State Pension Insurance Act

Chapter 1 GENERAL PROVISIONS  

§ 1.  Scope of regulation of Act

 (1) This Act provides the definition, types and extent of state pensions, and the conditions and procedure for the grant of state pensions, the organisation of state pension insurance and the bases for calculation of funds for state pension insurance.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) The provisions of the General Part of the Social Code Act apply to the social protection prescribed in this Act, taking account of the specifications provided for in this Act.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 2.  Definition of state pension

  A state pension payable on the basis of this Act is a monthly financial social insurance benefit in the case of old age or loss of a provider which is based on the principle of solidarity and which is paid from the funds allocated for the expenditure prescribed for state pension insurance in the state budget.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 3.  Insured persons

  Insured persons are:
 1) persons who pursuant to the Social Tax Act pay the pension insurance part of social tax or for whom the pension insurance part of social tax must be paid;
 2) persons for whom the right to receive a state pension arises on other bases pursuant to this Act.

§ 4.  Right to receive state pension

 (1) Under the conditions provided for in this Act, state pensions shall be granted and paid to:
 1) permanent residents of Estonia;
 2) aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence.

 (1¹) A person specified in subsection (1) of this section whose residence is in several states has the right to receive state pension if he or she is a resident within the meaning of subsection 6 (1) of the Income Tax Act or if he or she resides permanently in Estonia within the meaning of § 6 of the Aliens Act.
[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

 (2) A state pension shall be granted pursuant to this Act unless a person receives a state pension pursuant to other Estonian Acts.

 (3) If an international agreement entered into by the Republic of Estonia contains provisions which differ from the provisions of this Act for the grant or payment of pensions, the international agreement applies.

§ 5.  Types of state pension

  This Act provides for the following state pensions:
 1) old-age pension;
 2) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 3) survivor’s pension;
 4) national pension.

§ 6.  Right to choose type of pension

  Persons who have the right to receive several state pensions shall be granted one state pension of their choice, except in the case provided for in subsection 41 (4) of this Act.

Chapter 2 OLD-AGE PENSION  

§ 7.  Right to receive old-age pension

 (1) The following persons have the right to receive an old-age pension:
 1) persons who have attained 65 years of age and
[RT I 2010, 18, 97 - entry into force 01.01.2017]
 2) persons whose pension qualifying period provided for in § 27 of this Act and earned in Estonia is 15 years.

 (1¹) In order to gradually increase the pensionable age, the right of persons born between the years 1953 and 1960 to receive an old-age pension arises, before attaining the age provided for in clause (1) 1) of this section, at the ages provided as follows:

 (2) In order to gradually make the pensionable age of men and women equal, the right of women born between the years 1944 and 1952 to receive an old-age pension arises, before attaining the age provided for in clause (1) 1) of this section, at the ages provided as follows:

 (2¹) The age specified in clause (1) 1) of this section and subsections (1¹) and (2) of this section is deemed to be the pensionable age unless otherwise provided by another Act.

[RT I 2010, 18, 97 - entry into force 01.01.2017]

 (2²) In the case of a person who has been established to have partial or no work ability on the basis of the Work Ability Allowance Act, the requirement for a pension qualifying period provided for in clause (1) 2) of this section shall be reduced by one year for each three full years during which the person had been established to have partial or no work ability.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (3) Old-age pensions are granted for life.

§ 8.  Deferred old-age pension

 (1) A deferred old-age pension is an old-age pension which is granted at a later age than the pensionable age provided for in § 7 of this Act (hereinafter pensionable age).
[RT I 2010, 18, 97 - entry into force 16.05.2010]

 (2) A person has the right to receive a deferred old-age pension at any time after his or her right to receive an old-age pension arises.

 (3) A deferred old-age pension shall be calculated pursuant to the procedure for calculation of old-age pensions provided for in § 11 of this Act, by increasing the pension by 0.9 per cent for every month which has passed after the person has attained the pensionable age.

 (4) Deferred old-age pensions are granted for life.

 (5) A deferred old-age pension shall not be granted to a person to whom a state pension has been granted (except a survivor's pension or a national pension upon loss of a provider) pursuant to this Act or any other Act.

§ 9.  Early retirement pension

 (1) A person who has earned the pension qualifying period provided for in clause 7 (1) 2) of this Act required for grant of an old-age pension has the right to receive an early retirement pension up to three years before attaining the pensionable age.

 (2) An early retirement pension shall be calculated pursuant to the procedure for calculation of old-age pensions provided for in § 11 of this Act, by reducing the pension by 0.4 per cent for every month and a period shorter than a month which remains until the person attains the pensionable age.

 (3) A pension shall be reduced by 0.4 per cent also if less than one calendar month remains until the person attains the pensionable age.

 (4) If calculation of the amount of an early retirement pension is based on the national pension rate pursuant to subsection 11 (6) of this Act, the reduction provided for in subsections (2) and (3) of this section applies to the national pension rate.

 (5) Early retirement pensions are granted for life.

 (6) Upon acquisition of an additional pension qualifying period, the amount of an early retirement pension shall be re-calculated pursuant to the procedure provided for in § 25 of this Act.

 (7) Early retirement pensions shall not be recalculated as old-age pensions (§ 7) or as old-age pensions under favourable conditions.

§ 10.  Old-age pension under favourable conditions

 (1) The following persons who have earned the pension qualifying period required for the grant of an old-age pension have the right to receive an old-age pension under favourable conditions:
 1) a mother, father, parent's spouse, guardian or caregiver who for at least eight years has raised a child under 18 years of age with a moderate, severe or profound disability or five or more children – five years before attaining the pensionable age;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 2) a mother, father, parent's spouse, guardian or caregiver who has raised four children for at least eight years – three years before attaining the pensionable age;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 3) a mother, father, parent's spouse, guardian or caregiver who has raised three children for at least eight years – one year before attaining the pensionable age;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 4) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 5) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 6) persons suffering from pituitary dwarfism – at the age of 45.

 (2) If several persons specified in clauses (1) 1)-3) of this section have the right to apply for an old-age pension under favourable conditions with respect to the same children, the persons shall agree on who exercises the right to receive the old-age pension under favourable conditions. Such agreement shall be expressed by a written consent to waive the exercise of the right to receive the old-age pension under favourable conditions in favour of other pension claimant.

 (3) If one of the persons specified in clauses (1) 1)–3) of this section refuses to grant his or her written consent to another person for claiming for an old-age pension under favourable conditions, the pension claimant has the right of recourse to the court for the resolution of the dispute.

 (4) Old-age pensions under favourable conditions are granted for life.

§ 11.  Amount of old-age pension

 (1) An old-age pension consists of three components:
 1) the base amount;
 2) a part calculated on the basis of years of pensionable service, the amount of which equals the number of years of pensionable service (§ 28) multiplied by the value of a year of pensionable service;
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]
 3) an insurance part, the amount of which equals the sum of the insurance components of an insured person (§ 12) multiplied by the value of a year of pensionable service.
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (2) The value of a year of pensionable service is the monetary value of one year of pensionable service and an insurance component of 1.000.
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (3) If a pension claimant has not earned an accumulation period (§ 30), a pension shall be granted on the basis of the parts specified in clauses (1) 1) and 2).

 (4) If a pension claimant has not completed years of pensionable service, a pension shall be granted on the basis of the parts specified in clauses (1) 1) and 3) of this section.

 (5) The instructions for the calculation of insurance components and insurance parts shall be established by the minister responsible for the area.
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (5¹) The old-age pension of a person who has been established to have no work ability on the basis of the Work Ability Allowance Act shall be greater than the following old-age pensions:
 1) the old-age pension calculated on the basis of subsection (1) of this section;
 2) the old-age pension if the person has completed thirty years of pensionable service.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (5²) The old-age pension of a person who has been established to have partial work ability on the basis of the Work Ability Allowance Act shall be greater than the following old-age pensions:
 1) the old-age pension calculated on the basis of subsection (1) of this section;
 2) 60 per cent of the old-age pension if the person has completed thirty years of pensionable service.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (6) If the amount of an old-age pension granted to a person is less than the national pension rate, the old-age pension shall be paid to the person at the national pension rate.

§ 12.  Insurance component of insured person

  [RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (1) In order to calculate the insurance component of an insured person, the amounts of the state pension insurance part of individually registered social tax calculated for the insured person shall be totalled and divided by the average amount of the state pension insurance part of the individually registered social tax in the given calendar year.

[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (2) Amounts which are transferred into the state pension insurance funds for an insured person pursuant to § 10 of the Social Tax Act and which are entered in the social protection information system shall be taken into account as the pension insurance part of individually registered social tax. The following shall also be taken into account:
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]
 1) the social tax calculated by the payer of social tax, in the cases provided for in clauses 2 (1) 1)–4), 6) and 9) and clause 6 (1) 2) of the Social Tax Act. The social tax calculated, except social tax on the unemployment insurance benefit, in the case provided for in clause 2 (1) 8) of the same Act;
 2) the social tax calculated by the state, local government, other legal person in public law or an artistic association recognised on the basis of the Creative Persons and Artistic Associations Act in the cases provided for in subsections 6 (1)–(1²) of the Social Tax Act;

[RT I, 10.01.2014, 2 - entry into force 20.01.2014]
 3) the social tax paid by a sole proprietor, in the cases provided for in clause 2 (1) 5) and § 6¹ of the Social Tax Act.

[RT I, 02.07.2012, 8 - entry into force 01.08.2012]

 (2¹) In addition to the provisions of subsection (2) of this section, amounts which are transferred into the state pension insurance funds for an insured person pursuant to Regulation (EEC, Euratom, ECSC) No 259/68 of the Council laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities and instituting special measures temporarily applicable to officials of the Commission (Staff Regulations of Officials) (OJ L 56, 4.03.1968, p. 1–7) (hereinafter Council Regulation) shall be taken into account as the pension insurance part upon calculation of the insurance component of insured persons. The procedure regulating the receipt and keeping records of such amounts shall be established by a regulation of the Government of the Republic.
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (3) The rate of the pension insurance part of social tax provided for in this Act is 20 per cent.

 (4) The amounts of the pension insurance part and the state pension insurance part of social tax shall be rounded to the accuracy of one cent.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 13.  Average amount of pension insurance part of individually registered social tax

 (1) In order to calculate the average amount of the pension insurance part of individually registered social tax, the data on the pension insurance part of individually registered social tax entered in the social protection information system in the given calendar year shall be taken as the basis for the calculation.

 (2) The Government of the Republic shall establish the procedure for calculation of the average amount of the pension insurance part of individually registered social tax.

 (3) The Government of the Republic shall approve the average amount of the pension insurance part of individually registered social tax of the previous calendar year not later than on 20 March of the current year and such average amount shall be implemented in the grant and recalculation of pensions for a term commencing as of 1 April.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017; regulations established by the Government of the Republic on the basis of subsections 13 (3) and (5) of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.]

 (4) If a pension is granted with a commencement date before 1 April, the estimated average amount of the pension insurance part of individually registered social tax approved by the Government of the Republic for entry in the social protection information system shall be taken as the basis for calculation of the pension.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (5) The Government of the Republic shall approve the estimated average amount of the pension insurance part of individually registered social tax to be entered in the social protection information system for the next calendar year at least ten calendar days before the beginning of the calendar year.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017; regulations established by the Government of the Republic on the basis of subsections 13 (3) and (5) of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.]

Chapter 3 PENSION FOR INCAPACITY FOR WORK  
[Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 14. – § 19. [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

Chapter 4 SURVIVOR’S PENSION  

§ 20.  Right to receive survivor’s pension

 (1) Upon the death of a provider, family members who were maintained by him or her have the right to receive a survivor’s pension. The right of the provider’s children, parents and the widow or widower to receive a survivor’s pension does not depend on whether they were maintained by the provider or not.

 (2) Family members who have the right to receive a survivor’s pension are:
 1) a provider’s child, brother, sister or grandchild who is under 18 years of age (or who is under 24 years of age and is a student enrolled in daytime study or, for medical reasons, in another form of study at an upper secondary school or vocational educational institution or a student enrolled in full-time study at a university or institution of applied higher education), or who is older if he or she was established to have partial or no work ability pursuant to the Work Ability Allowance Act before he or she attained 18 years of age (or in the case of a student enrolled in daytime study or, for medical reasons, in another form of study, or in full-time study, before he or she attained 24 years of age). A brother, sister or grandchild has the right to receive a pension if he or she does not have parents with capacity for work;
[RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]
 2) a provider’s parent who is of pensionable age or who has been established to have partial or no work ability pursuant to the Work Ability Allowance Act;
[RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]
 3) a provider’s non-working widow who is pregnant (from the twelfth week of pregnancy);
 4) a provider’s widow or widower who has been established to have partial or no work ability pursuant to the Work Ability Allowance Act or who is of pensionable age and whose marriage to the provider had a duration of at least one year;
[RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]
 5) a provider’s divorced spouse who attained pensionable age or was established to have partial or no work ability pursuant to the Work Ability Allowance Act before the divorce or within three years after the divorce and whose marriage to the provider had a duration of at least twenty-five years;
[RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]
 6) a parent or guardian of a provider’s child who is not employed and is raising the provider’s child who is under 3 years of age in his or her family.

 (3) Under the conditions provided for in this section, the following also have the right to receive a survivor's pension:
 1) a child whose parent's spouse or foster parent is dead and who is not maintained by his or her parent;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 2) a person who has raised and maintained a child as a parent's spouse or as a foster parent for at least eight years.
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (4) Persons specified in subsection (2) or (3) of this section shall be granted a survivor’s pension if the provider has by the date of his or her death earned the pension qualifying period which would have been necessary for the grant of an old-age pension (§ 7) or a following pension qualifying period in Estonia depending on age:

 (4¹) The requirement for pension qualifying period provided for in subsection (4) of this section for the grant of a survivor's pension shall not apply if the provider died as a result of a work injury or occupational disease.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (5) Under the conditions provided for in this section, a survivor’s pension shall also be granted if the provider is missing and the police authorities have initiated proceedings for establishing the whereabouts of a missing person concerning him or her and the police authorities have failed to establish the whereabouts of the person within 12 months.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (6) A survivor's pension shall be granted for the period during which persons specified in subsection (2) or (3) of this section meet the requirements for receiving a pension.

 (6¹) The studies of the persons specified in clause (2) 1) of this section are certified by data obtained from the Estonian Education Information System established on the basis of subsection 36⁶ (4) of the Republic of Estonia Education Act, or by a document certifying the studies presented by the person. In the event of discrepancies in the data, the data of the Estonian Education Information System shall take precedence.
[RT I 2006, 49, 370 - entry into force 20.11.2006]

 (6²) A survivor's pension shall be paid pursuant to subsection (5) of this section until the whereabouts of the provider are established or the provider is declared dead but not longer than for a period of five years.

[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (7) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]

§ 21.  Calculation of survivor’s pension

 (1) The greatest of the following old-age pensions shall be the basis for calculation of a survivor's pension:
 1) the old-age pension calculated on the basis of years of pensionable service earned by the provider until the date of his or her death and the sum of the insurance components pursuant to the provisions of § 11 of this Act;
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]
 2) the old-age pension if the person has completed thirty years of pensionable service.

 (2) A survivor's pension shall be calculated based on the pension calculated pursuant to subsection (1) of this section at the following rates:
 1) to one family member, 50 per cent;
 2) to two family members, 80 per cent;
 3) to three or more family members, 100 per cent.
[RT I 2004, 16, 120 - entry into force 01.04.2004]

Chapter 5 NATIONAL PENSION  

§ 22.  Right to receive national pension

 (1) The following have the right to receive a national pension:
 1) persons who have attained the pensionable age and who do not have the right to receive old-age pension and who have been permanent residents of Estonia or have resided in Estonia on the basis of a temporary residence permit or temporary right of residence for at least five years immediately before making a pension claim;
[RT I 2010, 18, 97 - entry into force 01.01.2017]
 2) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 3) persons specified in § 20 of this Act who, in connection with the insufficient pension qualifying period of their provider, do not have the right to receive a survivor's pension, if the provider was a permanent resident of Estonia or had resided in Estonia on the basis of a temporary residence permit or temporary right of residence for at least one year directly before his or her death;
[RT I 2008, 48, 264 - entry into force 23.11.2008]
 4) persons who have attained the pensionable age who are paid a pension retained in the former amount for a specified term pursuant to subsection 60 (1) of this Act.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (2) A national pension shall be granted for the following terms:
 1) to persons specified in clauses (1) 1) and 4) of this section, for life;
 2) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 3) to persons specified in clause (1) 3) of this section, for the period during which they meet the requirements provided for in § 20 of this Act.

 (3) A national pension shall not be granted and payment of a granted national pension shall be terminated if a person receives a pension from another state.

§ 23.  Amount of national pension

  A national pension shall be calculated at the following rates:
 1) to persons specified in clauses 22 (1) 1) and 4) of this Act, 100 per cent of the national pension rate;
 2) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 3) in the case specified in clause 22 (1) 3) of this Act, 100 per cent of the national pension rate in the case of three or more family members, 80 per cent of the national pension rate in the case of two family members and 50 per cent of the national pension rate in the case of one family member.

[RT I 2004, 16, 120 - entry into force 01.04.2004]

§ 23¹.  Transfer from national pension to pension for incapacity for work

  [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

Chapter 6 PENSION SUPPLEMENTS  

§ 24.  Right to receive pension supplements

 (1) The following pension supplements shall be added to pensions granted pursuant to this Act:
 1) 100 per cent of the national pension rate to participants and widows and widowers of participants in the Estonian War of Independence;
 2) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 3) 10 per cent of the national pension rate to participants in the Second World War and members of the Self-Defence Force.

 (1¹) The following pension supplement shall be added to old-age pensions granted pursuant to this Act and survivor’s pensions calculated on the basis of clause 21 (1) 1) of this Act:
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 1) to one parent, parent's spouse, guardian or caregiver in a family for every child who is born between 31 December 1980 and 31 December 2012 and whom he or she has raised for at least eight years, in the amount of two times the value of a year of pensionable service;
 1¹) to one parent, parent's spouse, guardian or caregiver in a family for every child who is born before 1 January 2013 and whom he or she has raised for at least eight years, in the amount of one time the value of a year of pensionable service;
[RT I, 02.07.2012, 2 - entry into force 01.01.2018 (entry into force changed - RT I, 11.07.2014, 2)]
 2) to one parent, parent's spouse, guardian or caregiver in a family, who is born before 1 January 1983 and who is not an obligated person within the meaning of the Funded Pensions Act, for every child who is born on 1 January 2013 or later and whom he or she has raised for at least eight years, in the amount of three times the value of a year of pensionable service;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (2) [Repealed – RT I 2003, 88, 589 - entry into force 01.01.2004]

 (3) If a person has the right to receive several of the pension supplements listed in subsection (1) of this section, one pension supplement of his or her choice shall be granted to such person.
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (4) If a person has the right to receive several of the pension supplements listed in this section, the person shall be paid all pension supplements at the same time, except in the case provided for in subsection (3) of this section.
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (5) The pension supplement specified in clause (1¹) 1) of this section shall not be paid if the years of pensionable service have been calculated on the basis of clause 28 (2) 12) for the same child.

[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (6) The pension supplement specified in clause (1¹) 2) of this section shall not be paid if additional contributions provided for in § 10 of the Funded Pensions Act have been made for thirty-six months for the same child. If additional contributions have been made for less than thirty-six months, the pension supplement specified in clause (1¹) 2) of this section shall be paid in proportion to the number of months for which additional contributions have not been made.

[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (7) If several persons specified in subsection (1¹) of this section have the right to apply for a pension supplement with respect to the same child, the persons shall agree on who exercises the right to receive the pension supplement. Such agreement shall be expressed by a written consent to waive the exercise of the right to receive the pension supplement in favour of the other person.

[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (8) If one of the persons specified in subsection (1¹) of this section refuses to grant his or her written consent to another person for applying for a pension supplement, the person applying for the pension supplement has the right of recourse to the court for the resolution of the dispute.
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (9) Subsections (7) and (8) of this section also apply if several persons have the right to apply for the calculation of years of pensionable service on the basis of clause 28 (2) 12) of this Act or for a pension supplement on the basis of clause (1¹) 1) of this section for the same child.

[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

 (10) The list of the documents necessary for applying for a pension supplement shall be established by a regulation of the minister responsible for the area.
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

Chapter 7 RECALCULATION AND INDEXATION OF STATE PENSIONS  

§ 25.  Recalculation of state pension

 (1) State pensions which have been granted shall be recalculated:
 1) as of 1 April once a year on the basis of data which are entered in the social protection information system and which concern the individually registered social tax of the previous year;
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]
 2) if circumstances arise which require the reduction of the pension, except in the case provided for in clause 1) of this section, as of the first day of the month following the month in which such circumstances arise;
 3) if circumstances arise which require the increase of the pension, except in the case provided for in clause 1) of this section, as of the date of submission of a corresponding application, if the application and documents are submitted within one month after the circumstances requiring the increase of the pension arise. If an application is submitted later, the pension shall be recalculated as of the first day of the month following the month in which the corresponding application is submitted.

 (2) A pensioner is required to notify the Social Insurance Board of circumstances specified in clause (1) 2) of this section in writing within ten days after the circumstances arise.

§ 26.  Indexation of state pensions

 (1) By 1 April of each calendar year, state pensions calculated pursuant to this Act shall be indexed by an index the value of which depends to the extent of 20 per cent of the annual increase of the consumer price index and to the extent of 80 per cent of the annual increase in receipt of the pension insurance part of social tax. The indexing shall be carried out pursuant to the procedure provided by subsection (7) of this section.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (1¹) Upon calculation of the index, the annual increase of the consumer price index shall be multiplied by 0.2, the annual increase in receipt of the pension insurance part of social tax shall be multiplied by 0.8 and the results shall be added together.
[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (2) The annual increase of the consumer price index shall be calculated by dividing the value of the consumer price index of the previous calendar year by the value of the consumer price index of the year before the previous calendar year, on the basis of the value of the consumer price index officially published by Statistics Estonia.

 (3) The annual increase in receipt of the pension insurance part of social tax shall be calculated by dividing the total amount of the pension insurance part of social tax of the previous calendar year by the total amount of the pension insurance part of social tax of the year before the previous calendar year, on the basis of information of the Ministry of Finance concerning the receipt of the pension insurance part of social tax.

 (4) The annual increase of the consumer price index and in the receipt of social tax shall be expressed to the accuracy of three decimal places.

 (5) A state pension shall not be indexed if the value of the index is less than 1.000.
[RT I 2009, 15, 93 - entry into force 01.03.2009]

 (5¹) The Government of the Republic may approve a lower value of the index than the one provided for in subsection (1) of this section if:
 1) the estimated real growth of the gross domestic product of the same year is negative, or
 2) the difference between the expenditure prescribed for state pension insurance specified in subsection 57 (1) of this Act and the estimated income from social tax transferred into the state pension insurance funds exceeds 1 per cent of the estimated gross domestic product of the same year.

[RT I 2009, 15, 93 - entry into force 01.03.2009]

 (5²) The Government of the Republic shall add or clear the part of index which was not increased or reduced together with the approval of the new value of the index within five years as of the application of subsection (5) or (5¹) of this section.

[RT I 2009, 15, 93 - entry into force 01.03.2009]

 (6) The Government of the Republic shall approve the index with the value of at least 1.000 and the part of the index to be added or cleared on the basis of subsection (5²) of this section not later than by 20 March of the current year.

[RT I 2009, 15, 93 - entry into force 01.03.2009]

 (7) By 1 April of a calendar year, the Social Insurance Board shall calculate the national pension rate, new values of the base amount of pension and the value of a year of pensionable service by:
 1) multiplying the national pension rate by the index approved pursuant to subsection (6) of this section;
 2) multiplying the base amount of a pension by the index approved pursuant to subsection (6) of this section the incremental part of which has been multiplied by the coefficient 1.1;
 3) multiplying the value of a year of pensionable service by the index approved pursuant to subsection (6) of this section the incremental part of which has been multiplied by the coefficient 0.9.
[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (8) The Government of the Republic shall prepare an analysis once in every five years concerning the effect of the bases for calculation of state pensions provided for in this Act on the financial and social sustainability of the pension insurance system and, if necessary, submit a proposal to the Riigikogu on amendment of the conditions for application of the methods of calculation of the index of state pensions and application of the index provided for in subsections (1) and (7) of this section.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

Chapter 8 PENSION QUALIFYING PERIOD  

§ 27.  Pension qualifying period

 (1) A pension qualifying period is a period during which an insured person is engaged in an activity which grants the right to receive a state pension.

 (2) A pension qualifying period shall be divided as follows:
 1) the years of pensionable service which are calculated until 31 December 1998;
 2) the accumulation period which is calculated as of 1 January 1999.

 (3) The list of documents necessary to certify years of pensionable service, requirements for the documents and specifications concerning the calculation of years of pensionable service shall be established by a regulation of the minister responsible for the area.

[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

 (4) The Government of the Republic shall establish the procedure for calculation of a pension qualifying period.

§ 28.  Time included in years of pensionable service

 (1) Time during which the employer of a person is required to pay social tax for the person shall be included in the years of pensionable service of the person.

 (2) Years of pensionable service shall also include:
 1) the time during which a person is a member of an artistic association or trade association as of the time the person begins engaging in creative activity. As of 1 January 1991, the time during which a person was or is engaged in creative activity shall be included in their length of service if social tax was or is paid;
 2) the period of service of a person in the Defence Forces of Estonia or any period of service deemed to be equal thereto in accordance with the Defence Forces Service Act, and any period of service in the employment of the Ministry of Internal Affairs;
 3) [repealed - RT I 2008, 48, 264 - entry into force 23.11.2008]
 4) the time during which a person is enrolled in daytime study at a vocational educational institution, in daytime study at a university or institution of applied higher education, or in a form of study deemed to be equal thereto;
[RT I 2010, 41, 240 - entry into force 01.09.2010]
 5) the period of assignment in a foreign mission for the spouse of a diplomat of the Republic of Estonia;
 6) the term of office of the President of the Republic of Estonia for the non-working spouse of the President;
 7) the time during which a person cares for a Category I disabled person, for a disabled child or for a person under 18 years of age who is disabled since childhood, and the time during which a mother, father, parent's spouse, guardian or actual caregiver of the child cares for a child under 3 years of age until the child attains 3 years of age;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 8) the time during which a person receives unemployment benefit from a state employment office or participates in labour market training organised by an employment office;
 9) the time during which a person works in a church (congregation) or other registered religious organisation. As of 1 January 1991, such time shall be included in the length of service if social tax was or is paid for the period;
 10) the time during which a person worked on a farm before its liquidation or before commencing work on a collective farm, state farm or elsewhere, if the person at that time was at least 14 years of age;
 11) the time during which a person worked on a farm, if the farm was exempt from taxes in accordance with the Estonian SSR Farm Act;
 12) two years for one parent or parent's spouse or guardian or caregiver in a family for every child whom he or she has raised for at least eight years;
[RT I, 02.07.2012, 2 - entry into force 01.01.2013]
 13) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 14) the time during which a person works as a sole proprietor if social tax was or is paid;
 15) the time during which an employee or sole proprietor specified in clause 14) of this section is temporarily incapacitated for work;
 16) the time during which a person punished by conditional imprisonment performs mandatory work, the time during which a person does community work in lieu of imprisonment or the time during which a person works in a medical-labour centre.
[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

 (3) The following shall be included in the years of pensionable service earned in Estonia under favourable conditions:
 1) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 2) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 3) [repealed - RT I 2003, 88, 589 - entry into force 01.01.2004]
 4) the duration of employment in a leper house or institution for plague control, multiplied by two;
 5) in the case of a person who was subject to forced displacement from Sõrve peninsula in Saaremaa to Germany in October or November 1944, the time from displacement until settling in Estonia, but not longer than until 31 December 1946, multiplied by three.

 (4) The time of activities provided for subsections (1)–(3) of this section which took place in the territory of the former Union of Soviet Socialist Republics up to 1 January 1991 shall be included in the years of pensionable service if the pension qualifying period of the person earned in Estonia is at least fifteen years and no other state is paying pension for such pension qualifying period.

[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (5) The time during which a person is in compulsory military service or compulsory alternative service shall be included in the years of pensionable service if the person was referred to service from Estonia or the person lived in Estonia before and after being referred to service from outside of Estonia and the pension qualifying period of the person earned in Estonia is at least fifteen years and no other state is paying pension for such pension qualifying period.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

§ 28¹.  Certification of years of pensionable service

 (1) Years of pensionable service shall be certified on the basis of information in the population register with legal effect or documents certifying years of pensionable service. If there is information with legal effect certifying years of pensionable service in the population register, the information in the register shall be taken into account.

 (2) If no information or documents concerning years of pensionable service have been preserved in the population register, the insured person has the right to submit a request to the Social Insurance Board to take into account the testimonies of witnesses.
[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

§ 29.  Calculation of years of pensionable service

 (1) Years of pensionable service shall be calculated to the accuracy of a day.

 (2) Upon calculation of the amount of a pension, years of pensionable service with the length of at least six months shall be rounded to a full year, and years of pensionable service with the length of less than six months shall not be taken into account.

 (3) Compliance with the requirement for a pension qualifying period which grants the right to receive an old-age pension or survivor’s pension shall be determined on the basis of unrounded years of pensionable service.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 30.  Calculation of accumulation period

 (1) One year towards the accumulation period of an insured person shall be calculated for the insured person for whom the pension insurance part of individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum wage for a year.
[RT I, 02.07.2012, 8 - entry into force 01.08.2012]

 (2) Upon calculation of the accumulation period, the pension insurance part of individually registered social tax of an insured person for each calendar year shall be compared to the pension insurance part of social tax calculated on the minimum wage for January of the corresponding year multiplied by twelve.
[RT I, 02.07.2012, 8 - entry into force 01.08.2012]

 (3) If the pension insurance part of social tax is paid by the state, local government or other legal person in public law pursuant to § 6 of the Social Tax Act and by a sole proprietor pursuant to § 6¹ of the Social Tax Act, the accumulation period shall be calculated to be equivalent to payment of the pension insurance part of social tax on the minimum wage.
[RT I, 02.07.2012, 8 - entry into force 01.08.2012]

 (4) Amounts which have been received for each insured person from the pension scheme of the institutions of the European Communities based on the Council Regulation specified in subsection 12 (2¹) of this Act shall be taken into account upon calculation of the accumulation period.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

Chapter 9 CLAIM FOR, GRANT AND PAYMENT OF STATE PENSION  

§ 31.  Claim for state pension

 (1) Claimants for a state pension shall submit pension applications to the Social Insurance Board.

 (1¹) The residence entered in the population register is deemed to be the residence of a pension claimant.
[RT I, 14.03.2011, 1 - entry into force 01.01.2012]

 (2) A pension application shall set out the given names and surname, personal identification code or date of birth, data on residence and contact details of the applicant, information on the type of pension applied for, information on pension received from a foreign state and employment, information on raising and caring for a child, notation concerning the method of delivery of the decision and payment of the pension, information on the documents certifying years of pensionable service of the person, date of submission of the application and confirmation on submission of the application.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (3) The date on which the Social Insurance Board receives a pension application is deemed to be the date of making a pension claim.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (4) If the pension application is sent by post, the date on the date stamp of the place from which the pension application is sent is deemed to be the date of making a pension claim.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (5) [Repealed – RT I 2002, 61, 375 - entry into force 01.08.2002]

 (6) The Social Insurance Board shall assist a pension claimant when necessary in obtaining the necessary documents for making a pension claim.

 (7) The Social Insurance Board shall forward the health data of a person residing in the Republic of Estonia to the other party if the person is applying for the establishment of permanent incapacity for work and the grant of pension for incapacity for work from the other party on the basis of a bilateral international agreement.
[RT I, 17.12.2015, 1 - entry into force 01.07.2016]

 (8) In order to forward the health data specified in subsection (7) of this section with the consent of the person, a person who has completed medical training shall have access to the following information in the health information system:
 1) information concerning the submitter of information;
 2) information concerning out-patient visits and hospitalisations;
 3) information concerning medicinal products.
[RT I, 17.12.2015, 1 - entry into force 01.07.2016]

 (9) The list of information concerning a person in the health information system specified in subsection (8) of this section and the periods for inquiries shall be established by a regulation of the minister responsible for the area.

[RT I, 17.12.2015, 1 - entry into force 01.07.2016]

§ 32.  Grant of state pension

 (1) The Social Insurance Board shall make a decision to grant or refuse to grant a state pension within fifteen working days as of the submission of a proper application.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) A state pension shall be granted as of the date of making a pension claim. A pension shall be granted as of an earlier date in the following cases:
 1) an old-age pension as of the date of attaining pensionable age (subsection 7 (1) or (2) or subsection 10 (1) of this Act) if the pension application is submitted within three months after the date of attaining pensionable age;
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 2) a survivor’s pension or national pension shall be granted as of the date of death of the provider or the date of initiation by the police authorities of the procedure for establishing the whereabouts of the missing person, but not more than twelve months before making a pension claim.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (2¹) If a pension claimant submits a pension application before the date of attaining pensionable age, but not earlier than six months before the date of attaining pensionable age, the old-age pension shall be granted as of the date on which the pension right arises.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (3) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (4) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 33.  Pension committee

  [Repealed - RT I 06.12, 2012, 1 - entry into force 01.01.2013]

§ 34.  Decision to grant pension

  [Repealed - RT I 08.07, 2016, 1 - entry into force 01.01.2017]

§ 35.  Pension certificate

  Pensioners shall be granted a pension certificate and the list of information included therein shall be established by a regulation of the minister responsible for the area.

[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 36.  Payment of state pension

 (1) The monetary compensation paid on the basis of this Act shall be paid monthly for the current month pursuant to the procedure provided for in § 28 of the General Part of the Social Code Act, except for a state pension paid as home delivery by post in Estonia at the expense of the pensioner.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) [Repealed – RT I 2008, 48, 264 - entry into force 23.11.2008]

 (3) [Repealed – RT I 2008, 48, 264 - entry into force 23.11.2008]

 (4) A state pension which is granted to a minor in a social welfare institution shall be transferred to the personal bank account of the child.
[RT I, 30.12.2015, 5 - entry into force 01.01.2016]

 (5) On the basis of a reasoned application submitted to the Social Insurance Board, a state pension shall be paid as home delivery by post at the expense of the payer of the pension to a person whose mobility is restricted or who lives in a low density area and whose access to banking services is restricted and who is:
 1) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 2) [repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 3) a person of retirement age.

[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (6) Based on the application specified in subsection (5) of this section, the Social Insurance Board shall make a decision with a period of validity of up to one year. The Social Insurance Board may make a decision on the basis of the application specified in subsection (5) of this section with a longer period of validity if this is necessary due to the nature of the reasons proceeding from which the Social Insurance Board makes the decision on the basis of the application specified in subsection (5) of this section. The Social Insurance Board shall make the decision on the basis of the application specified in subsection (5) of this section within ten working days after the submission of the corresponding application.

[RT I 2008, 48, 264 - entry into force 23.11.2008]

§ 37.  Total amount of state pension

  Payment of a state pension pursuant to this Act shall be based on the total amount of the state pension, which is comprised of the state pension granted to the person and the pension supplements.

§ 38.  Rounding of pension amounts

  Upon payment of a state pension and calculation of the amount set off against a pension, amounts shall be rounded to the accuracy of one cent.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 39.  Instructions for grant, recalculation and payment of state pensions

  The minister responsible for the area shall establish the instructions for the grant, recalculation and payment of state pensions.

§ 40.  Resolution of disputes

 (1) If a person disagrees with an administrative act of the Social Insurance Board, he or she has the right to file a challenge with the Social Insurance Board within thirty days after the date on which the person becomes or should become aware of the challenged administrative act or to directly file an appeal with an administrative court under the conditions and pursuant to the procedure provided by the Code of Administrative Court Procedure. In order to resolve challenges, the Social Insurance Board may form committees and to involve experts if necessary. A challenge shall be resolved within sixty days after registration of the challenge by the Social Insurance Board.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (2) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (3) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

Chapter 10 SPECIFICATIONS OF CALCULATION, GRANT AND PAYMENT OF STATE PENSIONS  

§ 41.  Grant and payment of survivor's pension

 (1) A common pension shall be granted to family members specified in § 20 of this Act and persons deemed to be equal to them who have the right to receive a survivor’s pension or national pension upon the loss of a provider.

 (2) On the basis of an application of a family member, his or her share shall be separated from the survivor’s pension or the national pension paid upon the loss of a provider, and paid to him or her separately.

 (3) Upon the remarriage of a widow, widower or divorced person, a survivor’s pension or national pension granted to him or her on the basis of the death of his or her spouse or in the case provided in subsection 20 (5) of this Act shall be retained for twelve months.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (4) Persons who are under 18 years of age, or orphans who are under 24 years of age, and who are enrolled in daytime study or, for medical reasons, in another form of study at an upper secondary school or vocational educational institution, or in full-time study at a university or institution of applied higher education, or orphans who are older if they were established to have partial or no work ability pursuant to the Work Ability Allowance Act before they attained 18 years of age (or if they are students enrolled in daytime study or, for medical reasons, in another form of study, or full-time study, before they attained 24 years of age) have the right, taking into account the provisions of subsection 21 (2) and clause 23 3) of this Act, to receive two survivor’s pensions or two national pensions or both a survivor’s pension and a national pension concurrently, depending on the pension qualifying period of their parents.
[RT I, 13.12.2014, 1 - entry into force 01.07.2016 (entry into force changed - RT I, 17.12.2015, 1)]

§ 42.  Specifications of calculation and payment of state pensions if pension rights arise pursuant to international agreement

 (1) The state pension of persons who have not completed the pension qualifying period earned in Estonia required for the grant of a state pension, but who have the right to a pension on the basis of an international agreement, shall be calculated pursuant to the procedure provided for in this section.
[RT I 2006, 49, 370 - entry into force 20.11.2006]

 (2) In case of old-age pension, the theoretical amount of old-age pension shall be calculated at first, in particular taking account of all pension qualifying periods earned in Estonia and in the Contracting Party as if they had been completed in Estonia. For calculating the actual amount of old-age pension, the theoretical amount of old-age pension shall be multiplied by the number of years in the pension qualifying period earned in Estonia and shall be divided by the number of years of the total pension qualifying period earned in all Contracting Parties, including in Estonia.
[RT I 2006, 49, 370 - entry into force 20.11.2006]

 (3) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (4) The theoretical amount of old-age pension which is the basis for calculation of a survivor's pension is calculated pursuant to the procedure provided for in subsection 21 (1) of this Act. For calculating the actual amount of old-age pension, the theoretical amount of old-age pension shall be multiplied by the number of years in the pension qualifying period earned in Estonia and shall be divided by the number of years of the total pension qualifying period earned in all Contracting Parties, including in Estonia. A survivor’s pension shall be calculated pursuant to subsection 21 (2) of this Act from the actual amount of old-age pension calculated on the basis of this subsection.

[RT I 2006, 49, 370 - entry into force 20.11.2006]

 (5) If the total amount of old-age pensions paid to persons residing in Estonia specified in subsection (1) of this section pursuant to international agreements by Contracting Parties together with the pensions paid by Estonia is less than the national pension rate, an amount which covers the difference between the national pension rate and pensions received pursuant to international agreements shall be paid to the person on the basis of his or her application.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (5¹) A survivor's pension shall not be granted on the basis of this Act to a person who receives an old-age pension, pension for incapacity for work or national pension from a Contracting Party. Payment of a granted survivor's pension shall be terminated if the Contracting Party grants an old-age pension, pension for incapacity for work or national pension to the person.
[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

 (6) On the basis of an application of a person, pension may be paid once per quarter or once every half year.
[RT I 2006, 49, 370 - entry into force 20.11.2006]

 (7) A non-resident in Estonia shall submit a certificate concerning his or her residence certified by the authority of the state of residence to the Social Insurance Board not later than by 1 March of each year. Upon failure to submit a certificate within the prescribed term, payment of pension shall be suspended as of 1 April of the current year. If a certificate is submitted later, payment of pension shall continue retroactively as of suspension of the payment of pension.
[RT I, 06.12.2012, 1 - entry into force 01.05.2013]

 (8) The Social Insurance Board shall not apply the provisions of subsection (7) of this section:
 1) to a non-resident Estonian citizen;
 2) to a non-resident who files a claim "Certification of residence and beneficial owner of income for application of international agreement" certified by the competent authority of the state of residence;
 3) if a corresponding agreement on exchange of data has been entered into with the competent authority of the state of residence of a non-resident.
[RT I, 06.12.2012, 1 - entry into force 01.05.2013]

§ 42¹.  Calculation and payment of old-age pension upon employment by institutions of European Community

 (1) If a person commences work in an institution of the European Community, the Social Insurance Board shall organise the calculation and totalization of the old-age pension for the insured person, and entry of the total amount in the pension scheme of the institution of the European Community pursuant to the procedure provided by subsection 12 (2¹) of this Act.

 (2) The expenses related to the transfer of the pension funds provided for in subsection (1) of this section shall be covered from the state budget.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

§ 43.  Payment of state pensions to persons who are employed

 (1) Survivor's pension and national pension shall not be paid to persons specified in clause 22 (1) 3) of this Act who are employed, except to children under 18 years of age, or to students under 24 years of age enrolled in daytime study or, for medical reasons, in another form of study, or full-time study.

[RT I 2010, 41, 240 - entry into force 01.09.2010]

 (1¹) An early retirement pension shall not be paid if the person continues working until he or she attains pensionable age as provided in § 7 of this Act.

 (2) Within the meaning of this Act, employment means earning of income which is subject to social tax on the basis of an employment contract, contract of service or civil law contract or operating as an undertaking.

 (3) The employment of the persons specified in clause 22 (1) 3) of this Act and subsection (1¹) of this section shall be certified by the data in the employment register provided for in § 25¹ of the Taxation Act.

[RT I, 16.04.2014, 3 - entry into force 01.07.2014]

§ 44.  Payment of state pension on basis of authorisation document

 (1) A state pension shall be paid on the basis of an authorisation document during the period of validity of such document.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (2) The authorisation document shall be notarised or certified by the head of the in-patient medical institution in which the pensioner is treated.

 (3) If no term is set out in an authorisation document, it is valid for one year as of the date of certification.

 (4) If an authorisation document is certified by the head of an in-patient medical institution, it is valid for the one-time receipt of unreceived pension for a period of up to six months.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

§ 45.  Unreceived pension

 (1) If a pension which is paid by post is not withdrawn for at least two months, payment of the pension shall be suspended. After submission of the corresponding application and a document provided for in subsection 2 (2) or § 4 of the Identity Documents Act, the pension shall be paid retroactively.

[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (3) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (4) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (5) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 46.  Payment of state pensions to sentenced pensioners

 (1) If a court convicts a pensioner and punishes him or her by imprisonment, payment of his or her state pension shall be suspended during imprisonment.

 (2) If a person is taken into custody as a preventive measure, payment of his or her state pension shall be suspended for the time the person is held in custody. The pension shall be paid to the person retroactively after a court judgment enters into force if the person is acquitted or is not subject to punishment by imprisonment.

 (3) If a court orders the administration of coercive medical treatment with regard to a pensioner, during the period such treatment is administered his or her pension shall be paid at one half of the national pension rate, but in the amount not exceeding the pension granted, recalculated and indexed for the person.

 (4) If a pensioner specified in subsections (1)–(3) of this section has dependants listed in clause 20 (2) 1) of this Act, his or her state pension shall be paid to them in the following amounts:
 1) in the case of one dependant, 25 per cent of the pension;
 2) in the case of two dependants, 50 per cent of the pension;
 3) in the case of three or more dependants, 75 per cent of the pension.

 (5) If the pension paid pursuant to subsections (3) and (4) of this section exceeds the amount of the pension granted, recalculated and indexed for the person, the pension shall be paid in the granted, recalculated and indexed amount.

[RT I 2002, 53, 338 - entry into force 01.07.2002]

§ 46¹.  Suspension of payment of pension to missing person

 (1) If a pensioner is missing or declared to be a fugitive because he or she evades service of imprisonment, payment of the pension shall be suspended after one month has passed from the receipt of such information from the police.

 (2) Upon establishing the whereabouts of the pensioner, pension shall be paid retroactively as of the suspension of payment of the pension. Pension shall not be paid retroactively if the person has been declared to be a fugitive because he or she evades service of imprisonment.

 (3) If a person is missing and the right of his or her dependants to receive survivor's pension has arisen on the basis of subsection 20 (5) of this Act, the pension paid retroactively to the person shall be reduced by the survivor's pension paid to the dependants.

[RT I, 22.06.2016, 1 - entry into force 02.07.2016]

§ 47.  Set-off against state pension

  [RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (1) Set-offs against state pensions may be made pursuant to the procedure provided for in the General Part of the Social Code Act only:
 1) on the basis of a decision subject to enforcement pursuant to the Code of Enforcement Procedure;
 2) on the basis of a decision of the Social Insurance Board to reclaim pension amounts or pensioner’s living alone allowance overpaid to a pensioner;
[RT I, 06.12.2016, 1 - entry into force 01.01.2017]
 3) in the case specified in subsection 14 (3) of the Family Benefits Act.

 (2) The amount set off against a state pension shall be calculated based on the pension prescribed for the pensioner, on the basis of the total amount of the state pension.

 (3) On the basis of a decision subject to enforcement pursuant to the Code of Enforcement Procedure, up to 50 per cent of a state pension may be set off, but at least 50 per cent of the national pension rate shall be retained for a pensioner.

 (4) On the basis of a decision of the Social Insurance Board, up to 20 per cent of a state pension may be set off in addition to amounts set off pursuant to subsection (3) of this section, but at least 50 per cent of the national pension rate shall be retained for a pensioner.

 (5) With the written consent of the pensioner, an amount which exceeds the limits provided for in subsection (4) of this section may be set off against the state pension on the basis of a decision of the Social Insurance Board.

 (6) The Social Insurance Board shall transfer an amount set off pursuant to subsection (3) of this section to the official bank account of a bailiff or the bank account of a tax administrator.

[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 48.  Recovery of pension amounts

 (1) If a person does not have the right to receive state pension or if payment of a state pension terminates before an amount set off on the basis of a decision of the Social Insurance Board is fully recovered, the Social Insurance Board shall reclaim the state pension paid to the person without basis pursuant to the procedure provided for in the General Part of the Social Code Act.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (1¹) If the Social Insurance Board issues a precept to a person concerning the commencement of compulsory enforcement upon failure to perform the obligation to comply with the recovery but there is no information concerning the address of the person or the person does not live at the address known and the actual location of the person is unknown and the precept cannot be delivered in any other manner provided for in the General Part of the Social Code Act, the conclusion of the precept shall be published in the official publication Ametlikud Teadaanded.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (3) If a person loses his or her provider due to a traffic accident, the Social Insurance Board shall collect the paid survivor’s pension or national pension from an insurer engaging in motor third party liability insurance if the right of claim against the insurer dealing in motor third party liability insurance arises for the person who receives state pension.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

Chapter 11 ORGANISATION OF STATE PENSION INSURANCE  
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 49.  Organisation of state pension insurance

  State pension insurance shall be organised by the Social Insurance Board which is in the area of government of the Ministry of Social Affairs.

§ 50.  State Pension Insurance Register

  [Repealed - RT I 08.07, 2016, 1 - entry into force 01.01.2017]

§ 51.  Purpose and chief processor of register

  [Repealed - RT I 08.07, 2016, 1 - entry into force 01.01.2017]

§ 52.  Entries in register and receiving data from register

  [Repealed - RT I 08.07, 2016, 1 - entry into force 01.01.2017]

§ 53.  Maintenance of records on social tax paid or calculated, years of pensionable service and accumulation period and grant and payment of pensions

  [RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (1) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (1¹) [Repealed - RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2) On the basis of data in the social protection information system, records on social tax paid or calculated for a person, years of pensionable service and accumulation period and the grant and payment of pensions shall be maintained.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (2¹) In addition to the data specified in subsection (2), records shall be maintained, based on the data in the social protection information system, concerning a person with regard to the funds received from the pension scheme of the institutions of European Communities and the accumulation period calculated based on such funds.

[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

 (3) On the basis of data in the social protection information system, the insurance component of every insured person and the sum of the insurance components shall be calculated once a year pursuant to the procedure provided for in § 12 of this Act.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 54.  Notification of insured persons

 (1) By 10 April each calendar year, insured persons are enabled access through an electronic channel allowing unequivocal identification of a person to the following data concerning the previous calendar year:
 1) social tax calculated for or paid by them;
[RT I, 06.12.2012, 1 - entry into force 01.01.2013]
 2) the sum of the pension insurance part of their social tax;
 3) the sum of the state pension insurance part of social tax;
 4) the amount of the insurance component;
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]
 5) the sum of insurance components;
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]
 6) the accumulation period;
 7) average amount of pension insurance part of individually registered social tax.
[RT I, 10.03.2015, 5 - entry into force 01.07.2016]

 (2) A notice with the data specified in subsection (1) of this section shall be issued to insured persons at their request.
[RT I 2004, 16, 120 - entry into force 01.04.2004]

Chapter 12 STATE PENSION INSURANCE FUNDS  

§ 55.  State pension insurance funds

  Funds for financing state pension insurance shall be prescribed in the annual state budget.

§ 56.  Sources for covering expenditure prescribed for state pension insurance

 (1) The sources for covering expenditure prescribed for state pension insurance in the state budget are:
 1) the pension insurance part of social tax according to the Social Tax Act and the balance of such funds which remain unused at the end of the budgetary year;
 2) fines according to the Employees Disciplinary Punishments Act and the balance of such funds which remain unused at the end of the budgetary year;
 3) funds received into the state budget from the recovery of pension amounts and the balance of such funds which remain unused at the end of the budgetary year;
 4) allocations prescribed from the state budget for specific purposes that are paid into the pension insurance reserve and emergency reserve, and the balance of such funds which remain unused at the end of the budgetary year;
 5) other funds prescribed in the state budget for payment of pensions;
 6) funds prescribed in the state budget for incurring the expenditure specified in subsection 57 (2) of this Act.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (1¹) In addition to the funds specified in subsection (1) of this section, the amounts received into the state budget pursuant to the procedure provided by the Council Regulation specified in subsection 12 (2¹) of this Act shall be used as a source for covering the expenditure prescribed for state pension insurance. If an insured person is an obligated person within the meaning of the Funded Pensions Act, then 16/22 of the amount received shall be transferred to the state pension insurance funds.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (2) [Repealed – RT I 2007, 62, 395 - entry into force 01.01.2008]

§ 57.  Expenditure prescribed for state pension insurance

 (1) Only the following expenditure shall be financed out of the sources for covering expenditure prescribed for state pension insurance specified in clauses 56 (1) 1)–5) and subsection (1¹) of this Act:
 1) old-age pensions (including old-age pensions under favourable conditions, early retirement pensions and deferred old-age pensions), survivor's pensions and pensions retained in their former amounts provided for in this Act, except pension supplements provided for in § 24 of this Act and parts of pensions which correspond to the years of pensionable service provided for in subsection 28 (3) of this Act;
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]
 2) pensions provided for in the Superannuated Pensions Act and the Old-Age Pensions under Favourable Conditions Act;
 3) payments prescribed on the basis of the Council Regulation specified in subsection 12 (2¹) of this Act.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (2) All other expenditure arising from this Act shall be financed out of funds specified in clause 56 (1) 6) of this Act.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

 (3) Pensions and pension supplements paid by the Estonian state pursuant to other Acts shall be financed out of funds prescribed by the corresponding Acts.

 (4) If, pursuant to Acts established after adoption of the state budget, the sources for covering expenditure prescribed for state pension insurance decrease or the expenditure increases, additional sources for covering expenditure shall be provided by law.

Chapter 13 IMPLEMENTATION OF ACT  

§ 58.  Previously determined categories of disability

 (1) In the case of persons whose category of disability has been determined for a specified term on the basis of the State Allowances Act and who within such term have not reached the pensionable age, their categories of disability are deemed to correspond to the permanent incapacity for work determined until the expiry of such term and medical examination for incapacity for work shall be conducted in respect of them within the specified term.

 (2) The category of disability of a person shall not be reviewed if the category has been determined for a specified term on the basis of the State Allowances Act and the person attains the pensionable age not later than by 31 March 2003.

 (3) The categories of disability of persons specified in subsection (2) of this section and persons up to the pensionable age whose category of disability has been determined for an unspecified term on the basis of the State Allowances Act are deemed to correspond to the permanent incapacity for work determined until the pensionable age.

 (4) In the cases provided for in subsections (1) and (3) of this section, the following percentages of loss of capacity for work are deemed to correspond to the following categories of disability:
 1) a 100 per cent loss of capacity for work corresponds to Category I disability;
 2) an 80 per cent loss of capacity for work corresponds to Category II disability;
 3) a 60 per cent loss of capacity for work corresponds to Category III disability.

 (5) Persons between the age of 16 and the pensionable age whose category of disability has been determined for an unspecified term on the basis of the State Allowances Act have the right to apply for assessment of work ability pursuant to the procedure provided for in the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (5¹) If a person uses the right provided for in subsection (5) of this section, the decision on determination of the category of disability shall be revoked as of the month following the calendar month of making the decision concerning the assessment of work ability on the basis of the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (6) Except in the cases provided for in subsection (4) of this section, categories of disability are, until 31 March 2003, deemed to correspond to degrees of permanent incapacity for work as follows:
 1) total incapacity for work with a 100 per cent loss of capacity for work corresponds to Category I disability;
 2) partial incapacity for work with an 80 or 90 per cent loss of capacity for work corresponds to Category II disability;
 3) partial incapacity for work with a 40 to 70 per cent loss of capacity for work corresponds to Category III disability.

 (7) For the purposes of subsection 10 (1) of this Act, raising of a disabled child or a person under 18 years of age who is disabled since childhood is deemed to be equivalent to raising of a disabled child who is under 18 years of age.

§ 58¹.  Specifications for increasing deferred old-age pension

  A deferred old-age pension shall not be increased pursuant to the procedure provided for in subsection 8 (3) of this Act for a period:
 1) during which the person does not meet the conditions for the grant of state pensions provided for in subsection 4 (1) of this Act;
 2) during which the person receives a state pension or a pension from another state;
 3) after the person attains the pensionable age before 1 January 2002.
[RT I 2002, 53, 338 - entry into force 01.07.2002]

§ 58².  Differences in recalculation of old-age pension coefficient and permissibility of transfer of pension rights

 (1) A person who meets the conditions provided for in subsection 12 (2¹) of this Act and receives an old-age pension based on the state pension insurance before 1 January 2008 has the right to apply for the recalculation of the pension and the insurance component of the insured person according to the amounts received in the pension insurance funds from the pension scheme of the institutions of the European Communities.

[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (2) The rights provided for in this Act shall extend to all applications for the transfer of pension rights which are submitted after 1 May 2004.
[RT I 2007, 62, 395 - entry into force 01.01.2008]

§ 59.  Calculation of accumulation periods and insurance parts of state pensions for years 1999, 2000 and 2001

  [RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (1) For calendar years 1999, 2000 and 2001, one year towards the accumulation period of an insured person shall be calculated for the insured person for whom individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum monthly wage for a year.

 (2) For calendar years 1999, 2000 and 2001, upon calculation of the accumulation period, the individually registered social tax of an insured person for a calendar year shall be compared to the social tax calculated on the minimum monthly wage for January of the corresponding year multiplied by twelve.

 (3) For calendar years 1999, 2000 and 2001, if social tax is paid by the state pursuant to § 6 of the Social Tax Act, the accumulation period shall be calculated to be equivalent to payment of social tax on the minimum monthly wage.

 (4) In order to calculate the insurance component of an insured person for the calendar years 1999, 2000 and 2001, the amounts of the individually registered social tax calculated for the insured person shall be totalled and divided by the average amount of the individually registered social tax in the given calendar year.
[RT I, 10.03.2015, 5 - entry into force 01.04.2015]

 (5) The Government of the Republic shall approve the average amount of individually registered social tax of the year 2001 not later than on 20 March 2002 and this shall be implemented in the grant and recalculation of pensions for a term commencing on 1 April 2002.

 (6) If a pension is granted with a commencement date before 1 April 2002, the average amount of individually registered social tax of the year 2001 which is approved by the Government of the Republic shall be taken as the basis for calculation of the pension.

§ 60.  Retention of previously granted pensions

 (1) The payment of pensions granted before the entry into force of this Act shall be continued in the former amount until the specified date in the following cases:
 1) for pensioners whose pension calculated pursuant to this Act proves to be smaller than the pension previously paid;
 2) for pensioners whose category of disability has not been reviewed or whose percentage of loss of capacity for work is determined to be higher than or equal to the percentage determined previously, unless the pension calculated pursuant to this Act proves to be greater than the pension previously paid;
 3) for pensioners for whom the right to receive a state pension does not arise pursuant to this Act, except in the case provided for in subsection (2);

 (2) The type of pensions of old-age pensioners who were granted a state pension before the entry into force of this Act and for whom the right to receive an old-age pension does not arise pursuant to this Act shall be retained and the pensions shall be calculated pursuant to the provisions of § 11 of this Act. If a calculated pension proves to be smaller than the pension previously paid, payment of the pension shall continue in the former amount.

 (2¹) The payment of a pension to one parent, or the widow, widower or guardian who is raising a child, brother, sister or grandchild of the provider who is from 3 to 14 years of age in his or her family and to whom a survivor's pension has been paid during the period from 1 April 2000 to 31 December 2001 shall be continued in the former amount for the specified term.
[RT I 2002, 53, 338 - entry into force 01.07.2002]

 (3) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (4) [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

 (5) [Repealed – RT I 2003, 88, 589 - entry into force 01.01.2004]

§ 61.  Value of base amount of pension, year of pensionable service and national pension rate

 (1) From 1 January to 31 March 2002, the base amount of a pension shall be 410 kroons, the value of a year of pensionable service shall be 27 kroons 85 cents and the national pension rate shall be 800 kroons.

 (1¹) From 1 July 2002 to 31 March 2003, the base amount of a pension shall be 444 kroons 44 cents, the value of a year of pensionable service shall be 31 kroons 69 cents and the national pension rate shall be 867 kroons 20 cents.

 (1²) From 1 July 2003 to 31 March 2004, the base amount of a pension shall be 577 kroons 33 cents.

 (1³) On 1 April 2004, the base amount of pension is additionally increased after indexation by 50 kroons and the value of a year of pensionable service is increased by 1.13 kroons.

 (1⁴) On 1 July 2005, the base amount of pension is increased by 150 kroons, the value of a year of pensionable service is increased by 3.02 kroons and the national pension rate is increased by 100 kroons.

 (1⁵) On 1 April 2006, the base amount of pension is increased after indexation by 60 kroons and the value of a year of pensionable service is increased by 1.53 kroons.

 (1⁶) On 1 July 2007, the base amount of pension is increased by 250 kroons and the national pension rate is increased by 150 kroons.
[RT I 2007, 40, 286 - entry into force 23.06.2007]

 (2) The value of the base amount of a pension, a year of pensionable service and the national pension rate for the following periods shall be calculated pursuant to the procedure provided for in § 26 of this Act.

§ 61¹.  Enrolment in daytime study

 (1) Instead of the requirement for enrolment in full-time study, provided in clause 20 (2) 1), subsection 41 (4) and 43 (1) of this Act, persons admitted to educational institutions before the academic year 2003/2004 are required to enrol in daytime study.

[RT I, 02.07.2013, 1 - entry into force 01.09.2013]

 (2) Instead of the requirement for enrolment in daytime study at a vocational educational institution provided for in clause 20 (2) 1) and subsection 43 (1) of this Act, persons admitted to vocational training before the academic year 2012/2013 are required to enrol in full-time study or another form of study for medical reasons.

[RT I, 02.07.2013, 1 - entry into force 01.09.2013]

§ 61².  Grant and recalculation of pension retroactively

  Pension shall be granted to or recalculated for pensioners who have the right to a pension, pension supplement or additional pension qualifying period upon entry into force or amendment of the Act after the date of entry into force of the Act or the entry into force of the relevant amendment if the application and the documents necessary for the grant of the pension have been submitted within six months after the entry into force of the Act or the relevant amendment. If an application is submitted later, pension shall be granted in accordance with subsection 32 (2) of this Act or recalculated in accordance with subsection 25 (1) of this Act.

[RT I, 02.07.2012, 2 - entry into force 01.01.2013]

§ 61³.  Allocations prescribed in state budget for specific purposes paid into pension insurance reserve and emergency reserve

  The funds allocated by state budgets to the pension insurance reserve and emergency reserve before 1 January 2008 are also deemed to be the allocations prescribed in the state budget for specific purposes which are paid into the pension insurance reserve and emergency reserve specified in clause 56 (1) 4) of this Act.

[RT I 2007, 62, 395 - entry into force 01.01.2008]

§ 61⁴.  Payment of pensions

 (1) State pensions shall be paid pursuant to the procedure provided by subsections 36 (1) and (5) of this Act as of 1 February 2009.

[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (2) Until 1 February 2009, a state pension shall be paid monthly for the current month through the Social Insurance Board either to the bank account of the pensioner or by post at the expense of the payer as requested by the pensioner. A state pension shall be transferred to the account of a pensioner in a bank in a foreign state at the expense of the recipient.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (3) As of 1 February 2009, a state pension granted before 1 February 2009 shall be paid pursuant to the procedure provided in § 36 of this Act.
[RT I 2008, 48, 264 - entry into force 23.11.2008]

 (4) If the pensioner has not notified the Social Insurance Board of his or her bank account number or submitted an application in accordance with clause 36 (1) 2) and it is therefore not possible to pay the pension pursuant to the procedure provided for in § 36 of this Act, payment of the pension shall be suspended as of 1 February 2009. After submission of the appropriate application and the document provided for in subsection 2 (2) of the Identity Documents Act, the pension shall be paid retroactively.

[RT I, 06.12.2012, 1 - entry into force 01.01.2013]

 (5) Under the conditions and pursuant to the procedure provided for in subsections 36 (5) and (6) of this Act, state pensions shall also be paid to persons with a profound disability receiving pension for incapacity for work and persons with a profound disability declared permanently incapacitated for work receiving national pension.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61⁵.  Obligation of analysis

  The Government of the Republic shall prepare an analysis by the year 2019 concerning the effect of the pensionable age provided for in this Act on the financial and social sustainability of the pension insurance system and, if necessary, submit a proposal to the Riigikogu on changing of the pensionable age provided for in § 7 of this Act or establishing of a flexible pensionable age.
[RT I 2010, 18, 97 - entry into force 16.05.2010]

§ 61⁶.  Specifications for transition to the euro

  The base amount of pension, value of a year of pensionable service and the national pension rate shall be converted into euros according to the euro conversion rate of the Estonian kroon which is determined by the Council of the European Union in accordance with Article 140(3) of the Treaty on the Functioning of the European Union.
[RT I 2010, 22, 108 - entry into force 01.01.2011]

§ 61⁷.  Implementation of subsections 16 (10³) and (10⁴)

  [Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61⁸.  Specifications upon payment of pension supplement

 (1) The pension supplement provided for in clause 24 (1¹) 1¹) of this Act shall be paid without the agreement specified in subsection (7) of the same section to a person who receives pension upon entry into force of this section and whose years of pensionable service include the pension qualifying period provided for in clause 28 (2) 12) of this Act.

 (2) A person specified in clause 24 (11) 1¹) of this Act who does not consent to the payment of the pension supplement to the person whose years of pensionable service include the pension qualifying period provided for in clause 28 (2) 12) of this Act may submit an application to the Social Insurance Board on the basis of which payment of the pension supplement is terminated to the person specified in subsection (1) of this section. The pension supplement shall be continued to be paid pursuant to the agreement provided for in subsection 24 (7) of this Act to one person specified in clause (1¹) 1¹) of the same section.
[RT I, 02.07.2012, 2 - entry into force 01.01.2018, entry into force changed [RT I, 11.07.2014, 2]]

§ 61⁹.  Application of this Act in connection with entry into force of the Work Ability Allowance Act

 (1) A person who has been declared permanently incapacitated for work after 1 July 2010 and a person specified in subsection 58 (3) of this Act shall have the right to apply for an examination or re-examination for establishment of permanent incapacity for work provided for in this Act from 1 July 2016 until 31 December 2016.

 (2) As of 1 July 2016, a person has the right to receive a pension for incapacity for work or a national pension on the basis of incapacity for work provided for in this Act if the person has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work and the person complies with other requirements for receiving a pension for incapacity for work or a national pension on the basis of incapacity for work provided for in this Act.

 (3) Chapters 3 and 9 of the wording of this Act in force before 1 July 2016 and implementing provisions issued on the basis thereof shall apply to a person who has the right to receive a pension for incapacity for work on the basis of a bilateral international agreement entered into by the Republic of Estonia and who is residing in the territory of the other party, until the amendment of the international agreement. If a person settles in the Republic of Estonia from the territory of the other party, payment of the pension for incapacity for work to the person shall continue until the expiry of the term of permanent incapacity for work.

 (4) Subsection 16 (11) of the wording of this Act in force before 1 January 2016 shall apply to a person who applies for an examination for establishment of permanent incapacity for work together with determination of the degree of severity of disability until 31 December 2016.

 (5) The wording of this Act in force before 1 July 2016 shall apply upon retroactively establishing the disability of a disabled child or a person under 18 years of age who is disabled since childhood.
[RT I, 17.12.2015, 1 - entry into force 01.07.2016]

§ 61¹⁰.  Grant of survivor's pension to person who is permanently incapacitated for work

  The condition provided for in § 20 and subsection 41 (4) of this Act concerning partial or no work ability established on the basis of the Work Ability Allowance Act is also met if the person has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work on the basis of this Act or whose category of disability determined for an unspecified term on the basis of the State Allowances Act is deemed to correspond to the permanent incapacity for work determined until the pensionable age pursuant to § 58 of this Act.

[RT I, 17.12.2015, 1 - entry into force 01.07.2016]

§ 61¹¹.  Requirement for pension qualifying period and amount of old-age pension of person who is declared permanently incapacitated for work

 (1) In the case of a person who has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work, the requirement for a pension qualifying period provided for in subsection 7 (2²) of this Act shall be reduced by one year for each three years during which the person had been established to have permanent incapacity for work.

 (2) The condition of no work ability provided for in subsection 11 (5¹) of this Act is deemed to be complied with also in the case of a person who has been declared permanently incapacitated for work with a 100 per cent loss of capacity for work.

 (3) The condition of partial work ability provided for in subsection 11 (5²) of this Act is deemed to be complied with also in the case of a person who has been declared permanently incapacitated for work with a 40 to 90 per cent loss of capacity for work.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹².  Processing of applications for examination for establishment of permanent incapacity for work and applications for pension for incapacity for work

 (1) Applications for the examination for establishment of permanent incapacity for work submitted before 1 January 2017 shall be reviewed and permanent incapacity for work shall be established on the basis of the version of this Act hitherto in force.
[RT I, 17.12.2015, 1 - entry into force 01.01.2017]

 (2) An application for pension for incapacity for work of a person who has been declared permanently incapacitated for work as a result of an examination for establishment of permanent incapacity for work specified in subsection (1) of this section submitted before 1 January 2017 shall be reviewed and a pension for incapacity for work shall be granted on the basis of the version of this Act hitherto in force.

[RT I, 17.12.2015, 1 - entry into force 01.01.2017]

 (3) If a person disagrees with the results of an examination for establishment of permanent incapacity for work by the Social Insurance Board, the person shall file a challenge with the Social Insurance Board pursuant to the procedure provided for in § 40 of this Act. The Social Insurance Board shall conduct a further examination if necessary. A challenge shall be resolved within sixty days after registration of the challenge by the Social Insurance Board. If a person disagrees with a decision on the challenge, he or she has the right to file an appeal with an administrative court under the conditions and pursuant to the procedure provided by the Code of Administrative Court Procedure.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹³.  Decisions concerning previously established permanent incapacity for work

 (1) On the date of application for re-examination set out in the results of the examination for establishment of permanent incapacity for work, a person may contact the Estonian Unemployment Insurance Fund for the assessment of work ability pursuant to the procedure provided for in the Work Ability Act unless otherwise provided for in this Act.

 (2) A person has the right to contact the Estonian Unemployment Insurance Fund for the assessment of work ability pursuant to the procedure provided for in the Work Ability Act before the date of re-examination set out in the results of the examination for establishment of permanent incapacity for work.

 (3) The results of the examination for establishment of permanent incapacity for work obtained on the basis of this Act shall be declared invalid as of the month following the calendar month of making the decision concerning the assessment of work ability on the basis of the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁴.  Previously granted pensions for incapacity for work and national pensions

 (1) For the purposes of this Act and other Acts, pension for incapacity for work is also deemed to be state pension.

 (2) Subsection 48 (3) of this Act shall also apply to the reclamation of amounts of pensions for incapacity for work and national pensions paid to persons declared permanently incapacitated for work.

 (3) Pensions for incapacity for work shall also be financed out of the sources for covering expenditure prescribed for state pension insurance specified in clauses 56 (1) 1)–5) and subsection (1¹) of this Act.

 (4) Pension for incapacity for work or national pension on the basis of permanent incapacity for work shall be paid upon application therefor to a person specified in subsection 58 (3) of this Act in the determined amount until the person attains pensionable age. Chapters 1 and 6–13 of this Act shall apply to granted pensions for incapacity for work and national pensions on the basis of incapacity for work unless otherwise provided for in this Act.

 (5) Pension for incapacity for work or national pension on the basis of incapacity for work shall be paid upon application therefor to a person declared permanently incapacitated for work on the basis of an application for an examination for establishment of permanent incapacity for work submitted before 1 January 2017 in the determined amount for the specified term. Chapters 1 and 6–13 of this Act shall apply to granted pensions for incapacity for work and national pensions on the basis of incapacity for work unless otherwise provided for in this Act.
[RT I, 17.12.2015, 1 - entry into force 01.01.2017]

 (6) A decision to grant pension made on the basis of a decision on determination of the category of disability or the results of an examination for establishment of permanent incapacity for work specified in subsection 58 (5¹) and § 61¹³ of this Act shall be revoked and the payment of pension shall terminate as of revocation of the decision on determination of the category of disability or the decision concerning the assessment of work ability.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁵.  Continuation of payment of pension for incapacity for work and national pension based on incapacity for work

 (1) The results of the examination for establishment of permanent incapacity for work of a person shall be extended without establishment of permanent incapacity for work and payment of granted pension for incapacity for work and national pension on the basis of incapacity for work and pension supplements shall continue in the previously determined amount if the duration of his or her permanent incapacity for work expires up to 180 days before attaining pensionable age. On the basis of an application of the person, the results of the examination for establishment of permanent incapacity for work of the person shall not be extended.

 (2) Subsection (1) of this section shall apply to persons born between the years 1953 and 1960 if the duration of their permanent incapacity for work expires up to 180 days before the following ages according to the year of birth:

 (3) Chapters 1 and 6–13 of this Act shall apply to pensions for incapacity for work and national pensions on the basis of incapacity for work paid on the basis of this section unless otherwise provided for in this Act.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁶.  Transfer from national pension to pension for incapacity for work and recalculation of previously granted pension for incapacity for work

 (1) A pension for incapacity for work shall be granted on the basis of an application for the period of permanent incapacity for work pursuant to the version of this Act in force until 1 January 2017 to a person declared permanently incapacitated for work to whom national pension has been granted on the basis of incapacity for work on the basis of clause 22 (1) 2) of the version of this Act hitherto in force, if the person has earned the following pension qualifying period in Estonia depending on age by the time of the transfer from national pension to pension for incapacity for work:

[RT I, 17.12.2015, 1 - entry into force 01.01.2017]

 (2) A person to whom pension for incapacity for work has been granted on the basis of clause 18 (1) 2) or in the amount provided for in subsection 18 (3) of the version of this Act in force until 1 January 2017 has the right to apply for recalculation of the pension for incapacity for work pursuant to the provisions of clause 18 (1) 1) and subsection 18 (2) of the version of this Act in force until 1 January 2017 if the pension calculated on the basis of such provisions is higher.

[RT I, 17.12.2015, 1 - entry into force 01.01.2017]

 (3) In the cases provided for in subsections (1) and (2) of this section, a pension supplement provided for in § 24 of this Act shall be added to the pension for incapacity for work, taking into account the provisions of the specified section.

 (4) Compliance with the requirement for a pension qualifying period which grants the right to receive a pension for incapacity for work shall be determined on the basis of unrounded years of pensionable service, taking into account the provisions of this Act concerning calculation of years of pensionable service.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁷.  Transfer from pension for incapacity for work to old-age pension and early retirement pension

 (1) When a person to whom a previously granted pension for incapacity for work is paid until attainment of the pensionable age attains such age, an old-age pension shall be granted to him or her without a pension application.

 (2) In the case specified in subsection (1) of this section, an old-age pension shall be calculated on the basis of the existing pension qualifying period at the time of grant of the old-age pension pursuant to the provisions of § 11 of this Act.

 (3) If an early retirement pension was paid to a person before the grant of a pension for incapacity for work, payment of the early retirement pension shall continue after attaining the pensionable age without a pension application. If payment of the pension for incapacity for work terminates before the person attains the pensionable age, payment of the early retirement pension shall continue without a pension application as of the day following the day of termination of the incapacity for work.

 (4) In the case specified in subsection (3) of this section, the same percentage reduction which was the basis for calculation of the early retirement pension for the first time shall apply upon calculation of the early retirement pension.

 (5) If an old-age pension calculated pursuant to subsection (2) of this section proves to be less than the pension previously paid, the old-age pension shall be paid in the previous amount.

 (6) If a person to whose pension for incapacity for work a pension supplement provided for in § 24 of this Act and subsections 14 (1) and (4) of the Persons Repressed by Occupying Powers Act is transferred to an old-age pension or if payment of the early retirement pension to such person is continued, he or she retains the right to receive the previous pension supplement.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁸.  Specifications upon grant and payment of national pension

 (1) Persons who have attained pensionable age and who were paid the national pension on the basis of permanent incapacity for work until the persons attained pensionable age are also entitled to receive national pension.

 (2) National pension shall be granted to the persons specified in subsection (1) of this section for life.

 (3) The amount of national pension of the persons specified in subsection (1) of this section shall be 100 per cent of the national pension rate.

 (4) The provisions of this Act concerning national pension shall apply to the national pension provided for in this section.
[RT I, 13.12.2014, 1 - entry into force 01.01.2017 (entry into force changed - RT I, 17.12.2015, 1)]

§ 61¹⁹.  Implementation of subsections 13 (3) and (5)

 (1) Regulations established by the Government of the Republic on the basis of subsections 13 (3) and (5) of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.

 (2) The actual and the estimated average amount of the pension insurance part of individually registered social tax entered in the state pension insurance register before 1 January 2017 shall be transferred to the social protection information system on 1 January 2017.
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

Chapter 14 FINAL PROVISIONS  

§ 62. – § 67. [Omitted from this text.]

§ 68.  Entry into force of Act

  This Act enters into force on 1 January 2002.

Chapter 1 GENERAL PROVISIONS 

§ 1.  Scope of application of Act

 (1) This Act provides the definition, types and extent of state pensions, and the conditions and procedure for the grant of state pensions, the organisation of state pension insurance and the bases for calculation of funds for state pension insurance.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) The provisions of the General Part of the Social Code Act apply to the social protection prescribed in this Act, taking account of the specifications provided for in this Act.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 2.  Definition of state pension

  A state pension payable on the basis of this Act is a monthly financial social insurance benefit in the case of old age or loss of a provider which is based on the principle of solidarity and which is paid from the funds allocated for the expenditure prescribed for state pension insurance in the state budget.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 3.  Insured persons

  Insured persons are:
 1) persons who pursuant to the Social Tax Act pay the pension insurance part of social tax or for whom the pension insurance part of social tax must be paid;
 2) persons for whom the right to receive a state pension arises on other bases pursuant to this Act.

§ 4.  Right to receive state pension

 (1) Under the conditions provided for in this Act, state pensions shall be granted and paid to:
 1) permanent residents of Estonia;
 2) aliens residing in Estonia on the basis of temporary residence permits or temporary right of residence;
 3) taking account of the specifications provided for in this Act, persons residing in a foreign state which has not entered into an international agreement with Estonia.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (1¹) A person whose residence is in a foreign state in addition to Estonia has the right to receive state pension under equal conditions with the persons specified in clauses 1 and 2 of subsection 1 of § 4 of this Act if he or she is a resident within the meaning of subsection 1 of § 6 of the Income Tax Act.
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]

 (2) A state pension shall be granted pursuant to this Act unless a person receives a state pension pursuant to other Estonian Acts.

 (3) If an international agreement entered into by the Republic of Estonia contains provisions which differ from the provisions of this Act for the grant or payment of pensions, the international agreement applies.

 (4) If a person resides in a foreign state which has entered into an international agreement with Estonia, pensions within the scope of application of the international agreement shall be paid on the basis of the international agreement.
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]

 (5) A person to whom a pension has been granted on the basis of an international agreement, the pension within the scope of the agreement shall no longer be granted on the basis of this Act.
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]

§ 5.  Types of state pension

  This Act provides for the following state pensions:
 1) old-age pension;
 2) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 3) survivor’s pension;
 4) national pension.

§ 6.  Right to choose type of pension

  Persons who have the right to receive several state pensions shall be granted one state pension of their choice, except in the case provided for in subsection 4 of § 41 of this Act.

Chapter 2 OLD-AGE PENSION  

§ 7.  Right to receive old-age pension

 (1) Persons who have attained 65 years of age and whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 15 years have the right to receive old-age pension.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (1¹) In order to gradually increase the pensionable age, the right of persons born between the years 1953 and 1960 to receive an old-age pension arises, before attaining the age provided for in subsection 1 of this section, at the ages provided as follows:
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

[RT I 2010, 18, 97 – entry into force 01.01.2017]

 (2) In order to gradually make the pensionable age of men and women equal, the right of women born between the years 1944 and 1952 to receive an old-age pension arises, before attaining the age provided for in clause 1 of subsection 1 of this section, at the ages provided as follows:

 (2¹) The age specified in clause 1 of subsection 1 of this section and subsections 11 and 2 of this section is deemed to be the pensionable age unless otherwise provided by another Act.

[RT I 2010, 18, 97 – entry into force 01.01.2017]

 (2²) In the case of a person who has been established to have partial or no work ability on the basis of the Work Ability Allowance Act, the requirement for a pension qualifying period provided for in subsection 1 of this section shall be reduced by one year for each three full years during which the person had been established to have partial or no work ability.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (3) Old-age pensions are granted for life.

§ 7¹.  Pensionable age in 2027–2029

 (1) As of 2027, pensionable age is 65 to which the change in the life expectancy of persons 65 years of age is added.

 (2) Calculation of pensionable age is based on the average life expectancy of men and women 65 years of age published each year by Statistics Estonia.

 (3) The base period for the calculation of pensionable age is from 2018 to 2022 and the reference period is the period of four to eight years before the year for which the pensionable age is calculated.

 (4) Upon calculation of pensionable age for the year t, the average life expectancy of persons 65 years of age during the reference period shall be added to 65 years and the average life expectancy of persons 65 years of age during the base period shall be deducted based on the following formula:

 (5) Pensionable age is calculated to the accuracy of one month. Decimal points of the change in life expectancy are converted into months.

 (6) Pensionable age is established by a regulation of the Government of the Republic by 1 January of each year which enters into force in two years.

 (7) Pensionable age may be increased by not more than three months in a year. Where, according to calculations, pensionable age increases more than three months in a year, the pensionable age of the following years is adjusted by the months not taken into account upon increasing the pensionable age.

 (8) The grant of old-age pension to a person is based on the pensionable age established on the basis of subsection 6 of this section which was in force in the year in which the right of the person to receive old-age pension arose for the first time.

 (9) The grant of old-age pension to a person on the basis of § 9¹ of this Act before attaining the pensionable age is based on the pensionable age established on the basis of subsection 6 of this section which is in force in the year in which the person submits a pension application.
[RT I, 03.01.2019, 1 – entry into force 01.01.2024, § 7¹ in force until 31 December 2029]

§ 8.  Deferred old-age pension

  [Repealed – RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 9.  Early retirement pension

  [Repealed – RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 9¹.  Flexible old-age pension

 (1) A person has the right to receive old-age pension up to five years before and at any time after attaining the pensionable age provided in § 7 or established on the basis of subsection 6 of § 7¹ of this Act (hereinafter flexible old-age pension).
[RT I, 19.12.2020, 1 – entry into force 01.01.2024]

 (2) A person has the right to receive flexible old-age pension before attaining the pensionable age provided in § 7 or established on the basis of subsection 6 of § 71 of this Act as follows:
[RT I, 19.12.2020, 1 – entry into force 01.01.2024]
 1) if the pension qualifying period is at least 20 years, up to one year;
 2) if the pension qualifying period is at least 25 years, up to two years;
 3) if the pension qualifying period is at least 30 years, up to three years;
 4) if the pension qualifying period is at least 35 years, up to four years;
 5) if the pension qualifying period is at least 40 years, up to five years.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (3) A person has the right to receive flexible old-age pension after attaining the pensionable age provided in § 7 or established on the basis of subsection 6 of § 7¹ of this Act whose pension qualifying period provided in Chapter 8 of this Act and earned in Estonia is at least 15 years.
[RT I, 19.12.2020, 1 – entry into force 01.01.2024]

 (4) Flexible old-age pensions are not recalculated as old-age pensions under favourable conditions or pensions granted on the basis of a specific Act.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (4¹) Flexible old-age pension shall not be increased after attaining the pensionable age provided for in § 7 of this Act pursuant to the procedure provided for in § 111 of this Act for a period during which the person receives a state pension or a pension from another state.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (5) Flexible old-age pension shall not be granted to a person who has been granted a pension on the basis of a specific Act or old-age pension under favourable conditions.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 10.  Old-age pension under favourable conditions

 (1) The following persons who have earned the pension qualifying period required for the grant of an old-age pension have the right to receive an old-age pension under favourable conditions:
 1) a parent, parent's spouse, parent’s registered partner, guardian or foster parent who for at least eight years has raised a child under 18 years of age with a moderate, severe or profound disability or five or more children – five years before attaining the pensionable age;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 2) a parent, parent's spouse, parent’s registered partner, guardian or foster parent who has raised four children for at least eight years – three years before attaining the pensionable age;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 3) a parent, parent's spouse, parent’s registered partner, guardian or foster parent who has raised three children for at least eight years – one year before attaining the pensionable age;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 4) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 5) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 6) persons suffering from pituitary dwarfism – at the age of 45.

 (2) If several persons specified in clauses 1–3 of subsection 1 of this section have the right to apply for old-age pension under favourable conditions with respect to the same children, the persons shall agree on who exercises the right to receive old-age pension under favourable conditions. Such agreement shall be expressed by a written consent to waive the exercise of the right to receive the old-age pension under favourable conditions. In the case of waiver by one person or several persons, the years by which a person has the right to receive old-age pension under favourable conditions before attaining the pensionable age shall be divided equally between the remaining entitled persons.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (3) If the persons specified in clauses 1–3 of subsection 1 of this section do not agree on the exercise of the right to receive old-age pension under favourable conditions and several of those persons have the right to receive old-age pension under favourable conditions with respect to the same children, the years by which a person has the right to receive old-age pension under favourable conditions before attaining the pensionable age shall be divided equally between the entitled persons.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (4) Old-age pensions under favourable conditions are granted for life.

§ 11.  Amount of old-age pension

 (1) Old-age pension consists of the following:
 1) the base amount;
 2) a part calculated on the basis of years of pensionable service, the amount of which equals the number of years of pensionable service multiplied by the value of a year of pensionable service;
 3) an insurance part, the amount of which equals the sum of the insurance components of an insured person multiplied by the value of a year of pensionable service;
 4) a joint part, the amount of which equals the sum of half of the insurance components and half of the solidary components multiplied by the value of a year of pensionable service.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (1¹) Calculation of the amount of the insurance part shall be based on the sum of the insurance components which is calculated for the period from 1 January 1999 to 31 December 2020.
[RT I, 19.12.2020, 1 – entry into force 01.01.2021]

 (1²) Calculation of the amount of the joint part shall be based on half of the sum of the insurance components calculated as of 1 January 2021.
[RT I, 19.12.2020, 1 – entry into force 01.01.2021]

 (2) The value of a year of pensionable service is the monetary value of one year of pensionable service, an insurance component and a solidary component of 1.000.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (3) If a pension claimant does not have a pension part provided for in subsection 1 of this section, pension shall be granted on the basis of the existing pension parts.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (4) [Repealed – RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (5) The instructions for the calculation of the insurance component, insurance part and joint part shall be established by the minister in charge of the policy sector.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (5¹) The old-age pension of a person who has been established to have no work ability on the basis of the Work Ability Allowance Act shall be greater than the following old-age pensions:
 1) the old-age pension calculated on the basis of subsection 1 of this section;
 2) the old-age pension if the person has completed thirty years of pensionable service.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (5²) The old-age pension of a person who has been established to have partial work ability on the basis of the Work Ability Allowance Act shall be greater than the following old-age pensions:
 1) the old-age pension calculated on the basis of subsection 1 of this section;
 2) 60 per cent of the old-age pension if the person has completed thirty years of pensionable service.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (6) If the amount of an old-age pension granted to a person is less than the national pension rate, the old-age pension shall be paid to the person at the national pension rate.

§ 11¹.  Application of increase and reduction coefficient upon calculation of old-age pension

 (1) Old-age pension to which pension supplements provided for in § 24 of this Act have been added is increased or reduced depending on the time of retirement, life table of Statistics Estonia and interest rate. Interest rate is the interest rate shown on the current interest rate term structure of the debt securities of the central governments of the euro area countries published by the European Central Bank.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (2) The data concerning the life table and interest rates used upon calculation of the increase and reduction coefficient of old-age pension shall be updated once a year on 1 January.

 (3) The minister in charge of the policy sector shall established by a regulation the conditions and procedure for the calculation of the increase and reduction coefficient of old-age pension.

 (4) Upon the grant of flexible old-age pension to a person, recalculation or suspension of the payment of old-age pension, the Social Insurance Board shall calculate old-age pension pursuant to the procedure provided for in §§ 11 and 24 of this Act and use the increase or reduction coefficient for the calculation of old-age pension.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (5) Increase coefficient of old-age pension is applied where old-age pension is granted after attaining the pensionable age provided in § 7 or established on the basis of subsection 6 of § 7¹ of this Act.
[RT I, 19.12.2020, 1 – entry into force 01.01.2024]

 (6) Reduction coefficient of old-age pension shall be applied if old-age pension is granted in the pensionable age provided for in subsection 2 of § 91 of this Act.

 (7) Increase coefficient of old-age pension shall be applied if the person has suspended the payment of pension or reduced the amount of pension on the basis of § 251 of this Act and the payment continues or the amount of pension is increased later.
[RT I, 19.12.2020, 1 – entry into force 01.01.2021]

 (8) Increase coefficient of old-age pension shall not be applied if the suspension of the payment of pension arises from law.

 (9) The provisions of this section do not apply to the calculation of pension granted on the basis of a specific Act.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 12.  Insurance component of insured person

  [RT I, 10.03.2015, 5 – entry into force 01.04.2015]

 (1) In order to calculate the insurance component of an insured person, the amounts of the state pension insurance part of individually registered social tax calculated for the insured person shall be totalled and divided by the average amount of the pension insurance part of the individually registered social tax in the given calendar year.

[RT I, 10.03.2015, 5 – entry into force 01.04.2015]

 (2) Amounts which are transferred into the state pension insurance funds for an insured person pursuant to § 10 of the Social Tax Act and which are entered in the social protection information system shall be taken into account as the pension insurance part of individually registered social tax. The following shall also be taken into account:
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]
 1) the social tax calculated by the payer of social tax, in the cases provided for in clauses 1–4, 6 and 9 of subsection 1 of § 2 and clause 2 of subsection 1 of § 6 of the Social Tax Act. The social tax calculated, except social tax on the unemployment insurance benefit, in the case provided for in clause 8 of subsection 1 of § 2 of the same Act;
 2) the social tax calculated by the state, local government, other legal person in public law or an artistic association recognised on the basis of the Creative Persons and Artistic Associations Act in the cases provided for in subsections 1–1² of § 6 of the Social Tax Act;

[RT I, 10.01.2014, 2 – entry into force 20.01.2014]
 3) the social tax paid by a sole proprietor, in the cases provided for in clause 5 of subsection 1 of § 2 and § 61 of the Social Tax Act.

[RT I, 02.07.2012, 8 – entry into force 01.08.2012]

 (2¹) Upon calculation of the insurance component and the solidary component of an insured person, amounts which are transferred into the state pension insurance funds for an insured person pursuant to Regulation (EEC, Euratom, ECSC) No 259/68 of the Council laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities and instituting special measures temporarily applicable to officials of the Commission (Staff Regulations of Officials) (OJ L 56, 04.03.1968, p. 1–7) shall be taken into account. The procedure regulating the receipt and keeping records of such amounts shall be established by a regulation of the Government of the Republic.
[RT I, 27.10.2020, 1 – entry into force 01.01.2021]

 (3) The rate of the pension insurance part of social tax provided for in this Act is 20 per cent.

 (4) The amounts of the pension insurance part and the state pension insurance part of social tax shall be rounded to the accuracy of one cent.
[RT I 2010, 22, 108 – entry into force 01.01.2011]

§ 13.  Average amount of pension insurance part of individually registered social tax

 (1) In order to calculate the average amount of the pension insurance part of individually registered social tax, the data on the pension insurance part of individually registered social tax entered in the social protection information system in the given calendar year shall be taken as the basis for the calculation.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) The Government of the Republic shall establish the procedure for calculation of the average amount of the pension insurance part of individually registered social tax.

 (3) The Government of the Republic shall approve the average amount of the pension insurance part of individually registered social tax of the previous calendar year not later than on 20 March of the current year and such average amount shall be implemented in the grant and recalculation of pensions for a term commencing as of 1 April.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017; regulations established by the Government of the Republic on the basis of subsections 3 and 5 of § 13 of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.]

 (4) If a pension is granted with a commencement date before 1 April, the estimated average amount of the pension insurance part of individually registered social tax approved by the Government of the Republic for entry in the social protection information system shall be taken as the basis for calculation of the pension.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (5) The Government of the Republic shall approve the estimated average amount of the pension insurance part of individually registered social tax to be entered in the social protection information system for the next calendar year at least ten calendar days before the beginning of the calendar year.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017; regulations established by the Government of the Republic on the basis of subsections 3 and 5 of § 13 of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.]

§ 13¹.  Solidary component of insured person

 (1) In order to calculate the solidary component of an insured person, the data on the state pension insurance part of individually registered social tax entered in the social protection information system in the given calendar year shall be taken as the basis for the calculation.

 (2) In order to calculate the solidary component, the amounts of the state pension insurance part of individually registered social tax calculated for the insured person shall be totalled and divided by the pension insurance part of individually registered social tax calculated on the minimum wage for January of the corresponding year multiplied by twelve.
[RT I, 19.12.2020, 1 – entry into force 01.01.2021]

 (3) The state pension insurance part of social tax paid on the basis of §§ 6 and 6¹ of the Social Tax Act shall be taken into account as equivalent to payment of the pension insurance part of social tax on the minimum wage.

 (4) [Omitted – RT I, 19.12.2020, 1 – entry into force 01.01.2021]

 (5) The value of a solidary component shall be calculated to the accuracy of three decimal places.

 (6) The value of a solidary component is up to 1,000 for one calendar year.

 (7) The value of a solidary component of persons who have joined mandatory funded pension is up to 0,800 for one calendar year.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

Chapter 3 PENSION FOR INCAPACITY FOR WORK  
[Repealed - RT I, 13.12.2014, 1 - entry into force 01.01.2017 (date of entry into force changed - RT I, 17.12.2015, 1)]

§ 14. – § 19. [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

Chapter 4 SURVIVOR’S PENSION  

§ 20.  Right to receive survivor’s pension

 (1) Upon the death of a provider, family members who were maintained by the provider have the right to receive a survivor’s pension. The right of the provider’s children, parents, widow or widower, or registered partner with whom the registered partnership contract has been terminated due to death, to receive a survivor’s pension does not depend on whether they were maintained by the provider or not.
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]

 (2) Family members who have the right to receive a survivor’s pension are:
 1) a provider’s child, brother, sister or grandchild who is under 18 years of age (or who is under 24 years of age and is a student enrolled in daytime study or, for medical reasons, in another form of study at an upper secondary school or vocational educational institution or a student enrolled in full-time study at a university or institution of applied higher education), or who is older if he or she was established to have partial or no work ability pursuant to the Work Ability Allowance Act before he or she attained 18 years of age (or in the case of a student enrolled in daytime study or, for medical reasons, in another form of study, or in full-time study, before he or she attained 24 years of age). A brother, sister or grandchild has the right to receive a pension if he or she does not have parents with capacity for work;
[RT I, 13.12.2014, 1 – entry into force 01.07.2016 (date of entry into force changed – RT I, 17.12.2015, 1)]
 2) a provider’s parent who is of pensionable age or who has been established to have partial or no work ability pursuant to the Work Ability Allowance Act;
[RT I, 13.12.2014, 1 – entry into force 01.07.2016 (date of entry into force changed – RT I, 17.12.2015, 1)]
 3) a provider’s non-working widow who is pregnant (from the twelfth week of pregnancy);
 3¹) a provider’s non-working registered partner with whom the registered partnership contract has been terminated due to death, who is pregnant (from the twelfth week of pregnancy);
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 4) a provider’s widow or widower or registered partner with whom the registered partnership contract has been terminated due to death, who has been established to have partial or no work ability pursuant to the Work Ability Allowance Act or who is of pensionable age and whose marriage to or registered partnership with the provider had a duration of at least one year;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 5) a provider’s divorced spouse who attained pensionable age or was established to have partial or no work ability pursuant to the Work Ability Allowance Act before the divorce or within three years after the divorce and whose marriage to the provider had a duration of at least twenty-five years;
[RT I, 13.12.2014, 1 – entry into force 01.07.2016 (date of entry into force changed – RT I, 17.12.2015, 1)]
 5¹) a provider’s registered partner with whom the registered partnership contract has been terminated, who has been established to have partial or no work ability pursuant to the Work Ability Allowance Act before termination of the registered partnership contract or before three years have passed from the termination of the registered partnership contract and whose registered partnership with the provider had a duration of at least 25 years;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 6) a parent or guardian of a provider’s child who is not employed and is raising the provider’s child who is under 3 years of age in his or her family.

 (3) Under the conditions provided for in this section, the following also have the right to receive a survivor's pension:
 1) a child whose parent's spouse, registered partner or foster parent is dead and who is not maintained by the parent;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 2) a person who has raised and maintained a child as a parent's spouse or registered partner or as a foster parent for at least eight years.
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]

 (4) The person specified in subsection 2 or 3 of this section shall be granted a survivor’s pension if the provider has by the date of his or her death earned the pension qualifying period which would have been necessary for the grant of an old-age pension (§ 7) or a following pension qualifying period in Estonia depending on age:

[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (4¹) In the case of a provider who had been established to have partial or no work ability on the basis of the Work Ability Allowance Act, the requirement for a pension qualifying period provided for in subsection 4 of this section shall be reduced by one year for each three full years during which the person had been established to have partial or no work ability.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (4²) The requirement for pension qualifying period provided for in subsection 4 of this section for the grant of a survivor's pension shall not apply if the provider died as a result of a work injury or occupational disease identified pursuant to Estonian legislation.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (4³) A person specified in subsection 2 or 3 of this section, whose provider was up to 24 years old on the day of his or her death, shall be granted a survivor’s pension if the provider had lived in Estonia at least one year immediately before his or her death on the bases specified in clause 1 or 2 of subsection 1 of § 4 of this Act, or if the provider had earned the pension qualifying period of at least one year in Estonia.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (5) Under the conditions provided for in this section, a survivor’s pension shall also be granted if the provider is missing and the police authorities have initiated proceedings for establishing the whereabouts of a missing person concerning him or her and the police authorities have failed to establish the whereabouts of the person within 12 months.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (6) A survivor's pension shall be granted for the period during which persons specified in subsection 2 or 3 of this section meet the requirements for receiving a pension.

 (6¹) The studies of the persons specified in clause 2 of subsection 1 of this section are certified by data obtained from the Estonian Education Information System, or by a document certifying the studies presented by the person. In the case of studying in Estonia, if there are discrepancies in the data, the data of the Estonian Education Information System shall take precedence. If there are no data concerning studies in the Estonian Education Information System by the beginning of an academic year, a person of 18 to 24 years of age specified in clause 1 of subsection 2 of this section shall be paid a survivor’s pension from the end of the last month of the academic year until the end of the month in which the new academic year begins.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (6²) A survivor's pension shall be paid pursuant to subsection 5 of this section until the whereabouts of the provider are established or the provider is declared dead but not longer than for a period of five years.

[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (7) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.07.2016 (entry into force changed – RT I, 17.12.2015, 1)]

 (8) A survivor’s pension shall not be granted on the basis of this Act and payment of a granted survivor’s pension shall be terminated if a person receives an old-age pension, a pension for incapacity for work or a national pension from another state.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 21.  Calculation of survivor’s pension

 (1) The greatest of the following old-age pensions shall be the basis for calculation of a survivor's pension:
 1) the old-age pension of the provider calculated on the basis of § 11 of this Act;
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]
 2) the old-age pension if the person has completed thirty years of pensionable service.

 (2) A survivor's pension shall be calculated based on the pension calculated pursuant to subsection 1 of this section at the following rates:
 1) to one family member, 50 per cent;
 2) to two family members, 80 per cent;
 3) to three or more family members, 100 per cent.
[RT I 2004, 16, 120 – entry into force 01.04.2004]

Chapter 5 NATIONAL PENSION  

§ 22.  Right to receive national pension

 (1) The following have the right to receive a national pension:
 1) persons who have attained the pensionable age and who do not have the right to receive old-age pension and who have been permanent residents of Estonia or have resided in Estonia on the bases specified in clauses 1 or 2 of subsection 1 of § 4 for at least five years immediately before making a pension claim;
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]
 2) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 3) persons specified in § 20 of this Act who, in connection with the insufficient pension qualifying period of their provider, do not have the right to receive a survivor's pension, if the provider was a permanent resident of Estonia or had resided in Estonia on the bases specified in clauses 1 or 2 of subsection1 of § 4 for at least one year directly before his or her death;
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]
 4) persons who have attained the pensionable age who are paid a pension retained in the former amount for a specified term pursuant to subsection 1 of § 60 of this Act.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (2) A national pension shall be granted for the following terms:
 1) to persons specified in clauses 1 and 4 of subsection 1 of this section, for life;
 2) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 3) to persons specified in clause 3 of subsection 1 of this section, for the period during which they meet the requirements provided for in § 20 of this Act.

 (3) A national pension shall not be granted and payment of a granted national pension shall be terminated if a person receives a pension from another state.

§ 23.  Amount of national pension

  A national pension shall be calculated at the following rates:
 1) to persons specified in clauses 1 and 4 of subsection 1 of § 22 of this Act, 100 per cent of the national pension rate;
 2) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 3) in the case specified in clause 3 of subsection 1 of § 22 of this Act, 100 per cent of the national pension rate in the case of three or more family members, 80 per cent of the national pension rate in the case of two family members and 50 per cent of the national pension rate in the case of one family member.

[RT I 2004, 16, 120 – entry into force 01.04.2004]

§ 23¹.  Transfer from national pension to pension for incapacity for work

  [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

Chapter 6 PENSION SUPPLEMENTS  

§ 24.  Right to receive pension supplements

 (1) The following pension supplements shall be added to pensions granted pursuant to this Act:
 1) 100 per cent of the national pension rate to participants and widows and widowers of participants in the Estonian War of Independence;
 2) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 3) 10 per cent of the national pension rate to participants in the Second World War and members of the Self-Defence Force.

 (1¹) The following pension supplement shall be added to old-age pensions granted pursuant to this Act and survivor’s pensions calculated on the basis of clause 1 of subsection 1 of § 21 of this Act:
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]
 1) to a parent, parent's spouse, parent’s registered partner, guardian or foster parent for every child who is born between 31 December 1980 and 31 December 2012 and whom they have raised for at least eight years, in the amount of two times the value of a year of pensionable service;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 1¹) to a parent, parent's spouse, parent’s registered partner, guardian or foster parent for every child who is born before 1 January 2013 and whom they have raised for at least eight years, in the amount of 1.5 times the value of a year of pensionable service;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 2) to a parent, parent's spouse, parent’s registered partner, guardian or foster parent, who is born before 1 January 1983 and who is not an obligated person for the purposes of the Funded Pensions Act, for every child who is born between 1 January 2013 and 31 August 2021 and whom they have raised for at least eight years, in the amount of 3.5 times the value of a year of pensionable service;
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]
 3) to a parent, parent's spouse, parent’s registered partner, guardian or foster parent who is not an obligated person for the purposes of the Funded Pensions Act in the first three years of the child's life, for every child who is born on 1 September 2021 or later and whom they have raised for at least eight years, in the amount of 3.5 times the value of a year of pensionable service.
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]

 (2) [Repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]

 (3) If a person has the right to receive several of the pension supplements listed in subsection 1 of this section, one pension supplement of his or her choice shall be granted to such person.

[RT I, 02.07.2012, 2 – entry into force 01.01.2013]

 (4) If a person has the right to receive several of the pension supplements listed in this section, the person shall be paid all pension supplements at the same time, except in the case provided for in subsection 3 of this section.

[RT I, 02.07.2012, 2 – entry into force 01.01.2013]

 (5) The pension supplement specified in clause 1 of subsection 11 of this section shall not be paid if the years of pensionable service have been calculated on the basis of clause 12 of subsection 2 of § 28 for the same child.

[RT I, 02.07.2012, 2 – entry into force 01.01.2013]

 (6) The pension supplement specified in clauses 2 and 3 of subsection 11 of this section shall not be paid if supplementary contributions provided for in § 10 of the Funded Pensions Act have been made for thirty-six months for the same child. If supplementary contributions have been made for less than thirty-six months, the pension supplement specified in clauses 2 and 3 of subsection 1¹ of this section shall be paid in proportion to the number of months for which supplementary contributions have not been made.
[RT I, 27.10.2020, 1 – entry into force 06.11.2020]

 (6¹) A person who had no right to receive supplementary contributions provided for in § 10 of the Funded Pensions Act until the child attained three years of age in proportion to the number of months during which the person was not an obligated person and for which supplementary contributions have not been made has the right to receive the pension supplement specified in the second sentence of subsection 6 of this section.
[RT I, 27.10.2020, 1 – entry into force 06.11.2020]

 (7) If several persons specified in subsection 1¹ of this section have the right to apply for a pension supplement with respect to the same child, the persons shall agree on who exercises the right to receive the pension supplement. Such agreement shall be expressed by a written consent to waive the exercise of the right to receive the pension supplement. If the persons specified in subsection 1¹ of this section do not agree on the exercise of the right to receive the pension supplement, the pension supplement shall be divided equally between the entitled persons. In the case of waiver by one person or several persons, the pension supplement shall be divided equally between the remaining entitled persons.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (8) [Repealed – RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (9) [Repealed – RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (10) The list of the documents necessary for applying for a pension supplement shall be established by a regulation of the minister in charge of the policy sector.

[RT I, 02.07.2012, 2 – entry into force 01.01.2013]

Chapter 7 RECALCULATION, SUSPENSION OF PAYMENT AND INDEXATION OF STATE PENSIONS  
[RT I, 03.01.2019, 1 - entry into force 01.01.2021]

§ 25.  Recalculation of state pension

 (1) State pensions shall be recalculated:
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]
 1) as of 1 April once a year on the basis of data which are entered in the social protection information system and which concern the individually registered social tax of the previous year;
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]
 2) if circumstances arise which require the reduction of the pension, except in the case provided for in clause 1 of this section, as of the first day of the month following the month in which such circumstances arise;
 3) if circumstances arise which require the increase of the pension, as of the date of submission of a corresponding application, except in the case provided for in clause 1 of this section.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (2) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 25¹.  Recalculation and suspension of payment of old-age pension

 (1) A person has the right to choose to be paid old-age pension the amount of which differs from the old-age pension calculated on the basis of § 11 of this Act, taking account of the specifications provided for in § 11¹ of this Act.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (2) The amount of old-age pension may be 50 or 100 per cent of the old-age pension calculated for a person.

 (3) A person may submit an application once per calendar month for an increase or reduction of the old-age pension granted to the person and calculated on the basis of §§ 11 and 11¹ of this Act in the amount provided for in subsection 2 of this section, unless otherwise provided by law.

 (4) A person may submit an application for the suspension of the payment of old-age pension once per calendar month.

 (5) If the payment of old-age pension is suspended, the payment thereof shall continue on the basis of an application of the person.

 (6) The Social Insurance Board shall make the decision on the increase or reduction, suspension or continuation of the payment of old-age pension within five working days after the submission of the corresponding application. The payment of old-age pension is suspended, continued or old-age pension is paid in an increased or reduced amount from the beginning of the following calendar month.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 26.  Indexation of state pensions

 (1) By 1 April of each calendar year, state pensions calculated pursuant to this Act shall be indexed by an index the value of which depends to the extent of 20 per cent of the annual increase of the consumer price index and to the extent of 80 per cent of the annual increase in receipt of the pension insurance part of social tax. The indexing shall be carried out pursuant to the procedure provided by subsection 7 of this section.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (1¹) Upon calculation of the index, the annual increase of the consumer price index shall be multiplied by 0.2, the annual increase in receipt of the pension insurance part of social tax shall be multiplied by 0.8 and the results shall be added together.
[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (2) The annual increase of the consumer price index shall be calculated by dividing the value of the consumer price index of the previous calendar year by the value of the consumer price index of the year before the previous calendar year, on the basis of the value of the consumer price index officially published by Statistics Estonia.

 (3) The annual increase in receipt of the pension insurance part of social tax shall be calculated by dividing the total amount of the pension insurance part of social tax of the previous calendar year by the total amount of the pension insurance part of social tax of the year before the previous calendar year, on the basis of information of the Ministry of Finance concerning the receipt of the pension insurance part of social tax.

 (4) The annual increase of the consumer price index and in the receipt of social tax shall be expressed to the accuracy of three decimal places.

 (5) A state pension shall not be indexed if the value of the index is less than 1.000.
[RT I 2009, 15, 93 – entry into force 01.03.2009]

 (5¹) The Government of the Republic may approve a lower value of the index than the one provided for in subsection 1 of this section if:
 1) the estimated real growth of the gross domestic product of the same year is negative, or
 2) the difference between the expenditure prescribed for state pension insurance specified in subsection 1 of § 57 of this Act and the estimated income from social tax transferred into the state pension insurance funds exceeds 1 per cent of the estimated gross domestic product of the same year.

[RT I 2009, 15, 93 – entry into force 01.03.2009]

 (5²) The Government of the Republic shall add or clear the part of index which was not increased or reduced together with the approval of the new value of the index within five years as of the application of subsection 5 or 5¹ of this section.

[RT I 2009, 15, 93 – entry into force 01.03.2009]

 (6) The Government of the Republic shall approve the index with the value of at least 1.000 and the part of the index to be added or cleared on the basis of subsection 5² of this section not later than by 20 March of the current year.

[RT I 2009, 15, 93 – entry into force 01.03.2009]

 (7) By 1 April of a calendar year, the Social Insurance Board shall calculate the national pension rate, new values of the base amount of pension and the value of a year of pensionable service by:
 1) multiplying the national pension rate by the index approved pursuant to subsection 6 of this section;
 2) multiplying the base amount of a pension by the index approved pursuant to subsection 6 of this section the incremental part of which has been multiplied by the coefficient 1.1;
 3) multiplying the value of a year of pensionable service by the index approved pursuant to subsection 6 of this section the incremental part of which has been multiplied by the coefficient 0.9.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (8) [Repealed – RT I, 27.10.2020, 1 – entry into force 06.11.2020]

Chapter 8 PENSION QUALIFYING PERIOD  

§ 27.  Pension qualifying period

 (1) A pension qualifying period is a period during which an insured person is engaged in an activity which grants the right to receive a state pension.

 (2) A pension qualifying period shall be divided as follows:
 1) the years of pensionable service which are calculated until 31 December 1998;
 2) the accumulation period which is calculated as of 1 January 1999.

 (3) The list of documents necessary to certify years of pensionable service, requirements for the documents and specifications concerning the calculation of years of pensionable service shall be established by a regulation of the minister in charge of the policy sector.

[RT I, 06.12.2012, 1 – entry into force 01.01.2013]

 (4) The procedure for calculation of a pension qualifying period shall be established by a regulation of the minister in charge of the policy sector.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 28.  Time included in years of pensionable service

 (1) Time during which the employer of a person is required to pay social tax for the person shall be included in the years of pensionable service of the person.

 (2) Years of pensionable service shall also include:
 1) the time during which a person is a member of an artistic association or trade association as of the time the person begins engaging in creative activity. As of 1 January 1991, the time during which a person was or is engaged in creative activity shall be included in their length of service if social tax was or is paid;
 2) the period of service of a person in the Defence Forces of Estonia or any period of service deemed to be equal thereto in accordance with the Defence Forces Service Act, and any period of service in the employment of the Ministry of Internal Affairs;
 3) [repealed – RT I 2008, 48, 264 – entry into force 23.11.2008]
 4) the time during which a person is enrolled in daytime study at a vocational educational institution, in daytime study at a university or institution of applied higher education, or in a form of study deemed to be equal thereto;
[RT I 2010, 41, 240 – entry into force 01.09.2010]
 5) the period of assignment in a foreign mission for the spouse of a diplomat of the Republic of Estonia;
 6) the term of office of the President of the Republic of Estonia for the non-working spouse of the President;
 7) the time during which a person cares for a Category I disabled person, for a disabled child or for a person under 18 years of age who is disabled since childhood, and the time during which a mother, father, parent's spouse, guardian or actual caregiver of the child cares for a child under 3 years of age until the child attains 3 years of age;
[RT I, 02.07.2012, 2 – entry into force 01.01.2013]
 8) the time during which a person receives unemployment benefit from a state employment office or participates in labour market training organised by an employment office;
 9) the time during which a person works in a church (congregation) or other registered religious organisation. As of 1 January 1991, such time shall be included in the length of service if social tax was or is paid for the period;
 10) the time during which a person worked on a farm before its liquidation or before commencing work on a collective farm, state farm or elsewhere, if the person at that time was at least 14 years of age;
 11) the time during which a person worked on a farm, if the farm was exempt from taxes in accordance with the Estonian SSR Farm Act;
 12) two years for a parent or parent's spouse or guardian or foster parent for every child whom he or she has raised for at least eight years;
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]
 13) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 14) the time during which a person works as a sole proprietor if social tax was or is paid;
 14¹) the time during which a person operated as a member of the management or controlling body of a legal person if social tax was paid;
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]
 15) the time during which an employee or sole proprietor specified in clause 14 of this section is temporarily incapacitated for work;
 16) the time during which a person punished by conditional imprisonment performs mandatory work, the time during which a person does community work in lieu of imprisonment or the time during which a person works in a medical-labour centre.
[RT I, 06.12.2012, 1 – entry into force 01.01.2013]

 (2¹) The persons specified in clause 12 of subsection 2 of this section shall agree in whose years of pensionable service the two years for every child who has been raised for at least eight years shall be included. Such agreement shall be expressed by a written consent to waive the inclusion of the time specified in clause 12 of subsection 2 of this section in the years of pensionable service of the person. If the persons are unable to come to an agreement, the specified time shall be divided equally between the entitled persons. In the case of waiver by one person or several persons, the time specified in clause 12 of subsection 2 of this section shall be divided equally between the remaining entitled persons.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (3) The following shall be included in the years of pensionable service earned in Estonia under favourable conditions:
 1) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 2) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 3) [repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]
 4) the duration of employment in a leper house or institution for plague control, multiplied by two;
 5) in the case of a person who was subject to forced displacement from Sõrve peninsula in Saaremaa to Germany in October or November 1944, the time from displacement until settling in Estonia, but not longer than until 31 December 1946, multiplied by three.

 (4) The time of activities provided for subsections 1–3 of this section which took place in the territory of the former Union of Soviet Socialist Republics up to 1 January 1991 shall be included in the years of pensionable service if the pension qualifying period of the person earned in Estonia is at least fifteen years and no other state is paying pension for such pension qualifying period.

[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (5) The time during which a person is in compulsory military service or compulsory alternative service shall be included in the years of pensionable service if the person was referred to service from Estonia or the person lived in Estonia before and after being referred to service from outside of Estonia and the pension qualifying period of the person earned in Estonia is at least fifteen years and no other state is paying pension for such pension qualifying period.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

§ 28¹.  Certification of years of pensionable service

 (1) Years of pensionable service shall be certified on the basis of information in the population register with legal effect or documents certifying years of pensionable service. If there is information with legal effect certifying years of pensionable service in the population register, the information in the register shall be taken into account.

 (2) If no information or documents concerning years of pensionable service have been preserved in the population register, the insured person has the right to submit a request to the Social Insurance Board to take into account the testimonies of witnesses.
[RT I, 06.12.2012, 1 – entry into force 01.01.2013]

§ 29.  Calculation of years of pensionable service

 (1) Years of pensionable service shall be calculated to the accuracy of a day.

 (2) Upon calculation of the amount of a pension, years of pensionable service with the length of at least six months shall be rounded to a full year, and years of pensionable service with the length of less than six months shall not be taken into account.

 (3) Compliance with the requirement for a pension qualifying period which grants the right to receive an old-age pension or survivor’s pension shall be determined on the basis of unrounded years of pensionable service.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 30.  Calculation of accumulation period

 (1) One year towards the accumulation period of an insured person shall be calculated for the insured person for whom the pension insurance part of individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum wage for a year.
[RT I, 02.07.2012, 8 – entry into force 01.08.2012]

 (2) Upon calculation of the accumulation period, the pension insurance part of individually registered social tax of an insured person for each calendar year shall be compared to the pension insurance part of social tax calculated on the minimum wage for January of the corresponding year multiplied by twelve.
[RT I, 02.07.2012, 8 – entry into force 01.08.2012]

 (3) If the pension insurance part of social tax is paid by the state, local government or other legal person in public law pursuant to § 6 of the Social Tax Act and by a sole proprietor pursuant to § 6¹ of the Social Tax Act, the accumulation period shall be calculated to be equivalent to payment of the pension insurance part of social tax on the minimum wage.
[RT I, 02.07.2012, 8 – entry into force 01.08.2012]

 (4) Amounts which have been received for each insured person from the pension scheme of the institutions of the European Communities based on the Council Regulation specified in subsection 2¹ of § 12 of this Act shall be taken into account upon calculation of the accumulation period.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

Chapter 9 CLAIM FOR, GRANT AND PAYMENT OF STATE PENSION  

§ 30¹.  Notifying persons of their right to receive old-age pension

 (1) The Social Insurance Board shall verify on the basis of the data entered in the social protection information system the compliance of the person provided for in this Act with the requirements for the right to receive old-age pension, and notify the person of the creation of the right to receive old-age pension pursuant to § 7 of this Act at least six months before the creation of the corresponding right. The Social Insurance Board shall communicate the notice concerning the creation of the right to receive old-age pension to the e-mail addresses of the person or in the manner specified in clauses 2 and 3 of subsection 1 of § 27 of the General Part of the Social Code Act.

 (2) Compliance with the requirements specified in subsection 1 of this section shall be verified on the basis of the following data:
 1) general data of the person: personal identification code, surname and given names, data on residence and contact details, data on death, declaration of death, data on the person being missing or a fugitive, data on establishment of guardianship, data on permit or right of residence, data on residence within the meaning of subsection 1 of § 6 of the Income Tax Act;
 2) data on the individually registered social tax of the person;
 3) data on the years of pensionable service of the person;
 4) data concerning the grant and payment of pension to the person.
[RT I, 08.07.2016, 1 – entry into force 01.07.2017]

§ 31.  Claim for state pension

 (1) Claimants for a state pension shall submit pension applications to the Social Insurance Board.

 (1¹) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (1²) A person residing or settling in a foreign state who requests payment of previously granted pension to the foreign state shall submit a written application to the Social Insurance Board.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (2) A pension application shall set out the given names and surname, personal identification code or date of birth, data on residence and contact details of the applicant, information on the type of pension applied for, information on pension received from a foreign state and employment, information on raising and caring for a child, notation concerning the method of delivery of the decision and payment of the pension, information on the documents certifying years of pensionable service of the person, date of submission of the application and confirmation on submission of the application.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (3) The date on which the Social Insurance Board receives a pension application is deemed to be the date of making a pension claim.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (4) If the pension application is sent by post, the date on the date stamp of the place from which the pension application is sent is deemed to be the date of making a pension claim.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (5) [Repealed – RT I 2002, 61, 375 – entry into force 01.08.2002]

 (6) The Social Insurance Board shall assist a pension claimant when necessary in obtaining the necessary documents for making a pension claim.

 (7) The Social Insurance Board shall forward the health data of a person residing in the Republic of Estonia to the other party if the person is applying for the establishment of permanent incapacity for work and the grant of pension for incapacity for work from the other party on the basis of a bilateral international agreement.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (8) In order to forward the health data specified in subsection 7 of this section with the consent of the person, a person who has completed medical training shall have access to the following information in the health information system:
 1) information concerning the submitter of information;
 2) information concerning out-patient visits and hospitalisations;
 3) information concerning medicinal products.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

 (9) The list of information concerning a person in the health information system specified in subsection 8 of this section and the periods for inquiries shall be established by a regulation of the minister in charge of the policy sector.

[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 32.  Grant of state pension

 (1) The Social Insurance Board shall make a decision to grant or refuse to grant a state pension within fifteen working days as of the submission of a proper application.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) A state pension shall be granted as of the date of making a pension claim. A pension shall be granted as of an earlier date in the following cases:
 1) an old-age pension as of the date of attaining pensionable age (subsection 1 or 2 of § 7 of this Act) if the pension application is submitted within three months after the date of attaining pensionable age;
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]
 1¹) an old-age pension under favourable conditions as of the date of creation of the right to receive old-age pension under favourable conditions (subsection 1 of § 10 of this Act) if the pension application is submitted within three months after the date of creation of the right to receive old-age pension under favourable conditions;
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]
 2) a survivor’s pension or national pension shall be granted as of the date of death of the provider or the date of initiation by the police authorities of the procedure for establishing the whereabouts of the missing person, but not more than twelve months before making a pension claim.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (2¹) If a pension claimant submits a pension application and data required for making a decision to grant pension before the date of attaining pensionable age, but not earlier than six months before the date of attaining pensionable age, the decision to grant pension shall be made at the latest on the date of attaining pensionable age and the pension shall be granted as of the date of creation of the right to receive pension. A decision to refuse to grant pension shall be made as soon as possible but not later than on the date of attaining pensionable age.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (3) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

 (4) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

§ 33.  Pension committee

  [Repealed – RT I, 06.12.2012, 1 – entry into force 01.01.2013]

§ 34.  Decision to grant pension

  [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 35.  Pension certificate

  Pensioners shall be granted a pension certificate and the list of information included therein shall be established by a regulation of the minister in charge of the policy sector.

[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 36.  Payment of state pension

 (1) The monetary compensation paid on the basis of this Act shall be paid monthly for the current month pursuant to the procedure provided for in § 28 of the General Part of the Social Code Act, except for a state pension paid as home delivery by post in Estonia at the expense of the pensioner.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (1¹) Based on a written application of the person residing in a foreign state, pension may be paid retroactively once per quarter or once every half-year.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (2) [Repealed – RT I 2008, 48, 264 – entry into force 23.11.2008]

 (3) [Repealed – RT I 2008, 48, 264 – entry into force 23.11.2008]

 (4) A state pension which is granted to a minor in a social welfare institution shall be transferred to the personal bank account of the child.
[RT I, 30.12.2015, 5 – entry into force 01.01.2016]

 (5) On the basis of a reasoned application submitted to the Social Insurance Board, a state pension shall be paid as home delivery by post at the expense of the payer of the pension to a person whose mobility is restricted or who lives in a low density area and whose access to banking services is restricted and who is:
 1) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 2) [repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]
 3) a person of pensionable age.

[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (6) Based on the application specified in subsection 5 of this section, the Social Insurance Board shall make a decision with a period of validity of up to one year. The Social Insurance Board may make a decision on the basis of the application specified in subsection 5 of this section with a longer period of validity if this is necessary due to the nature of the reasons proceeding from which the Social Insurance Board makes the decision on the basis of the application specified in subsection 5 of this section. The Social Insurance Board shall make the decision on the basis of the application specified in subsection 5 of this section within ten working days after the submission of the corresponding application.

[RT I 2008, 48, 264 – entry into force 23.11.2008]

§ 37.  Total amount of state pension

  Payment of a state pension shall be based on the total amount of the state pension, which is comprised of the state pension granted to the person and the pension supplements or increases.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 38.  Rounding of pension amounts

  Upon payment of a state pension and calculation of the amount set off against a pension, amounts shall be rounded to the accuracy of one cent.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 39.  Instructions for grant, recalculation, suspension of payment and payment of state pensions

  [RT I, 03.01.2019, 1 – entry into force 01.01.2021]
The minister in charge of the policy sector shall establish the instructions for the grant, recalculation, suspension of payment, and payment of state pensions.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 39¹.  Circumstances which affect payment of pension

 (1) A person is required to notify the Social Insurance Board of all circumstances which bring about suspension or termination of the payment of pension or change in the amount of pension within ten days after the circumstances arise.

 (2) The circumstances specified in subsection 1 of this section are the following:
 1) commencement of work in professions, positions, production areas or engagement in works which bring about suspension or termination of the payment of pension paid on the basis of a specific Act;
 2) settlement in a foreign state;
 3) change in data on the residence of a person residing in a foreign state;
 4) commencement of work in a foreign state if suspension or termination of the payment of pension depends on employment;
 5) in the case of survivor's pension, also commencement of studies in a foreign state, taking of academic leave or interruption of studies and grant of old-age pension, pension for incapacity for work or national pension by a foreign state;
 6) other circumstances.

 (3) Upon grant, recalculation and payment of pension, the Social Insurance Board has the right to take into account, in addition to the information provided for in the Population Register Act, other information known to the Social Insurance Board which bring about suspension or termination of the payment of pension or change in the amount of pension.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 40.  Resolution of disputes

 (1) If a person disagrees with an administrative act of the Social Insurance Board, he or she has the right to file a challenge with the Social Insurance Board within thirty days after the date on which the person becomes or should become aware of the challenged administrative act or to directly file an appeal with an administrative court under the conditions and pursuant to the procedure provided by the Code of Administrative Court Procedure. In order to resolve challenges, the Social Insurance Board may form committees and to involve experts if necessary. A challenge shall be resolved within sixty days after registration of the challenge by the Social Insurance Board.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (2) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

 (3) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

Chapter 10 SPECIFICATIONS OF CALCULATION, GRANT AND PAYMENT OF STATE PENSIONS  

§ 41.  Grant and payment of survivor's pension

 (1) A common pension shall be granted to family members specified in § 20 of this Act and persons deemed to be equal to them who have the right to receive a survivor’s pension or national pension upon the loss of a provider.

 (2) On the basis of an application of a family member, his or her share shall be separated from the survivor’s pension or the national pension paid upon the loss of a provider, and paid to him or her separately.

 (3) Where a widow or widower or a registered partner with whom the registered partnership contract has been terminated due to death, or a divorced person remarries or enters into a registered partnership contract, the survivor’s pension or national pension granted to the person due to the death of their spouse or registered partner or in the case provided in subsection 5 of § 20 of this Act is retained for twelve months.
[RT I, 06.07.2023, 6 – entry into force 01.01.2024]

 (4) Persons who are under 18 years of age, or orphans who are under 24 years of age, and who are enrolled in daytime study or, for medical reasons, in another form of study at an upper secondary school or vocational educational institution, or in full-time study at a university or institution of applied higher education, or orphans who are older if they were established to have partial or no work ability pursuant to the Work Ability Allowance Act before they attained 18 years of age (or if they are students enrolled in daytime study or, for medical reasons, in another form of study, or full-time study, before they attained 24 years of age) have the right, taking into account the provisions of subsection 2 of § 21 and clause 3 of § 23 of this Act, to receive two survivor’s pensions or two national pensions or both a survivor’s pension and a national pension concurrently, depending on the pension qualifying period of their parents.
[RT I, 13.12.2014, 1 – entry into force 01.07.2016 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 42.  Specifications of calculation and payment of state pensions if pension rights arise pursuant to international agreement

 (1) The state pension of persons who have not completed the pension qualifying period earned in Estonia required for the grant of a state pension, but who have the right to a pension on the basis of an international agreement, shall be calculated pursuant to the procedure provided for in this section. This section applies to persons who are residing in the territory of a Contracting State.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (2) In case of old-age pension, the theoretical amount of old-age pension shall be calculated at first, in particular taking account of all pension qualifying periods earned in Estonia and in the Contracting Party as if they had been completed in Estonia. For calculating the actual amount of old-age pension, the theoretical amount of old-age pension shall be multiplied by the number of years in the pension qualifying period earned in Estonia and shall be divided by the number of years of the total pension qualifying period earned in all Contracting Parties, including in Estonia.
[RT I 2006, 49, 370 – entry into force 20.11.2006]

 (2¹) If an old-age pensioner who has no data on the individually registered social tax commences work in Estonia and the amount of the old-age pension of the person is reduced upon recalculation of old-age pension on the basis of subsection 2 of this section and clause 1 of subsection 1 of § 25 of this Act, payment of the old-age pension shall continue in the former amount.
[RT I, 19.12.2020, 1 – entry into force 29.12.2020]

 (3) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

 (4) The theoretical amount of old-age pension which is the basis for calculation of a survivor's pension is calculated pursuant to the procedure provided for in subsection 1 of § 21 of this Act. For calculating the actual amount of old-age pension, the theoretical amount of old-age pension shall be multiplied by the number of years in the pension qualifying period earned in Estonia and shall be divided by the number of years of the total pension qualifying period earned in all Contracting Parties, including in Estonia. A survivor’s pension shall be calculated pursuant to subsection 2 of § 21 of this Act from the actual amount of old-age pension calculated on the basis of this subsection.

[RT I 2006, 49, 370 – entry into force 20.11.2006]

 (5) If the total amount of old-age pensions paid to persons residing in Estonia specified in subsection 1 of this section pursuant to international agreements by Contracting Parties together with the pensions paid by Estonia is less than the national pension rate, an amount which covers the difference between the national pension rate and pensions received pursuant to international agreements shall be paid to the person on the basis of his or her application.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (5¹) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (6) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (7) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (8) [Repealed – RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 42¹.  Calculation and payment of old-age pension upon employment by institutions of European Community

 (1) If a person commences work in an institution of the European Community, the Social Insurance Board shall organise the calculation and totalization of the old-age pension for the insured person, and entry of the total amount in the pension scheme of the institution of the European Community pursuant to the procedure provided by subsection 21 of § 12 of this Act.

 (2) The expenses related to the transfer of the pension funds provided for in subsection 1 of this section shall be covered from the state budget.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

§ 42².  Specifications of grant and payment of state pension upon residing in foreign state

 (1) The pension of a person whose right to receive a pension arises on the basis of this Act shall be granted and paid to a foreign state taking account of the following specifications:
 1) flexible old-age pension and old-age pension under favourable conditions shall be granted and paid to a foreign state to the person who has attained pensionable age;
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]
 2) national pension and pensions related to reduced work ability shall not be granted and paid to a foreign state;
 3) upon grant and payment of state pension, the time of activities specified in subsection 4 of § 28 of this Act which took place in the territory of the former Union of Soviet Socialist Republics shall not be included in the years of pensionable service;
 4) dependants of the pensioner shall not be granted pension of the basis of subsection 4 of § 46 of this Act if the pensioner is staying in a foreign state due to the reasons provided for in subsections 1–3 of § 46 of this Act and the person has not attained pensionable age.

 (2) If the time of activities specified in subsection 4 of § 28 of this Act has been included in the years of pensionable service of a person residing in a foreign state, the pension of the person shall be recalculated pursuant to clause 2 of subsection 1 of § 25 of this Act.

 (3) The pension of a person whose right to receive a pension arises on the basis of a specific Act shall be granted and paid to a foreign state taking account of the requirements and procedure provided for in this Act and the following specifications:
 1) a pension provided for in a specific Act, except for a survivor's pension, shall be paid to a person who has attained pensionable age;
 2) pensions related to reduced work ability shall not be granted or paid to a foreign state to a person residing in the foreign state, except for pensions related to reduced work ability the payment of which continues after attaining pensionable age.

 (4) The specifications provided for in this section concerning the grant and payment of pensions within the scope of application of the international agreement shall not apply to persons residing in a foreign state which has entered into an international agreement with Estonia.
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]

 (5) If state pension has been granted to a person residing in a foreign state on the basis of this section before entry into force of the international agreement specified in subsection 4 of this section, the international agreement shall apply to the person as of entry into force thereof. State pensions which have been granted shall be recalculated if circumstances arise which require the recalculation of pension as of the day of entry into force of the international agreement.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

§ 42³.  Suspension of state pension upon settlement in foreign state

 (1) The payment of pension shall be suspended if the person settles in a foreign state. The payment of pension to the person shall continue as of the date of suspension after submission of an application in a format which can be reproduced in writing.

 (2) The payment of pension to a person to whom the pension has been granted before attaining pensionable age, except a person receiving survivor’s pension, and who settles in a foreign state which has not entered into an international agreement with Estonia shall be continued after submission of an application in a format which can be reproduced in writing and verification of data as of the date of attaining pensionable age or the date the person complies with one of the requirements provided for in clauses 1 and 2 of subsection 1 of § 4 of this Act.
[RT I, 18.02.2022, 1 – entry into force 28.02.2022]

§ 42⁴.  Obligation of pensioner residing in foreign state to submit life certificate

 (1) A pensioner residing in a foreign state shall submit to the Social Insurance Board a written life certificate certified by the authority of the state of residence or the foreign mission of the Republic of Estonia by 1 March each year.
[RT I, 22.06.2021, 1 – entry into force 01.01.2018]

 (2) A pensioner residing in a foreign state is not required to submit the certificate specified in subsection 1 of this section if:
 1) he or she submits to the Social Insurance Board a document proving his or her residency provided for in the Income Tax Act which is certified by the tax authority of the state of residence or other competent official;
 2) an agreement on the exchange of data concerning pensioners has been entered into with the competent authority of his or her state of residence;
[RT I, 22.06.2021, 1 – entry into force 01.01.2018]
 3) he or she provides life certification through an electronic channel established for this purpose by the Social Insurance Board or appears in person at the Social Insurance Board.
[RT I, 18.02.2022, 1 – entry into force 28.02.2022]

 (3) Upon failure to submit a life certificate within the prescribed term, payment of pension shall be suspended as of 1 April of the current year. If the pensioner has previously submitted the document specified in clause 1 of subsection 2 of this section, his or her pension shall be suspended on the basis of the period of validity of the certificate. If a certificate is submitted later, payment of pension shall continue retroactively as of suspension of the payment of pension.
[RT I, 22.06.2021, 1 – entry into force 01.01.2018]

 (4) The composition of data of life certification shall be established by a regulation of the minister in charge of the policy sector.
[RT I, 18.02.2022, 1 – entry into force 28.02.2022]

§ 43.  Payment of state pensions to persons who are employed

 (1) Survivor's pension and national pension shall not be paid to persons specified in clause 3 of subsection 1 of § 22 of this Act who are employed, except to children under 18 years of age, or to students under 24 years of age enrolled in daytime study or, for medical reasons, in another form of study, or full-time study.

[RT I 2010, 41, 240 – entry into force 01.09.2010]

 (1¹) An early retirement pension shall not be paid if the person continues working until he or she attains pensionable age as provided in § 7 of this Act.

 (2) For the purposes of this Act, employment means earning of income which is subject to social tax on the basis of an employment contract, contract of service or contract under the law of obligations, or engagement in public service, provision of a service or the sale of goods within the meaning of the Simplified Business Income Taxation Act and operating as an undertaking.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

 (3) The employment of the persons specified in clause 3 of subsection 1 of § 22 of this Act and subsection 1¹ of this section shall be certified by the data in the employment register provided for in § 251 of the Taxation Act.

[RT I, 16.04.2014, 3 – entry into force 01.07.2014]

§ 44.  Payment of state pension on basis of authorisation document

 (1) A state pension shall be paid on the basis of an authorisation document during the period of validity of such document.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (2) The authorisation document shall be notarised or certified by the head of the in-patient medical institution in which the pensioner is treated.

 (3) If no term is set out in an authorisation document, it is valid for one year as of the date of certification.

 (4) If an authorisation document is certified by the head of an in-patient medical institution, it is valid for the one-time receipt of unreceived pension for a period of up to six months.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

§ 45.  Unreceived pension

 (1) If a pension which is paid by post is not withdrawn for at least two months, payment of the pension shall be suspended. After submission of the corresponding application and a document provided for in subsection 2 of § 2 or § 4 of the Identity Documents Act, the pension shall be paid retroactively.

[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (3) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (4) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (5) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 46.  Payment of state pensions to sentenced pensioners

 (1) If a court convicts a pensioner and punishes him or her by imprisonment, payment of his or her state pension shall be suspended during imprisonment.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (2) If a person is taken into custody as a preventive measure, payment of his or her state pension shall be suspended for the time the person is held in custody. The pension shall be paid to the person retroactively after a court judgment enters into force if the person is acquitted or is not subject to punishment by imprisonment.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (3) If a court orders the administration of coercive psychiatric treatment with regard to a pensioner, during the period such treatment is administered his or her pension shall be paid at one half of the national pension rate, but in the amount not exceeding the pension granted, recalculated and indexed for the person.
[RT I, 22.06.2016, 1 – entry into force 01.01.2018]

 (4) If a pensioner specified in subsections 1–3 of this section has dependants listed in clause 1 of subsection 2 of § 20 of this Act, his or her state pension shall be paid to them in the following amounts:
 1) in the case of one dependant, 25 per cent of the pension;
 2) in the case of two dependants, 50 per cent of the pension;
 3) in the case of three or more dependants, 75 per cent of the pension.

 (5) If the pension paid pursuant to subsections 3 and 4 of this section exceeds the amount of the pension granted, recalculated and indexed for the person, the pension shall be paid in the granted, recalculated and indexed amount.

[RT I 2002, 53, 338 – entry into force 01.07.2002]

 (6) If a person is paid old-age pension on the basis of § 251 of this Act the amount of which is 50 per cent of the old-age pension granted to the person or if the payment of pension is suspended, the Social Insurance Board shall grant an old-age pension to the pensioner specified in subsections 3 and 4 of this section the amount of which is 100 per cent of the old-age pension calculated for the person.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 46¹.  Suspension of payment of pension to missing person

 (1) If a pensioner is missing or declared to be a fugitive because he or she evades service of imprisonment, payment of the pension shall be suspended after one month has passed from the receipt of such information from the police.

 (2) Upon establishing the whereabouts of the pensioner, pension shall be paid retroactively as of the suspension of payment of the pension. Pension shall not be paid retroactively if the person has been declared to be a fugitive because he or she evades service of imprisonment.

 (3) If a person is missing and the right of his or her dependants to receive survivor's pension has arisen on the basis of subsection 5 of § 20 of this Act, the pension paid retroactively to the person shall be reduced by the survivor's pension paid to the dependants.

[RT I, 22.06.2016, 1 – entry into force 02.07.2016]

§ 47.  Set-off against state pension

  [RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (1) Set-offs against state pensions may be made pursuant to the procedure provided for in the General Part of the Social Code Act only:
 1) on the basis of a decision subject to enforcement pursuant to the Code of Enforcement Procedure;
 2) on the basis of a decision of the Social Insurance Board to reclaim pension amounts or pensioner’s living alone allowance overpaid to a pensioner;
[RT I, 06.12.2016, 1 – entry into force 01.01.2017]
 3) in the case specified in subsection 3 of § 14 of the Family Benefits Act.

 (2) The amount set off against a state pension shall be calculated based on the pension prescribed for the pensioner, on the basis of the total amount of the state pension.

 (2¹) If a person is paid old-age pension on the basis of § 251 of this Act the amount of which is 50 per cent of the old-age pension granted to the person or if the payment of pension is suspended, the Social Insurance Board shall grant an old-age pension to the person the amount of which is 100 per cent and the amount set off shall be calculated based on the old-age pension the amount of which is 100 per cent of the old-age pension calculated for the person.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

 (3) On the basis of a decision subject to enforcement pursuant to the Code of Enforcement Procedure, up to 50 per cent of a state pension may be set off, but at least 50 per cent of the national pension rate shall be retained for a pensioner.

 (4) On the basis of a decision of the Social Insurance Board, up to 20 per cent of a state pension may be set off in addition to amounts set off pursuant to subsection 3 of this section, but at least 50 per cent of the national pension rate shall be retained for a pensioner.

 (5) With the written consent of the pensioner, an amount which exceeds the limits provided for in subsection 4 of this section may be set off against the state pension on the basis of a decision of the Social Insurance Board.

 (6) The Social Insurance Board shall transfer an amount set off pursuant to subsection 3 of this section to the official bank account of an enforcement agent or the bank account of a tax administrator.

[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 48.  Recovery of pension amounts

 (1) If a person does not have the right to receive state pension or if payment of a state pension terminates before an amount set off on the basis of a decision of the Social Insurance Board is fully recovered, the Social Insurance Board shall reclaim the state pension paid to the person without basis pursuant to the procedure provided for in the General Part of the Social Code Act.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (1¹) If the Social Insurance Board issues a precept to a person concerning the commencement of compulsory enforcement upon failure to perform the obligation to comply with the recovery but there is no information concerning the address of the person or the person does not live at the address known and the actual location of the person is unknown and the precept cannot be delivered in any other manner provided for in the General Part of the Social Code Act, the conclusion of the precept shall be published in the official publication Ametlikud Teadaanded.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (3) If a person loses his or her provider due to a traffic accident, the Social Insurance Board shall collect the paid survivor’s pension or national pension from an insurer engaging in motor third party liability insurance if the right of claim against the insurer dealing in motor third party liability insurance arises for the person who receives state pension.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

Chapter 11 ORGANISATION OF STATE PENSION INSURANCE  
[RT I, 08.07.2016, 1 - entry into force 01.01.2017]

§ 49.  Organisation of state pension insurance

  State pension insurance shall be organised by the Social Insurance Board which is in the area of government of the Ministry of Social Affairs.

§ 50.  State Pension Insurance Register

  [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 51.  Purpose and controller of register

  [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 52.  Entries in register and receiving data from register

  [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 53.  Maintenance of records on social tax paid or calculated, years of pensionable service and accumulation period and grant and payment of pensions

  [RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (1) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (1¹) [Repealed – RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2) On the basis of data in the social protection information system, records on social tax paid or calculated for a person, years of pensionable service and accumulation period and the grant and payment of pensions shall be maintained.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (2¹) In addition to the data specified in subsection 2, records shall be maintained, based on the data in the social protection information system, concerning a person with regard to the funds received from the pension scheme of the institutions of European Communities and the accumulation period calculated based on such funds.

[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

 (3) On the basis of data in the social protection information system, the insurance component of every insured person and the sum of the insurance components shall be calculated once a year pursuant to the procedure provided for in § 12 of this Act.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 54.  Notification of insured persons

  [Repealed – RT I, 03.01.2019, 1 – entry into force 01.01.2021]

Chapter 12 STATE PENSION INSURANCE FUNDS  

§ 55.  State pension insurance funds

  Funds for financing state pension insurance shall be prescribed in the annual state budget.

§ 56.  Sources for covering expenditure prescribed for state pension insurance

 (1) The sources for covering expenditure prescribed for state pension insurance in the state budget are:
 1) the pension insurance part of social tax according to the Social Tax Act and the balance of such funds which remain unused at the end of the budgetary year;
 2) fines according to the Employees Disciplinary Punishments Act and the balance of such funds which remain unused at the end of the budgetary year;
 3) funds received into the state budget from the recovery of pension amounts and the balance of such funds which remain unused at the end of the budgetary year;
 4) allocations prescribed from the state budget for specific purposes that are paid into the pension insurance reserve and emergency reserve, and the balance of such funds which remain unused at the end of the budgetary year;
 5) other funds prescribed in the state budget for payment of pensions;
 6) funds prescribed in the state budget for incurring the expenditure specified in subsection 2 of § 57 of this Act.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (1¹) In addition to the funds specified in subsection 1 of this section, the amounts received into the state budget pursuant to the procedure provided by the Council Regulation specified in subsection 2¹ of § 12 of this Act shall be used as a source for covering the expenditure prescribed for state pension insurance. If an insured person is an obligated person within the meaning of the Funded Pensions Act, then 16/22 of the amount received shall be transferred to the state pension insurance funds.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (2) [Repealed – RT I 2007, 62, 395 – entry into force 01.01.2008]

§ 57.  Expenditure prescribed for state pension insurance

 (1) Only the following expenditure shall be financed out of the sources for covering expenditure prescribed for state pension insurance specified in clauses 1–5 of subsection 1 and subsection 1¹ of § 56 of this Act:
 1) old-age pensions, survivor's pensions and pensions retained in their former amounts provided for in this Act, except pension supplements provided for in § 24 of this Act and parts of pensions which correspond to the years of pensionable service provided for in subsection 3 of § 28 of this Act;
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]
 2) pensions provided for in the Superannuated Pensions Act and the Old-Age Pensions under Favourable Conditions Act;
 3) payments prescribed on the basis of the Council Regulation specified in subsection 2¹ of § 12 of this Act.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (2) All other expenditure arising from this Act shall be financed out of funds specified in clause 6 of subsection 1 of § 56 of this Act.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

 (3) Pensions and pension supplements paid by the Estonian state pursuant to other Acts shall be financed out of funds prescribed by the corresponding Acts.

 (4) If, pursuant to Acts established after adoption of the state budget, the sources for covering expenditure prescribed for state pension insurance decrease or the expenditure increases, additional sources for covering expenditure shall be provided by law.

Chapter 13 IMPLEMENTATION OF ACT  

§ 58.  Previously determined categories of disability

 (1) In the case of persons whose category of disability has been determined for a specified term on the basis of the State Allowances Act and who within such term have not reached the pensionable age, their categories of disability are deemed to correspond to the permanent incapacity for work determined until the expiry of such term and medical examination for incapacity for work shall be conducted in respect of them within the specified term.

 (2) The category of disability of a person shall not be reviewed if the category has been determined for a specified term on the basis of the State Allowances Act and the person attains the pensionable age not later than by 31 March 2003.

 (3) The categories of disability of persons specified in subsection 2 of this section and persons up to the pensionable age whose category of disability has been determined for an unspecified term on the basis of the State Allowances Act are deemed to correspond to the permanent incapacity for work determined until the pensionable age.

 (4) In the cases provided for in subsections 1 and 3 of this section, the following percentages of loss of capacity for work are deemed to correspond to the following categories of disability:
 1) a 100 per cent loss of capacity for work corresponds to Category I disability;
 2) an 80 per cent loss of capacity for work corresponds to Category II disability;
 3) a 60 per cent loss of capacity for work corresponds to Category III disability.

 (5) Persons between the age of 16 and the pensionable age whose category of disability has been determined for an unspecified term on the basis of the State Allowances Act have the right to apply for assessment of work ability pursuant to the procedure provided for in the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (5¹) If a person uses the right provided for in subsection 5 of this section, the decision on determination of the category of disability shall be revoked as of the month following the calendar month of making the decision concerning the assessment of work ability on the basis of the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

 (6) Except in the cases provided for in subsection 4 of this section, categories of disability are, until 31 March 2003, deemed to correspond to degrees of permanent incapacity for work as follows:
 1) total incapacity for work with a 100 per cent loss of capacity for work corresponds to Category I disability;
 2) partial incapacity for work with an 80 or 90 per cent loss of capacity for work corresponds to Category II disability;
 3) partial incapacity for work with a 40 to 70 per cent loss of capacity for work corresponds to Category III disability.

 (7) For the purposes of subsection 1 of § 10 of this Act, raising of a disabled child or a person under 18 years of age who is disabled since childhood is deemed to be equivalent to raising of a disabled child who is under 18 years of age.

§ 58¹.  Specifications for increasing deferred old-age pension

  The deferred old-age pension of a person who applies for deferred old-age pension after 1 January 2021 on the basis of § 61²³ of this Act shall not be increased pursuant to the procedure provided for in subsection 3 of § 8 of the wording of this Act in force until 31 December 2020 for a period:
 1) during which the person does not meet the conditions for the grant of state pensions provided for in subsections 1 and 11 of § 4 of this Act;
 2) during which the person receives a state pension or a pension from another state;
 3) after the person attains the pensionable age before 1 January 2002.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

§ 58².  Differences in recalculation of old-age pension coefficient and permissibility of transfer of pension rights

 (1) A person who meets the conditions provided for in subsection 2¹ of § 12 of this Act and receives an old-age pension based on the state pension insurance before 1 January 2008 has the right to apply for the recalculation of the pension and the insurance component of the insured person according to the amounts received in the pension insurance funds from the pension scheme of the institutions of the European Communities.

[RT I, 10.03.2015, 5 – entry into force 01.04.2015]

 (2) The rights provided for in this Act shall extend to all applications for the transfer of pension rights which are submitted after 1 May 2004.
[RT I 2007, 62, 395 – entry into force 01.01.2008]

§ 59.  Calculation of accumulation periods and insurance parts of state pensions for years 1999, 2000 and 2001

  [RT I, 10.03.2015, 5 – entry into force 01.04.2015]

 (1) For calendar years 1999, 2000 and 2001, one year towards the accumulation period of an insured person shall be calculated for the insured person for whom individually registered social tax has been paid or calculated pursuant to the Social Tax Act in an amount equal to at least the minimum monthly wage for a year.

 (2) For calendar years 1999, 2000 and 2001, upon calculation of the accumulation period, the individually registered social tax of an insured person for a calendar year shall be compared to the social tax calculated on the minimum monthly wage for January of the corresponding year multiplied by twelve.

 (3) For calendar years 1999, 2000 and 2001, if social tax is paid by the state pursuant to § 6 of the Social Tax Act, the accumulation period shall be calculated to be equivalent to payment of social tax on the minimum monthly wage.

 (4) In order to calculate the insurance component of an insured person for the calendar years 1999, 2000 and 2001, the amounts of the individually registered social tax calculated for the insured person shall be totalled and divided by the average amount of the individually registered social tax in the given calendar year.
[RT I, 10.03.2015, 5 – entry into force 01.04.2015]

 (5) The Government of the Republic shall approve the average amount of individually registered social tax of the year 2001 not later than on 20 March 2002 and this shall be implemented in the grant and recalculation of pensions for a term commencing on 1 April 2002.

 (6) If a pension is granted with a commencement date before 1 April 2002, the average amount of individually registered social tax of the year 2001 which is approved by the Government of the Republic shall be taken as the basis for calculation of the pension.

§ 59¹.  Calculation of insurance component and solidary component of insured persons from 1 July 2020 until 31 August 2021

 (1) Upon calculation of the insurance component of an insured person in the case of a person specified in subsections 21 and 22 of § 13 of the Social Tax Act, the share of the state pension insurance part of individually registered social tax shall be 16 per cent and the solidary component of the person shall be up to 0.800 from 1 January until 31 August 2021.

 (2) If a person specified in subsection 1 of this section has submitted an application for non-payment of contributions specified in subsection 1 of § 67³ of the Funded Pensions Act, the share of the state pension insurance part of individually registered social tax shall be 20 per cent from 1 December 2020 until 31 August 2021 and the solidary component of the person shall be up to 1.000 from 1 January until 31 August 2021.

 (3) In the case of a sole proprietor:
 1) the share of the state pension insurance part of individually registered social tax specified in subsection 2 of this section shall be calculated on the basis of social tax paid on 1/12 of the business income received in 2020 and on 2/3 of the income received in 2021;
 2) the solidary component specified in subsection 2 of this section shall be calculated on the basis of social tax paid on 2/3 of the business income received in 2021.
[RT I, 21.04.2020, 1 – entry into force 01.07.2020]

§ 60.  Retention of previously granted pensions

 (1) The payment of pensions granted before the entry into force of this Act shall be continued in the former amount until the specified date in the following cases:
 1) for pensioners whose pension calculated pursuant to this Act proves to be smaller than the pension previously paid;
 2) for pensioners whose category of disability has not been reviewed or whose percentage of loss of capacity for work is determined to be higher than or equal to the percentage determined previously, unless the pension calculated pursuant to this Act proves to be greater than the pension previously paid;
 3) for pensioners for whom the right to receive a state pension does not arise pursuant to this Act, except in the case provided for in subsection 2;

 (2) The type of pensions of old-age pensioners who were granted a state pension before the entry into force of this Act and for whom the right to receive an old-age pension does not arise pursuant to this Act shall be retained and the pensions shall be calculated pursuant to the provisions of § 11 of this Act. If a calculated pension proves to be smaller than the pension previously paid, payment of the pension shall continue in the former amount.

 (2¹) The payment of a pension to one parent, or the widow, widower or guardian who is raising a child, brother, sister or grandchild of the provider who is from 3 to 14 years of age in his or her family and to whom a survivor's pension has been paid during the period from 1 April 2000 to 31 December 2001 shall be continued in the former amount for the specified term.
[RT I 2002, 53, 338 – entry into force 01.07.2002]

 (3) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

 (4) [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (entry into force changed – RT I, 17.12.2015, 1)]

 (5) [Repealed – RT I 2003, 88, 589 – entry into force 01.01.2004]

§ 60¹.  Extension of validity of results of examination for establishment of permanent incapacity for work during extraordinary situation

  During an emergency, an emergency situation, a state of emergency or a state of war, the Social Insurance Board may, on the proposal of the minister in charge of the policy sector, extend the validity of the results of the examination for establishment of permanent incapacity for work if reassessment is significantly restricted due to the emergency, emergency situation, state of emergency or state of war for objective reasons and the extension of the validity of the results of the examination for establishment of permanent incapacity for work is necessary for the person declared permanently incapacitated for work for the preservation of the social guarantees of the person until the need for the rearrangement arising from the emergency, emergency situation, state of emergency or state of war ceases to exist.
[RT I, 21.04.2020, 1 – entry into force 22.04.2020, applied retroactively as of 12 March 2020]

§ 60².  Implementation of § 60¹ of this Act

  During the emergency situation declared by the Government of the Republic on 12 March 2020, the Social Insurance Board may apply the possibility to extend the validity of the results of the examination for establishment of permanent incapacity for work provided for in § 60¹ of this Act retroactively as of 12 March 2020.
[RT I, 21.04.2020, 1 – entry into force 22.04.2020]

§ 61.  Value of base amount of pension, year of pensionable service and national pension rate

 (1) From 1 January to 31 March 2002, the base amount of a pension shall be 410 kroons, the value of a year of pensionable service shall be 27 kroons 85 cents and the national pension rate shall be 800 kroons.

 (1¹) From 1 July 2002 to 31 March 2003, the base amount of a pension shall be 444 kroons 44 cents, the value of a year of pensionable service shall be 31 kroons 69 cents and the national pension rate shall be 867 kroons 20 cents.

 (1²) From 1 July 2003 to 31 March 2004, the base amount of a pension shall be 577 kroons 33 cents.

 (1³) On 1 April 2004, the base amount of pension is additionally increased after indexation by 50 kroons and the value of a year of pensionable service is increased by 1.13 kroons.

 (1⁴) On 1 July 2005, the base amount of pension is increased by 150 kroons, the value of a year of pensionable service is increased by 3.02 kroons and the national pension rate is increased by 100 kroons.

 (1⁵) On 1 April 2006, the base amount of pension is increased after indexation by 60 kroons and the value of a year of pensionable service is increased by 1.53 kroons.

 (1⁶) On 1 July 2007, the base amount of pension is increased by 250 kroons and the national pension rate is increased by 150 kroons.
[RT I 2007, 40, 286 – entry into force 23.06.2007]

 (1⁷) On 1 April 2020, the base amount of pension is additionally increased after indexation by 7 euros.
[RT I, 28.11.2019, 1 – entry into force 01.01.2020]

 (1⁸) On 1 April 2021, the base amount of pension is increased by 16 euros and the national pension rate is increased by 30 euros. Upon indexation of the base amount of pension and the national pension in accordance with § 26 of this Act, the base amount of pension and the national pension rate shall be increased after the indexation.
[RT I, 19.12.2020, 1 – entry into force 01.04.2021]

 (1⁹) On 1 January 2023, the base amount of pension and the national pension rate are increased by 20 euros.
[RT I, 02.02.2022, 1 – entry into force 01.01.2023]

 (2) The value of the base amount of a pension, a year of pensionable service and the national pension rate for the following periods shall be calculated pursuant to the procedure provided for in § 26 of this Act.

§ 61¹.  Enrolment in daytime study

 (1) Instead of the requirement for enrolment in full-time study, provided in clause 1 of subsection 2 of § 20, subsection 4 of § 41 and 1 of § 43 of this Act, persons admitted to educational institutions before the academic year 2003/2004 are required to enrol in daytime study.

[RT I, 02.07.2013, 1 – entry into force 01.09.2013]

 (2) Instead of the requirement for enrolment in daytime study at a vocational educational institution provided for in clause 1 of subsection 2 of § 20 and subsection 1 of § 43 of this Act, persons admitted to vocational training before the academic year 2012/2013 are required to enrol in full-time study or another form of study for medical reasons.

[RT I, 02.07.2013, 1 – entry into force 01.09.2013]

§ 61².  Grant and recalculation of pension retroactively

 (1) Pension shall be granted to or recalculated for pensioners who have the right to a pension, pension supplement or additional pension qualifying period upon entry into force or amendment of the Act after the date of entry into force of the Act or the entry into force of the relevant amendment if the application and the documents necessary for the grant of the pension have been submitted within six months after the entry into force of the Act or the relevant amendment. If an application is submitted later, pension shall be granted in accordance with subsection 2 of § 32 of this Act or recalculated in accordance with subsection 1 of § 25 of this Act.

[RT I, 02.07.2012, 2 – entry into force 01.01.2013]

 (2) The Social Insurance Board shall notify within six months as of 1 June 2022 a pensioner whose right to change the type of pension arises on the basis of subsection 41 of § 20 of this Act, and grant a pension to the person and recalculate the pension of the person as of 1 June 2022.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

§ 61³.  Allocations prescribed in state budget for specific purposes paid into pension insurance reserve and emergency reserve

  The funds allocated by state budgets to the pension insurance reserve and emergency reserve before 1 January 2008 are also deemed to be the allocations prescribed in the state budget for specific purposes which are paid into the pension insurance reserve and emergency reserve specified in clause 4 of subsection 1 of § 56 of this Act.

[RT I 2007, 62, 395 – entry into force 01.01.2008]

§ 61⁴.  Payment of pensions

 (1) State pensions shall be paid pursuant to the procedure provided by subsections 1 and 5 of § 36 of this Act as of 1 February 2009.

[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (2) Until 1 February 2009, a state pension shall be paid monthly for the current month through the Social Insurance Board either to the bank account of the pensioner or by post at the expense of the payer as requested by the pensioner. A state pension shall be transferred to the account of a pensioner in a bank in a foreign state at the expense of the recipient.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (3) As of 1 February 2009, a state pension granted before 1 February 2009 shall be paid pursuant to the procedure provided in § 36 of this Act.
[RT I 2008, 48, 264 – entry into force 23.11.2008]

 (4) If the pensioner has not notified the Social Insurance Board of his or her bank account number or submitted an application in accordance with clause 2 of subsection 1 of § 36 and it is therefore not possible to pay the pension pursuant to the procedure provided for in § 36 of this Act, payment of the pension shall be suspended as of 1 February 2009. After submission of the appropriate application and the document provided for in subsection 2 of § 2 of the Identity Documents Act, the pension shall be paid retroactively.

[RT I, 06.12.2012, 1 – entry into force 01.01.2013]

 (5) Under the conditions and pursuant to the procedure provided for in subsections 5 and 6 of § 36 of this Act, state pensions shall also be paid to persons with a profound disability receiving pension for incapacity for work and persons with a profound disability declared permanently incapacitated for work receiving national pension.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61⁵.  Obligation of analysis

 (1) The Government of the Republic shall prepare an analysis by the year 2019 concerning the effect of the pensionable age provided for in this Act on the financial and social sustainability of the pension insurance system and, if necessary, submit a proposal to the Riigikogu on changing of the pensionable age provided for in § 7 of this Act or establishing of a flexible pensionable age.
[RT I 2010, 18, 97 – entry into force 16.05.2010]

 (2) The Government of the Republic shall prepare an analysis by the year 2023 and every five years thereafter concerning the financial and social sustainability of the pension insurance system and, if necessary, submit a proposal to the Riigikogu on amendment of the pension system.
[RT I, 27.10.2020, 1 – entry into force 06.11.2020]

§ 61⁶.  Specifications for transition to the euro

  The base amount of pension, value of a year of pensionable service and the national pension rate shall be converted into euros according to the euro conversion rate of the Estonian kroon which is determined by the Council of the European Union in accordance with Article 140(3) of the Treaty on the Functioning of the European Union.
[RT I 2010, 22, 108 – entry into force 01.01.2011]

§ 61⁷.  Implementation of subsections 10³ and 10⁴ of § 16

  [Repealed – RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61⁸.  Specifications upon payment of pension supplement

 (1) The pension supplement provided for in clause 1¹ of subsection 1¹ of § 24 of this Act shall be paid without the agreement specified in subsection 7 of the same section to a person who receives pension upon entry into force of this section and whose years of pensionable service include the pension qualifying period provided for in clause 12 of subsection 2 of § 28 of this Act.

 (2) A person specified in clause 11 of subsection 11 of § 24 of this Act who does not consent to the payment of the pension supplement to the person whose years of pensionable service include the pension qualifying period provided for in clause 12 of subsection 2 of § 28 of this Act may submit an application to the Social Insurance Board on the basis of which payment of the pension supplement is terminated to the person specified in subsection 1 of this section. The pension supplement shall be continued to be paid pursuant to the agreement provided for in subsection 7 of § 24 of this Act to one person specified in clause 11 of subsection 11 of the same section.
[RT I, 02.07.2012, 2 – entry into force 01.01.2018 (date of entry into force changed – RT I, 11.07.2014, 2)]

 (3) If an obligated person has not chosen to make additional contributions on the basis of subsection 7 of § 72³ of the Funded Pensions Act, the pension supplement shall be calculated for the person on the basis of clause 2 of subsection 11 of § 24 of this Act, taking account of the specification that it shall cover all children born between 1 July and 31 December 2020.
[RT I, 03.01.2019, 1 – entry into force 13.01.2019]

 (4) If an obligated person has not chosen to make supplementary contributions on the basis of subsection 6 of § 72⁵ of the Funded Pensions Act, the pension supplement shall be calculated for the person on the basis of clause 2 of subsection 11 of § 24 of this Act, taking account of the specification that it shall cover all children born up to six months before the obligation to make contributions accompanying the submission of a choice application specified in subsection 1 of § 72⁶ of the Funded Pensions Act has arisen for the person.
[RT I, 27.10.2020, 1 – entry into force 06.11.2020]

 (5) A pension supplement provided for in clause 1¹ of subsection 1¹ of § 24 of this Act shall not be added to old-age pension calculated on the basis of clause 2 of subsection 5¹ and clause 2 of subsection 5² of § 11 and § 61¹⁷ of this Act or on the basis of clause 2 of subsection 1 of § 18 and § 6117 of the wording of this Act in force until 1 January 2016.
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

§ 61⁹.  Application of this Act in connection with entry into force of the Work Ability Allowance Act

 (1) A person who has been declared permanently incapacitated for work after 1 July 2010 and a person specified in subsection 3 of § 58 of this Act shall have the right to apply for an examination or re-examination for establishment of permanent incapacity for work provided for in this Act from 1 July 2016 until 31 December 2016.

 (2) As of 1 July 2016, a person has the right to receive a pension for incapacity for work or a national pension on the basis of incapacity for work provided for in this Act if the person has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work and the person complies with other requirements for receiving a pension for incapacity for work or a national pension on the basis of incapacity for work provided for in this Act.

 (3) Chapters 3 and 9 of the wording of this Act in force before 1 July 2016 and implementing provisions issued on the basis thereof shall apply to a person who has the right to receive a pension for incapacity for work on the basis of a bilateral international agreement entered into by the Republic of Estonia and who is residing in the territory of the other party, until the amendment of the international agreement. If a person settles in the Republic of Estonia from the territory of the other party, payment of the pension for incapacity for work to the person shall continue until the expiry of the term of permanent incapacity for work.

 (4) Subsection 11 of § 16 of the wording of this Act in force before 1 January 2016 shall apply to a person who applies for an examination for establishment of permanent incapacity for work together with determination of the degree of severity of disability until 31 December 2016.

 (5) The wording of this Act in force before 1 July 2016 shall apply upon retroactively establishing the disability of a disabled child or a person under 18 years of age who is disabled since childhood.
[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 61¹⁰.  Grant of survivor's pension to person who is permanently incapacitated for work

  The condition provided for in § 20 and subsection 4 of § 41 of this Act concerning partial or no work ability established on the basis of the Work Ability Allowance Act is also met if the person has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work on the basis of this Act or whose category of disability determined for an unspecified term on the basis of the State Allowances Act is deemed to correspond to the permanent incapacity for work determined until the pensionable age pursuant to § 58 of this Act.

[RT I, 17.12.2015, 1 – entry into force 01.07.2016]

§ 61¹¹.  Requirement for pension qualifying period and amount of old-age pension of person who is declared permanently incapacitated for work

 (1) In the case of a person who has been declared permanently incapacitated for work with a 40 to 100 per cent loss of capacity for work, the requirement for a pension qualifying period provided for in subsection 2² of § 7 of this Act shall be reduced by one year for each three years during which the person had been established to have permanent incapacity for work.

 (2) The condition of no work ability provided for in subsection 51 of § 11 of this Act is deemed to be complied with also in the case of a person who has been declared permanently incapacitated for work with a 100 per cent loss of capacity for work.

 (3) The condition of partial work ability provided for in subsection 52 of § 11 of this Act is deemed to be complied with also in the case of a person who has been declared permanently incapacitated for work with a 40 to 90 per cent loss of capacity for work.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹².  Processing of applications for examination for establishment of permanent incapacity for work and applications for pension for incapacity for work

 (1) Applications for the examination for establishment of permanent incapacity for work submitted before 1 January 2017 shall be reviewed and permanent incapacity for work shall be established on the basis of the version of this Act hitherto in force.
[RT I, 17.12.2015, 1 – entry into force 01.01.2017]

 (2) An application for pension for incapacity for work of a person who has been declared permanently incapacitated for work as a result of an examination for establishment of permanent incapacity for work specified in subsection 1 of this section submitted before 1 January 2017 shall be reviewed and a pension for incapacity for work shall be granted on the basis of the version of this Act hitherto in force.

[RT I, 17.12.2015, 1 – entry into force 01.01.2017]

 (3) If a person disagrees with the results of an examination for establishment of permanent incapacity for work by the Social Insurance Board provided for in subsection 1 of this section, the person shall file a challenge with the Social Insurance Board pursuant to the procedure provided for in § 40 of this Act. The Social Insurance Board shall conduct a further examination if necessary. A challenge shall be resolved within sixty days after registration of the challenge by the Social Insurance Board. If a person disagrees with a decision on the challenge, he or she has the right to file an appeal with an administrative court under the conditions and pursuant to the procedure provided by the Code of Administrative Court Procedure.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹³.  Decisions concerning previously established permanent incapacity for work

 (1) On the date of application for re-examination set out in the results of the examination for establishment of permanent incapacity for work, a person may contact the Estonian Unemployment Insurance Fund for the assessment of work ability pursuant to the procedure provided for in the Work Ability Act unless otherwise provided for in this Act.

 (2) A person has the right to contact the Estonian Unemployment Insurance Fund for the assessment of work ability pursuant to the procedure provided for in the Work Ability Act before the date of re-examination set out in the results of the examination for establishment of permanent incapacity for work.

 (3) The results of the examination for establishment of permanent incapacity for work obtained on the basis of this Act shall be declared invalid as of the month following the calendar month of making the decision concerning the assessment of work ability on the basis of the Work Ability Allowance Act.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁴.  Previously granted pensions for incapacity for work and national pensions

 (1) For the purposes of this Act and other Acts, pension for incapacity for work is also deemed to be state pension.

 (2) Subsection 3 of § 48 of this Act shall also apply to the reclamation of amounts of pensions for incapacity for work and national pensions paid to persons declared permanently incapacitated for work.

 (3) Pensions for incapacity for work shall also be financed out of the sources for covering expenditure prescribed for state pension insurance specified in clauses 1–5 of subsection 1 and subsection 1¹ of § 56 of this Act.

 (4) Pension for incapacity for work or national pension on the basis of permanent incapacity for work shall be paid upon application therefor to a person specified in subsection 3 of § 58 of this Act in the determined amount until the person attains pensionable age. Chapters 1 and 6–13 of this Act shall apply to granted pensions for incapacity for work and national pensions on the basis of incapacity for work unless otherwise provided for in this Act.

 (5) Pension for incapacity for work or national pension on the basis of incapacity for work shall be paid upon application therefor to a person declared permanently incapacitated for work on the basis of an application for an examination for establishment of permanent incapacity for work submitted before 1 January 2017 in the determined amount for the specified term. Chapters 1 and 6–13 of this Act shall apply to granted pensions for incapacity for work and national pensions on the basis of incapacity for work unless otherwise provided for in this Act.
[RT I, 17.12.2015, 1 – entry into force 01.01.2017]

 (6) A decision to grant pension made on the basis of a decision on determination of the category of disability or the results of an examination for establishment of permanent incapacity for work specified in subsection 5¹ of § 58 and § 61¹³ of this Act shall be revoked and the payment of pension shall terminate as of revocation of the decision on determination of the category of disability or the decision concerning the assessment of work ability.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁵.  Continuation of payment of pension for incapacity for work and national pension based on incapacity for work

 (1) The results of the examination for establishment of permanent incapacity for work of a person shall be extended without establishment of permanent incapacity for work and payment of granted pension for incapacity for work and national pension on the basis of incapacity for work and pension supplements shall continue in the previously determined amount if the duration of his or her permanent incapacity for work expires up to 180 days before attaining pensionable age. On the basis of an application of the person, the results of the examination for establishment of permanent incapacity for work of the person shall not be extended.

 (2) Subsection 1 of this section shall apply to persons born between the years 1953 and 1960 if the duration of their permanent incapacity for work expires up to 180 days before the following ages according to the year of birth:

 (3) Chapters 1 and 6–13 of this Act shall apply to pensions for incapacity for work and national pensions on the basis of incapacity for work paid on the basis of this section unless otherwise provided for in this Act.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁶.  Transfer from national pension to pension for incapacity for work and recalculation of previously granted pension for incapacity for work

 (1) A pension for incapacity for work shall be granted on the basis of an application for the period of permanent incapacity for work pursuant to the version of this Act in force until 1 January 2017 to a person declared permanently incapacitated for work to whom national pension has been granted on the basis of incapacity for work on the basis of clause 2 of subsection 1 of § 22 of the version of this Act hitherto in force, if the person has earned the following pension qualifying period in Estonia depending on age by the time of the transfer from national pension to pension for incapacity for work:

[RT I, 17.12.2015, 1 – entry into force 01.01.2017]

 (2) A person to whom pension for incapacity for work has been granted on the basis of clause 2 of subsection 1 of § 18 or in the amount provided for in subsection 3 of § 18 of the version of this Act in force until 1 January 2017 has the right to apply for recalculation of the pension for incapacity for work pursuant to the provisions of clause 1 of subsection 1 of § 18 and subsection 2 of § 18 of the version of this Act in force until 1 January 2017 if the pension calculated on the basis of such provisions is higher.

[RT I, 17.12.2015, 1 – entry into force 01.01.2017]

 (3) In the cases provided for in subsections 1 and 2 of this section, a pension supplement provided for in § 24 of this Act shall be added to the pension for incapacity for work, taking into account the provisions of the specified section.

 (4) Compliance with the requirement for a pension qualifying period which grants the right to receive a pension for incapacity for work shall be determined on the basis of unrounded years of pensionable service, taking into account the provisions of this Act concerning calculation of years of pensionable service.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁷.  Transfer from pension for incapacity for work to old-age pension and early retirement pension

 (1) When a person to whom a previously granted pension for incapacity for work is paid until attainment of the pensionable age attains such age, an old-age pension shall be granted to him or her without a pension application.

 (2) In the case specified in subsection 1 of this section, an old-age pension shall be calculated on the basis of the existing pension qualifying period at the time of grant of the old-age pension pursuant to the provisions of § 11 of this Act.

 (3) If an early retirement pension was paid to a person before the grant of a pension for incapacity for work, payment of the early retirement pension shall continue after attaining the pensionable age without a pension application. If payment of the pension for incapacity for work terminates before the person attains the pensionable age, payment of the early retirement pension shall continue without a pension application as of the day following the day of termination of the incapacity for work.

 (4) In the case specified in subsection 3 of this section, the same percentage reduction which was the basis for calculation of the early retirement pension for the first time shall apply upon calculation of the early retirement pension.

 (5) If an old-age pension calculated pursuant to subsection 2 of this section proves to be less than the pension previously paid, the old-age pension shall be paid in the previous amount.

 (6) If a person to whose pension for incapacity for work a pension supplement provided for in § 24 of this Act and subsections 1 and 4 of § 14 of the Persons Repressed by Occupying Powers Act is transferred to an old-age pension or if payment of the early retirement pension to such person is continued, he or she retains the right to receive the previous pension supplement.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁸.  Specifications upon grant and payment of national pension

 (1) Persons who have attained pensionable age and who were paid the national pension on the basis of permanent incapacity for work until the persons attained pensionable age are also entitled to receive national pension.

 (2) National pension shall be granted to the persons specified in subsection 1 of this section for life.

 (3) The amount of national pension of the persons specified in subsection 1 of this section shall be 100 per cent of the national pension rate.

 (4) The provisions of this Act concerning national pension shall apply to the national pension provided for in this section.
[RT I, 13.12.2014, 1 – entry into force 01.01.2017 (date of entry into force changed – RT I, 17.12.2015, 1)]

§ 61¹⁹.  Implementation of subsections 3 and 5 of § 13

 (1) Regulations established by the Government of the Republic on the basis of subsections 3 and 5 of § 13 of this Act shall be effective as of 1 January 2017 in so far as they are not contrary to this Act.

 (2) The actual and the estimated average amount of the pension insurance part of individually registered social tax entered in the state pension insurance register before 1 January 2017 shall be transferred to the social protection information system on 1 January 2017.
[RT I, 08.07.2016, 1 – entry into force 01.01.2017]

§ 61²⁰.  Pension right for person providing foster care of child

  A caregiver of a child specified in the wording of this Act as valid before 1 January 2018 shall also be considered a foster parent specified in clauses 1–3 of subsection 1 of § 10, clauses 1 and 2 of subsection 1¹ of § 24 and clause 12 of subsection 2 of § 28 of this Act.
[RT I, 28.11.2017, 2 – entry into force 01.01.2018]

§ 61²¹.  Grant of early retirement pension until 31 December 2025

 (1) If a person requests to be granted and paid early retirement pension, the wording of this Act in force before 1 January 2021 shall apply to the grant and payment of pension, taking account of the specifications provided for in this section.

 (2) In 2021, persons whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 16 years have the right to receive early retirement pension.

 (3) In 2022, persons whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 17 years have the right to receive early retirement pension.

 (4) In 2023, persons whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 18 years have the right to receive early retirement pension.

 (5) In 2024, persons whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 19 years have the right to receive early retirement pension.

 (6) In 2025, persons whose pension qualifying period provided for in Chapter 8 of this Act and earned in Estonia is at least 20 years have the right to receive early retirement pension.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 61²².  Continuation of payment of early retirement pension

  A person who has been granted early retirement pension before 1 January 2021 shall be paid early retirement pension on the basis of the wording of this Act in force before 1 January 2021.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 61²³.  Calculation of deferred old-age pension

  Where a person who has attained the pensionable age provided in § 7 or established on the basis of subsection 6 of § 7¹ of this Act and whose pension qualifying period earned in Estonia is at least 15 years has not applied for deferred old-age pension before 1 January 2021, the person has the right to choose once whether the person is granted flexible old-age pension on the basis of the wording entered into force on 1 January 2021 or deferred old-age pension on the basis of the wording in force before 1 January 2021.
[RT I, 19.12.2020, 1 – entry into force 01.01.2024]

§ 61²⁴.  Recalculation of previously granted old-age pension

  Old-age pension granted before 1 January 2021 shall be recalculated on the basis of an application of the person or the payment thereof shall be suspended pursuant to the procedure provided for in § 25¹ of this Act.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 61²⁵.  Transfer from pension for incapacity for work to flexible old-age pension

  A person who is paid a pension for incapacity for work and to whom flexible old-age pension is granted during the period of duration of incapacity for work shall be paid the flexible old-age pension. If the pension for incapacity for work terminates before the person attains the pensionable age, payment of the flexible old-age pension shall continue without a pension application as of the day following the day of termination of the incapacity for work.
[RT I, 03.01.2019, 1 – entry into force 01.01.2021]

§ 61²⁶.  Calculation of pension supplement upon reduction of pension

  If the old-age pension of a person has been reduced on the basis of § 11¹ of this Act and the old-age pension of the person would be reduced due to the inclusion of the pension supplement in the reduction of the pension as of 1 June 2022, the payment of the old-age pension to the person shall continue together with the pension supplement in the former amount until the total amount of the old-age pension of the person upon recalculation exceeds the amount of the former amount
[RT I, 18.02.2022, 1 – entry into force 01.06.2022]

§ 61²⁷.  Grant and payment of old-age pension under favourable conditions and superannuated pension

 (1) The payment of the pension to a person to whom an old-age pension under favourable conditions has been granted and is paid on the basis of the Old-Age Pensions under Favourable Conditions Act in force until 31 December 2030 is continued on the former conditions.

 (2) The payment of the pension to a person to whom a superannuated pension has been granted and is paid on the basis of the Superannuated Pensions Act in force until 31 December 2036 is continued on the former conditions.

 (3) In the case an old-age pension under favourable conditions has not been granted to a person but the person has the right to receive the pension, the pension is granted on the basis of the wording of the Old-Age Pensions under Favourable Conditions Act in force before 1 January 2031.

 (4) In the case a superannuated pension has not been granted to a person but the person has the right to receive the pension, the pension is granted on the basis of the wording of the Superannuated Pensions Act in force before 1 January 2037.
[RT I, 22.02.2023, 1 – entry into force 04.03.2023]

§ 61²⁸.  Grant and payment of national pension to person receiving social benefits granted based on § 140 of Social Welfare Act

 (1) The Social Insurance Board grants at the latest on 31 March 2029 a national pension provided in this Act to a person receiving social benefits on the basis of § 140 of the Social Welfare Act who complies with the requirements for receiving a national pension provided in clause 1 of subsection 1 of § 22 of this Act.

 (2) A person specified in subsection 1 of this section who, during the payment of social benefits granted on the basis of § 140 of the Social Welfare Act, received other income the amount of which was less than the national pension rate per calendar month, is paid a national pension also in the case the person receives a pension from another state the amount of which is less than the national pension rate per calendar month.
[RT I, 14.12.2023, 1 – entry into force 01.01.2024]

Chapter 14 FINAL PROVISIONS  

§ 62. – § 67. [Omitted from this text.]

§ 68.  Entry into force of Act

 (1) This Act enters into force on 1 January 2002.

 (2) Section 7¹ of this Act is in force until 31 December 2029.
[RT I, 03.01.2019, 1 – entry into force 01.01.2024]