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For the pension recipient

 

Pension payments

We shall pay pension, as you wish, either:

  • To your bank account in Estonia;
  • To another person’s bank account if you fill in the form at our customer service, or forward the notarially certified application;
  • At your cost, in cash to your home by courier;
  • At your cost, to the pension recipient’s bank account in a foreign country.

Your pension will be brought to you in cash by a courier for free, if you have reduced mobility, or when you live in the countryside and the bank services are hard to access. For this, you should file an application explaining the need to receive the pension by courier.

If the courier came while you were not at home, the courier will take your money back. If you have not received your pension for six months, we shall halt the pension payments. You should file an application to continue the pension payments. We will pay your pension starting from the suspension.

If your pension is brought but you are at a hospital, you can authorize someone to receive your pension instead of you. The authorization is attested by the manager of the medical institution (head of the medical institution), and such a document is valid also retrospectively (by six months) to take out the previously unreceived pension.

 

Pension and income tax

 

From the year 2018 the basic exemption amount is increased for all citizens, also for pensioners, to 500 euros. 
Also starting from the year 2018, an increased basic exemption will not be applied to pension and compensation anymore. 

The applicable overall tax-free amount can be divided into three major categories:

  • If your annual income is up to 14 400 euros or 1200 euros per month, you can use the maximum basic exemption that is 6000 euros per year or 500 euros per month.
  • If your monthly income is between 1200–2100 euros (annual income between 14 400–25 200 euros), your basic exemption will begin to increase and the closer it is to 2100 euros the lower it will be.
  • If your monthly income exceeds 2100 euros (over 25 200 euros per year), no basic exemption will be applied.

Therefore, the monthly income of a pensioner with a higher income will be decreased by the maximum of 83.2 euros due to the changes.

If your place of residence is not Estonia, you will not be affected by the income tax changes of 01.01.2018  and the taxation principles of your Estonian pension will remain the same as in 2017.

More information: Amount of tax-free income beginning from 1 January 2018

 

Pension and employment

 

Earning a profit taxed with social tax, or being an entrepreneur, is considered as working.

In general, working does not rule out receiving a pension. When becoming of the pensionable age, you can continue working and receive both salary and old-age pension.

EXCEPTIONS:

Early retirement pension is not paid while the person works. When becoming of the pensionable age, the early retirement pension is also paid if the person works.

Of the survivor’s pension recipients, only children (until the age of 18, or, in the case of students, until the age of 24) are allowed to work and receive the pension simultaneously. No other survivor’s pension recipients are allowed to work and receive the pension simultaneously.

Superannuated old-age pension recipients (specified in lists 1 and 2) are not allowed to work on positions contributing to the superannuation. When becoming of the pensionable age, the recipients of the superannuated pension are entitled to continue working on positions contributing to the superannuation, and to receive the pension simultaneously.

We will stop paying the earned years’ pension if the pension recipient continues to work on the position for which the pension has been appointed. When continuing working on a position that does not contribute to the earned years’ pension, the pension shall be paid in full.

Police, prison, and rescue workers may continue working on their profession and receive the earned years’ pension.

 

Pension offsetting

 

In life, situations could occur when a bailiff needs to withhold a part of your pension, or you have been paid more pension than you actually had a right for, and this excess amount must be returned to the state.

Deductions can be made from the pension:

  • On the basis of the Code of Enforcement Procedure (for example, withdrawals by the bailiffs)
  • Based on decisions by the Social Insurance Board (withdrawals to compensate the excess pension payments).

Based on the Code of Enforcement Procedure, up to 50% of the pension can be deducted, but the person must receive at least half of the national pension rate (link rahvapensionile). If you disagree with the bailiff’s demand, we suggest you contact the bailiff directly, or consult the Estonian Chamber of Bailiffs and Trustees in Bankruptcy.

Based on decisions by the Social Insurance Board, up to 20% of the pension can be deducted, but you receive at least half of the national pension rate. According to your agreement with the Social Insurance Board, also a smaller or larger amount can be deducted from your pension.
 

 

Pension certificate

Pension certificate is a pensioner’s document with photograph. It is not a personal identification document, but certifies that the person receives pension from us. The pension certificate is issued to you together with the pension payment decision from our customer service (link klienditeenindusetele).

To get the pension certificate, bring us a photograph with measures 3x4.

If you lose the pension certificate, the customer service will issue a duplicate after you bring us a new 3x4 cm photograph.

Fixed-term pension certificates are extended in our customer services.

Holders of the pension certificate are offered different discounts at several banks, transport companies, entertainment establishments, concert venues, museums, spas, health centres, pharmacies, cosmetics, ice arenas, etc. Discounts offered for the holders of the pension certificate are directly related to the service providers, not the Social Insurance Board.

 

 

Kati Kümnik

head of the compensations department

Kati Kümnik organizes and directs the work of the compensation department: sets goals, gives instructions to officials, and performs and mediates tasks related to the organization of pensions. She also advises the Social Insurance Board on issues related to pensions and organizes the development of a pension system.

 
info@sotsiaalkindlustusamet.ee