Capital of the 2nd pension pillar may be inherited from 2020

Every participant to the 2nd pension pillar, who has not yet applied for retirement pension (including the early one), can choose the further use of the capital accumulated within the 2nd pension pillar, if the person dies before the granting of retirement pension Such provision is stated by the Law on State Funded Pensions.

Data summarised by the State Social Insurance Agency (SSIA) shows that, every year, on average, more than 5,000 participants to the 2nd pension pillar die before reaching their retirement age. So far, the accumulated pension capital was transferred into the state pension special budget after their death.

Now, participants to the 2nd pension pillar may determine further actions to be taken by the SSIA with the capital accumulated within the 2nd pension pillar in case of their death:

– To transfer for inheritance in accordance with the procedures laid down in the Civil Law;

– To add to other person’s capital of the 2nd pension pillar;

– To transfer into the state pension special budget.

If a person wants to transfer the accrual of the 2nd pension pillar for inheritance or to add to the capital of 2nd pension pillar of another person, he/she must apply to the SSIA with a submission indicating his/her choice.

Whereas, in all cases, when a person has not specified his/her choice, the SSIA will transfer the accrual of the 2nd pension pillar of the deceased into the state pension special budget. Therefore, in case of such a choice, the person is not obliged to apply to the SSIA with a submission.

The most convenient way to submit a submission to the SSIA is by electronic means on the portal Latvija.lv by choosing the submission “Regarding the Use of the Accumulated State Funded Pension Capital in Case of Death Before the Granting of Retirement Pension”, by sending it with affixed safe electronic signature to the e-mail address: edoc@vsaa.gov.lv, as well as in person at the SSIA or the unified state and municipal customer service centres.

A person is entitled to change his/her choice, and the SSIA will take the last received submission into the account.

More information on the inheritance options of capital of the 2nd pension pillar is available on the website www.kampensiju.lv.

Published date: [21.04.2020]