Feb 25 • 10:55 UTC 🇱🇻 Latvia LSM

Due to small pensions, will they take bribes? The Judicial Council points out risks in the retirement pension reform

The article discusses recent reforms to judicial pensions in Latvia that increase the required service years and adjust pension calculations, raising concerns about possible corruption due to lower benefits.

The article addresses significant changes to the retirement pension system for judges and prosecutors in Latvia, highlighted by a new law that increases the minimum years of service required for special pensions from 20 to 25. This reform also revises how the pensions are calculated, now basing them on the salary received over the last 120 months prior to retirement, which raises concerns about the adequacy of future benefits for these professionals. Additionally, the law is poised to limit the maximum and minimum amounts of these special pensions by reducing them by 5%, particularly affecting judges dismissed due to health issues.

These changes will primarily impact new judges and prosecutors entering their roles after January 1, 2027, or those appointed to the positions of judge, prosecutor, or ombudsman thereafter, while existing pension recipients will not be affected by these amendments. The reforms reflect ongoing discussions around the sustainability and fairness of the pension system for judicial workers, signalling a shift towards tighter budget controls and a more stringent qualification process for pension benefits.

As noted by the Judicial Council’s concerns, these adjustments could inadvertently encourage corruption, as lower pension benefits may lead to greater financial insecurity among judges and prosecutors. This situation raises critical questions about how to maintain integrity within the judiciary while ensuring that legal professionals are adequately compensated for their vital public service roles.

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