspects, potentially influencing the independence of the judiciary in Latvia. As judges might feel pressured by financial constraints, their decision-making could be compromised, leading to concerns over justice delivery. The Judicial Council's chairman is advocating for changes or reconsiderations of these provisions to ensure judges' independence and the future integrity of the legal system in Latvia.
