Latvia: Government may change rules on second-tier pension funds

The Latvian government is discussing possible changes to second-tier pension funds, LETA reports. The Latvian parliament, the Saeima, will consider a public initiative opposing the government’s plan to reduce automatic second-tier pension contributions, LSM reports. The petition collected the necessary signatures in record short time. The government has proposed transferring 1% of second-pillar pension funds to the first pillar. Welfare Minister Uldis Augulis said that the government was discussing various options. One option under discussion was making participation in second-tier pension funds voluntary. Another option was to allow pension savers to choose whether to keep their pension funds in the capital market or to transfer the funds to the first tier. However, the government will not allow residents to withdraw their savings from the second-pillar funds, Augulis stated.