You are here

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

225 euros from pensions are exempt from the income tax and no application must be filed for it. The exemption from income tax is calculated from your pension automatically.

The supplementary exemption from income tax (170 euros per month) must be applied for separately.

  • If you are not working and want the pension calculation also to consider the supplementary exemption from income tax (170 euros per month), then you must file an application to us (link blankettide lehele).
  • If you are a working pensioner, you must choose whether the income tax exemption is calculated from the pension or the salary. It may not apply for both amounts. In the case the income tax exemption is applied for both, you must later return the unduly received amount to the Tax and Customs Board.

The application for the income tax exemption is filed only once. There is no need to file a new application after the pensions increase or a new year arrives.

If you are an Internet user, then you can send the application for the income tax exemption from the state portal eesti.ee when you log in using your ID card, MobiilID, or Internet bank authorization. The application form is also available on our website (http://www.sotsiaalkindlustusamet.ee/blanketid/), you can email it (but sign it digitally first!), mail it, or bring it over to one of our customer services (link klienditeenindustele).

Income Tax Return

Nobody must file an application to get the monthly minimum exempt from tax (170 euros). If you wish, you can always file the yearly income tax return to the Tax and Customs Board. A married couple is free to file a joint income tax return.

When is it useful to file a joint income tax return? For example, when the pension of one spouse is lower than the tax-free minimum, and no income tax has been calculated from their pension, and the pension of the other spouse exceeds 395 euros and the income tax has been calculated from theirs. Filing a joint income tax return enables to get a part of the paid income tax back.

 

Pension and working

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 deductions

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