1994 – State Social Insurance Fund is established (SSIF).
1997 – SSIF becomes a member of International Social Security Association.
1998 – SSIF is reorganized and renamed into the State Social Insurance Agency (SSIA).
1998 – SSIA transfers administration of the social tax (social insurance contributions) to the State Revenue Service (SRS).
2004 – SSIA from a non-profit state joint stock company becomes a state agency.
In order to fulfil public administration functions in February 1994 with the decision of the Republic of Latvia Cabinet of Ministers decision the Ministry of Welfare State Social Insurance Fund (SSIF). Competence of the fund included collection and management of the social insurance resources, organisation of pension and benefit payment as well as management of the local social insurance offices. The fund had to become a modern social insurance institution, that would be flexible enough to ensure fast implementation of new social insurance services, besides its task was to make existing processes in document processing and in other activities connected with provision of services as efficient as possible. The general goal envisaged by the long-term development programme was to ensure high quality customer service.
In 1997 the SSIF becomes a member of the International Social security Association. Association does research work in the area of social security and informs their member organisations with the results at conferences and seminars. On their home page association regularly informs about the latest developments in the area of social security as well as about the changes in the legislation of all member countries. On 1 January 1998 the non-profit state joint stock company State Social Insurance Agency (SSIA) starts its work as a successor of the reorganised State Social Insurance Fund overtook its liabilities and authority maintaining consistency in the main areas of activities:
- Administration of the state social services;
- Administration of the social insurance special budget.
This was not just the change of a name, the legal status of the organisation changed as well. Based on the law On the State Social Insurance (adopted in October 1997), the public administration functions in ensuring of the social rights is realised by the SSIA. That means, that the state maintained its regulatory role, but service provision was passed over to its agent – the state agency.
The law stipulated, that the funds earmarked for the social insurance had to be accumulated in separate funds – special budgets. The SSIA began to manage this budget. Since 1998 the SSIA transferred administration of the social insurance contributions to the State Revenue Service, who is responsible for collection of contributions and collection of debts since then.
Change of the legal status of the SSIA resulted from the set goal – to reach higher administrative efficiency. In order to reach this goal the state had to provide the SSIA with the appropriate material and financial resources, had to allocate more autonomy in management, had to determine performance indicators, that could be controlled and monitored as well as to assess the management efficiency. On 1 January 2004 based on the Public Agency Law the SSIA has changed its legal status, instead of the non-profit organisation state joint stock company it became a state agency under supervision of Ministry of Welfare , the new organisation is the successor of the previous organisation and overtakes its liabilities and rights.