Implementation of the Agreement between the Republic of Latvia and the Republic of Lithuania

On 1 April 2013 the Agreement between the Government of the Republic of Latvia and the Government of the Republic of Lithuania on Taking Account of Insurance Periods of the Former USSR (hereinafter – the Agreement), thus preventing taking account of one insurance period twice in the length of period of insurance.

The goal of the Agreement is to prevent a situation when the same work and equivalent periods if the former USSR accrued until 1 January 1991 are taken into account by the both states when granting pension according to the normative acts of the Republic of Latvia and the Republic of Lithuania.

The Agreement applies to persons who have acquired or will acquire right to pension under the legislation of the Republic of Latvia and the Republic of Lithuania and if calculating their pension Latvia and Lithuania simultaneously take into account the same work and equivalent periods accrued until 1 January 1991 and completed in the territory of the former USSR, except for the periods completed in the territory of Latvia or Lithuania or the states with which Latvia has concluded an agreement in the field of social security, as well as to the family members of such persons.

If Latvia or Lithuania takes into account the same work and equivalent periods accrued until 1 January 1991 and completed in the territory of the former USSR, these periods shall be taken into account by the State under whose legislation the overall insurance period in full years is longer, but in case the overall insurance period in full years is equal, insurance periods of the former USSR shall be taken into account by the State under whose legislation the person was last insured, i.e. the State where the last insurance period prior to granting of pension was.

For example, a citizen of Latvia lives in Latvia. He has worked 14 years in Latvia, 11 years in Lithuania, and 3 years in Kazakhstan (until 1 January 1991). The person is entitled to the pension both in Latvia and Lithuania. The national norms of both these states provide that the period completed in Kazakhstan shall be included in the length of period of insurance. The 14 years in Latvia and the 11 years in Lithuania are compared. The length of period of insurance in Latvia is longer than the length of period of insurance in Lithuania; therefore the work period completed in Kazakhstan is included in the length of period of insurance in Latvia.

Special provisions apply to the periods treated as insurance periods of the former USSR. The Agreement provides for the following equalized periods:

–        work periods at the branch of the company of one State (Latvia or Lithuania), which had the place of activity in the territory of the other State (Latvia or Lithuania);

–        periods of compulsory military service, service of re-engagement for soldiers and service for officers at the army of the former USSR, irrespective of the territory of the former USSR State, except for cases when the aforementioned periods have been accrued in the territory of a state with which Latvia has concluded an agreement in the field of social security;

–        work periods at the military unit of the former USSR irrespective where the former USSR compulsory military service was performed or such military unit was situated, except for cases when the aforementioned period has been accrued in the territory of a state with which Latvia has concluded an agreement in the field of social security.

If Latvia or Lithuania takes into account the same work and equivalent periods accrued until 1 January 1991 and completed in the territory of the former USSR, these periods shall be taken into account by the State where the person lives when applying for pension. In the case when the person does not live in Latvia or Lithuania these insurance periods shall be taken into account by the State under whose legislation the overall insurance period in full years is longer, but in case the overall insurance period in full years is equal, insurance periods of the former USSR shall be taken into account by the State under whose legislation the person was last insured.

If insurance periods of the former USSR or periods treated as insurance periods of the former USSR have already been taken into account in the length of period of insurance in Latvia or Lithuania, the competent institution (of Latvia or Lithuania) taking into account insurance periods of the former USSR or periods treated as insurance periods of the former USSR shall remain unchanged:

–        when later a new type of pension is awarded to a person;

–        when the pension is awarded anew;

–        when the pension is re-calculated due to the fact that person proves the existence of supplementary insurance periods;

–        when a person who has been awarded a pension moves from one state to another.

After the entry into force of this Agreement the Agreement between the Government of the Republic of Latvia and the Government of the Republic of Lithuania on the Cooperation in the Field of Social Security, done on 17 December 1993, shall cease to be in force.

Published date: [03.09.2017]