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The average monthly retirement pension amounts to EUR 353.20

01.04.14 The Social Insurance Board

As from April 1, the average monthly retirement pension amounts to EUR 353.20

The state pensions were indexed using the coefficient 1.05 which means that as from April 1 the base amount of the pension is EUR 134.9093, the value of a year of pensionable service is EUR 4.964 and the national pension amounts to EUR 148.98.
Recalculation using the new values resulted in an average monthly pension increase of EUR 20. As from April 1, the average monthly retirement pension is EUR 353.20.

In addition to the indexation of all pensions, for 137 191 pensioners who were employed last year and paid social tax from their income, the personal annual coefficient was calculated with reference to the national pension insurance register’s data. Depending on the amount of the annual coefficient, the pension insurance component and thus the entire pension increased. In this context, it is irrelevant whether the person worked for the entire year or a couple of months, whether full time or less. The pension increased in accordance with the pension insurance component of the social tax calculated on the basis of the person’s income.

For the preceding year, factor 1 was attributed to a person whose monthly average income subject to social tax in 2013 was EUR 849.65 provided that he or she had not joined the second pension pillar.

If the average taxable income for the preceding year remained below the said amount, the annual factor is smaller than 1 and the pension increased by a relatively small amount. However, for persons who earned income exceeding EUR 849.65 and thus paid more social tax, the annual factor was greater than 1 and their pensioned increased more.

The value of annual factor 1 is equal to the currently applicable value of a year of pensionable service – EUR 4.964.