Occupational social security schemes (Chapter 2 of Directive 2006/54)

AuthorKristīne Dupate
6 Occupational social security schemes (Chapter 2 of Directiv e 2006/54)
6.1 General (legal) context
6.1.1 Surveys and reports on the practical difficulties linked to occupational and/or
statutory social security issues
There are no relevant surveys and reports. Occupational social security schemes in Latvia
are still very rare. The social security is based on the statutory s ocial insurance system.
6.1.2 Other issues related to gender equality and social security
There are no other related issues.
6.1.3 Political and societal debate and pending legislative proposals
Taking into account the fact that occupational social security schemes are still very rare in
Latvia, there is no political or societal debate or pending legislative pro posals.
6.2 Direct and indirect discrimination
Formally, equal treatment in occupational social security schemes in general is covered by
the same Articles 29 and 60 of the Labour Law and they cover all employees, including
state officials and civil servants (except judges and prosecutors).
At the same time, the specific regulations and their effect in practice are more complicated.
Firstly, this is because occupational social security schemes in Latvia in the classical sense
only exist with regard to old-age pensions (insurance) and they scarcely exist. Social
security in Latvia is predominantly based on statutory social security schemes, which cover
traditional social risks. Secondly, thi s is due to the la ck of awarene ss and uncertaint y as
to what constitutes social security scheme s, taking into account the absence of classical
ones (as found in Western Europe). Thirdly, there is uncertainty regarding the relationship
between measures implementing provisions on occupational social security schemes under
Directive 2006/54/EC and insurance products provided by insurance companies within the
Regarding the first point the provisions of Directive 2006/54/EC covering occupational
pension funds have been implemented by the Law on Private Pension Funds.134 In
particular, Article 11(2) p rovides that if an employer decides to provide participation in a
private p ension plan in favou r of the employees, he/she mu st app ly such benefit to all
employees according to profession, length of service, post and other objective criteria.
Furthermore, Article 11(3) stipulates that participation of persons in a private pension plan
must be provided on equal terms, taking into account objective criteria irrespective of sex.
It is the only piece of legislation explicitly implementing matters of equal treatment in
occupational social security schemes in Latvia.
The second problem relates to the fact t hat Arti cle 60 of the Labour Law only r efers to
equal pay without any f urther explanation on what elements pay within the m eaning of
equal pay includes, which means that both employers and employees are not aware of the
fact that al l benefits connected with employment are included. In practice, some
employers provide health, travel and lif e insurance to their employees, but they are not
aware of the fact that all such benefits fall under the equal pay obligation. Nor are
employers aware of the obligation to retain rights under occupational social security
schemes during family-related leave, such as pregnancy, maternity an d paternity leave.
134 Likums par privtajiem pensiju fondiem, Official Gazette No. 150/151, 20 June 1997.

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