Latvian Pension System from 1918 until Today: Evolution, Reforms, Legislation

The main intention of the essay is to look on the evolution of pension system in the former socialist country Latvia. The structure of this paper of the study is as follows: first, a historical overview on pension system before the World War II i.e. during Latvia’s independence, and during Soviet times is given. Then deeper insight into pension system reform after regaining the independence in 1991 is pointed out. Why the reform was needed, how pension policy was formulated until it developed form of the three – tier pension system what is currently in Latvia, how legislation changed during the course, are the questions to answer in this essay. The discussion on reform in 1990s is raised upon and argued; and current pension system is depicted.When analysing current development in the social sector, particularly, the pension system, it is necessary to take into account historical background, which has influenced social transformations to a much greater extent than have any theoretical considerations.
From a historical point of view concerning the development in the social sector, three main periods can be highlighted for Latvia:
1.Latvia as an independent state before World War II (WWII);
2.Latvia as a part of the Union of Soviet Socialist Republics (USSR);
Latvia after the restoration of independence in August 1991.During these three periods the basic conditions and principles of social security have changed radically and these developments can be considered as revolutions in the social sphere itself. How much it is concerned in this essay the third period will have deeper look on transformation of pension system, therefore, this part is divided apart by itself. …