REPUBLIC OF LITHUANIA
LAW
ON
STATE SOCIAL INSURANCE PENSIONS
CHAPTER 1
GENERAL PROVISIONS
Persons
Article 1. The Right to State Social Insurance Pension
Permanent residents of the Republic of Lithuania who have
been insured by compulsory state social pension insurance by
themselves or by someone for them for the period established
under this Law, shall have the right to receive state social
insurance pension (hereinafter referred to as SSIP). Citizens of
the Republic of Lithuania permanently residing abroad are
entitled to draw SSIP if it is established by international
agreements or according to the procedure established by the
Government of the Republic of Lithuania.
Foreign citizens permanently residing in Lithuania and
stateless persons shall have the right to SSIP under this Law if
they were insured by state social pension insurance by themselves
or by someone for them for the period established under this Law,
if the laws of the Republic of Lithuania or international
agreements do not provide other conditions of pensionary
maintenance for these persons.
Article 2. Persons Insured by State Social Pension
Insurance
The following persons shall be compulsorily insured by state
social pension insurance:
1) persons employed under employment contract, as well as
employed in elective institutions on the basis of membership,
partnerships, agricultural companies or co-operative
organizations and receiving remuneration;
2) officers of the Ministry of Internal Affairs, police and
other servicemen of internal affairs, commissioned officers of
internal affairs, non-commissioned re-enlistees and soldiers;
3) commissioned officers of national defence service, non-
commissioned re-enlistees and soldiers;
4) officers of state security;
5) sole proprietors and self-employed persons;
6) farmers and adult members of their families who work on
the farm;
7) soldiers in obligatory national defence service.
Other persons may be insured by SSPI on a voluntary basis at
state social insurance offices transacting this insurance
according to the procedure established by the Government of the
Republic of Lithuania.
Article 3. Eligibility for State Social Insurance Pensions
SSI pensions shall be awarded to persons specified in
Articles 1-2 of this Law if they meet the requirement of a state
social pension insurance period established by this Law for
awarding a relevant type of pension and upon attaining the age
established by this Law, or are recognized as the disabled, and
upon the death of such persons - to the members of their family.
TYPES OF PENSIONS
Article 4. The Types of State Social Insurance Pensions
SSI old age, disability, widow's and orphan's (loss of
supporter) pensions are provided under this Law.
Article 5. The Right to Choose a Type of Pension
Persons who are entitled to receive at the same time both
SSI old age and disability pensions shall be awarded the pension
which is higher or one of them at their own choice. Widow's and
orphan's pensions shall be paid alongside with old age and
disability pensions.
Persons entitled to a SSI pension shall not loose the right
to draw other state pensions as well as non-state pensions if the
laws do not provide otherwise.
THE STRUCTURE OF PENSIONS
Article 6. The Structure of the SSIP
SSIP shall consist of the basic part and supplementary part.
The basic part of SSI pension guarantees minimum pensionary
maintenance for persons who have compulsory period of state
social pension insurance and who meet other conditions
established by this Law.
The basic part of SSI pension equals the full state social
insurance pension (Article 12) or a portion thereof.
The supplementary part of SSI pension provides supplementary
pensionary maintenance for those persons who worked under
employment contract or on the basis of membership, as well as for
officers and servicemen (items 1-4 of Par.1 of Article 2) who
were insured by state social pension insurance taking into
account this insurance period and income covered by insurance
earned during the insurance period.
The Source of the Payment of Pensions
Article 7. The Source of the Payment of SSI Pensions
State social insurance pensions shall be paid from the
budget of the state social insurance of the Republic of
Lithuania.
Insurance Period
Article 8. Person's Period of State Social Pension Insurance
Insured person's period of SSPI comprises a person's SSPI
period acquired when the person was working under employment
contract or on the basis of membership or service and the
person's SSPI period acquired when the person was self-employed.
The period of SSPI when the person was working under employment
contract or on the basis of membership or service shall be
acquired by the persons specified in items 1-4 of Par.1 of
Article 2. It shall comprise:
1) the period during which these persons pay by themselves
state social insurance pension contributions established by law
or the contributions are paid for them;
2) the period during which these persons receive SSI
sickness (temporary incapacity for work), maternity allowances
and unemployment benefit. The period during which unemployment
benefit was paid shall be included into the period of insurance
only for those persons who have been insured against
unemployment.
Self-employed persons shall acquire SSPI period who are
specified in items 5-7 of Par.1 of Article 2. The period of SSPI
shall comprise the time during which these persons pay compulsory
state social insurance pension contributions established by law
or during which such contributions have been paid for them.
Article 9. Computation of the SSPI Period for Persons who
have been Employed under Employment Contract or on
the Basis of Membership or Service
If wages and other income of a person for whom the period of
SSPI is being calculated when working under employment contract
or on the basis of membership or service resulting from which the
compulsory SSPI contributions have been paid, are not less than
the sum of minimum wages per all months in a calendar year, then
the entire calendar year is included to the period of SSPI. In a
contrary case the period of SSPI in that year shall be considered
to be proportionally lower.
In the retirement year all months prior to the retirement
month shall be included in the period of SSPI obtained when
working under employment contract, or on the basis of membership
or service if wages and other income on which compulsory SSPI
contributions have been paid are not lower than the sum of
minimum wages per all these months. In a contrary case the period
of SSPI in a year of retirement shall be considered to be
proportionally lower.
Article 10. Calculation of the SSPI Period for Self-employed
Persons
The period of SSPI in a calendar year of the person for whom
SSPI period is being calculated shall comprise the number of
months for which he has paid the established premium of SSIP or
such contributions have been paid for him.
Article 11. Calculation of SSPI Period
The person's period of SSPI shall be calculated by summing
up said person's period of SSPI of each year acquired while
working under employment contract on the basis of membership or
service and the SSPI period obtained during self-employment.
Only one year of the period of SSPI may be included in one
calendar year.
The period of SSPI shall be expressed in years. If the part
thereof has been calculated in months the number of months shall
be divided by twelve.
AMOUNTS USED FOR THE CALCULATION OF BASIC AND SUPPLEMENTARY PART
OF PENSION
Article 12. The Amount of the Basic State Social Insurance
Pension
The amount of SSI basic pension may not be less than 110% of
the minimum level of living (MLL).
The amount of SSI basic pension shall be approved by the
Government of the Republic of Lithuania on the proposal of the
State Social Insurance Council.
Article 13. The Person's Insured Income
All income of persons specified in items 1-4 of Par.1 of
Article 2, on which SSIP contributions have been paid, as well as
SSI sickness benefits (temporary incapacity for work), maternity
allowances and unemployment benefits received, shall be
considered as the insured income.
Article 14. Average Monthly Insured Income
Average monthly insured income shall be the average insured
income of all insured persons specified in items 1-4 of Par.1 of
Article 2, allotted to one insured person.
Average monthly insured income shall be calculated according
to the income on which SSI pension contributions have been paid
into the State Social Insurance Budget, as well as according to
the paid state social insurance benefits.
Average monthly insured income according to the annual data
must be approved not later than by 1 March of the following year.
Average monthly insured income according to the quarterly
data shall be approved by the State Social Insurance Council no
less frequently than each quarter according to the State Social
Insurance Budget indices for the preceding quarter.
Average monthly insured income according to the quarterly
data must be approved no later than within a month following the
start of a new quarter.
Article 15. Calculation of the Annual Rate of Insured Income
The rate of insured income of the insured person shall be
calculated by dividing insured income per a calendar year by the
number of months included in the SSPI period obtained while
working under employment contract or on the basis of membership
or service and an average monthly insured income of that year
calculated according to the data of that year.
If the pension is being awarded prior to the approval of the
average monthly insured income of the preceding year, the last
approved average monthly insured income according to the
quarterly data shall be used for the calculation of the person's
rate of insured income.
Article 16. The Rate of the Person's Insured Income
The rate of the insured person's insured income shall be
calculated as the average of annual rates based on the 25 most
favourable calendar years of SSPI after 1 January 1994 chosen by
a person, accumulated while working under employment contract or
on the basis of membership or service.
This provision shall be implemented according to the
procedure established in Article 54 of this Law.
If the person's period of SSPI accumulated while working
under employment contract or on the basis of membership or
service is less than the number of years specified in Par. 1 of
this Article but is not less than one month, the person's rate of
insured income shall be calculated on the basis of the acquired
period of insurance.
If the period of insurance is less than one month, the
person's rate of insured income shall be the ratio between
monthly wage of the insured person established by employment or
another contract and the last approved average insured monthly
wage. If the wages have not been established, it shall be
considered that it is equal to the minimum monthly wage of that
month.
CHAPTER 2
STATE SOCIAL INSURANCE OLD AGE PENSIONS
Article 17. The Right to Draw SSI Old Age Pension
A person shall be entitled to draw SSI old age pension if he
meets the following requirements:
1) reaches the pensionable age established by this Law;
2) has the minimum SSPI period established for the old age
pension;
3) has no less than 3 years of SSPI period within the last
5 years
or has one year of SSPI period within the last one year,
or has no less than 35 years of SSIP period.
The clause of item 3 of Par.1 of this Article shall not
apply to officers and servicemen (items 2 - 4 Par.1 Article 2)
who are in retirement and are eligible to draw state pension of
officers and servicemen.
The person must meet the requirements set forth in items 2
and 3 of Par.1 of this Article on the day he reaches pensionable
age or on the day he applies for pension upon reaching
pensionable age.
Article 18. Old Age Pension Age
As from 1 January 2009 the pensionable age shall be 60 years
for women and 62 years and 6 months for men. (As amended 21
December 1994)
Article 19. Minimum and Obligatory Insurance Period for the
Old Age Pension
The minimum state social insurance period for SSI old age
pensions is 15 years.
The obligatory state social insurance period for SSI old age
pension shall be 30 years from 1 January 1999 for men and as from
1 January 2004 for women.
The procedure for the enforcement of this Article shall be
established by Article 55 of this Law.
Article 20. The Amount of the Basic Part of SSI Old Age
Pension
The basic part of the SSI old age pension shall be equal to
the basic pension when the person has the obligatory state social
insurance period for the old age pension.
If the person has not the obligatory state social insurance
period but has the minimum state social insurance period for old
age pension, the basic part of the SSI old age pension is
calculated in proportion to the person's insurance period by
multiplying the basic pension and the available person's period
and dividing by the obligatory insurance period.
Article 21. Amount of the Supplementary Part of SSI Old Age
Pension
The supplementary part of the SSI old age pension is
calculated for persons who are eligible to draw SSI old age
pension and who have the state social insurance period acquired
while working under employment contract or on the basis of
membership or service according to the formula 0.005 x S x K x D
where :
S - stands for the person's state social insurance period
acquired while working under employment contract or on the basis
of membership or service;
K - stands for the rate of the person's insured income
(Article 16);
D - stands for the average monthly insured income according
to the quarterly data, which were confirmed by the first day of
the month for which the pension is paid (Article 14).
Article 22. Reduction of the Pensionable Age and
Obligatory State Social Insurance Period for
Persons Suffering from Hypophysealis Nanosomya
For persons who suffer from hypophysealis nanosomya old age
pension established by Article 18 shall be reduced by 15 years
and the obligatory and minimum insurance period established by
Article 19 shall be reduced by 10 years.
Article 23. Payment of the Old Age Pension to Pensioners
with Insured Income
Pensioners who are 65 years of age and over shall be paid
full SSI old age pension established by this Law, irrespective of
their income.
Pensioners who are under 65 years of age and have the
obligatory state social pension insurance period and the insured
income of which does not exceed 1.5 minimum monthly salary shall
be paid full SSI old age pension. If their insured income exceeds
1.5 minimum monthly salary, they shall be paid only the basic
part of the SSI old age pension. (Amended 21 December 1994)
Pensioners who are not specified in Par.1 and 2 of this
Article and having insured income state social insurance old age
pension shall not be payable.
For the persons who suffer from hypophysealis nanosomya, the
provisions of this Article shall be applied by reducing age and
obligatory insurance period requirements according to Article 22.
Article 24. Increase of the Old Age Pension due to the
Deferred Application
If at a certain time the person becomes eligible to draw the
old age pension and has the obligatory state social pension
insurance period but he does not take it and applies for it at a
later time, the pension shall be calculated for him according to
the data at the time of application and shall be increased by 4
percent of the calculated amount for each full year after the
date when the person having the obligatory insurance period
becomes eligible to draw an old age pension.
At the request of the person who is entitled to draw an old
age pension and has the obligatory state social pension insurance
period the payment of pension may be deferred. In this event the
pension shall be recalculated according to the data at the moment
of application and shall be increased by 4 percent of the
calculated amount for each full year after the moment of the
deferment of payment.
Having deferred the payment of pension for an incomplete
year, the pension shall be paid for the last months of the year
of deferment but it shall not be subject to the increase. For the
purpose of the payment of pension the pensioner's insured income
and age (Article 23) during the period for which the pension is
being paid shall be taken into account.
If the application for pension is deferred for more than
five years, the pension shall be increased only for five years of
deferment.
If the right to draw state social insurance old age pension
was once acquired, upon deferment of the application the
requirement set forth in item 3 of Par.1 of Article 17 shall not
be applicable in awarding the pension.
The State Social Insurance Council may establish greater
percentage of the increase of pension due to the deferred
application.
CHAPTER 3
STATE SOCIAL INSURANCE DISABILITY PENSIONS
Article 25. The Concept of Disability
Disability means total or partial loss of working capacity,
which is either permanent or remains after the termination of the
payment of sickness allowances and which limits the person's
possibilities to engage in income earning activities.
Article 26. Groups of Disability
Depending on the degree of the incapacity for work, three
disability groups shall be established for the purpose of
calculating pensions.
Disability groups, causes, time of occurrence and duration
thereof shall be established by the State Social Examination
Commissions (SSEC), functioning pursuant to their regulations
approved by the Government of the Republic of Lithuania.
The State Social Insurance Board shall be entitled to
dispute the correctness of the determination of disability degree
of a person who is eligible to draw state social insurance
disability pension.
Article 27. The Right to State Social Insurance Disability
Pension
A disabled person shall acquire the right to draw state
social insurance disability pension if on the day the disability
has been determined he meets the following requirements:
1) has the minimum state social pension insurance period
necessary for disability pension;
2) has been insured by state social pension insurance for at
least one year over the past five years
or reaches the state social pension insurance period which
is equal to at least 75 percent of the difference between his age
and 23 years.
The person for whom a group of graver disability is
determined than the disability group that he had previously been
in, he shall become eligible to draw state social insurance
disability pension if he did not have the right to draw such
pension under the conditions set forth in Par.2 of this Article.
The person for whom disability or a group of graver
disability is determined and who does not meet the requirements
set forth in Par. 1 of this Article, shall acquire the right to
draw state social insurance disability pension when at the moment
he applies for pension he has the state social pension insurance
period which is at least 75 percent of the difference between his
age and 23 years but is at least 3 years.
The requirement of item 2 of Par.1 of this Article shall not
apply to officers and servicemen (items 2-4 of Par.1 of Article
2) who are in retirement and have acquired the right to draw
state pension of officers and servicemen.
Article 28. Minimum and Obligatory Insurance Period for
Disability Pension
The persons who are under 23 and for whom disability or the
group of graver disability is assessed during the state social
pension insurance period, shall become entitled to draw state
social insurance disability pension deeming that they meet the
requirements of minimum and obligatory insurance period
established for disability pension and by not applying to them
the requirements set forth in items 1 and 2 of Par.1 of Article
27.
For other persons the following minimum state social pension
insurance period for disability pension shall be established:
until 26 years of age - 1 year;
upon reaching the age of 26 - 2 years;
upon reaching the age of 29 - 3 years;
upon reaching the age of 32 - 4 years;
upon reaching the age of 35 and over - 5 years.
The obligatory state social pension insurance period for the
disability pension shall be:
until 24 years of age - 1 year;
upon reaching the age of 24 - 2 years;
upon reaching 25 - 3 years;
upon reaching the age of 26 - 4 years.
Over 26 years of age the obligatory state social pension
insurance period shall be increased by one year for each one and
a half years of age, but may not exceed the obligatory insurance
period established for the old-age pension.
Article 29. Amount of the State Social Insurance Disability
Pension
SSI disability pension for Group 1 and 2 disabled persons
entitled to receive this pension shall be calculated by adding up
the basic and supplementary parts of disability pension.
The basic part of disability pension shall be equal to the
base pension if the person has the obligatory state social
pension insurance period necessary for disability pension. If the
person does not have the required obligatory insurance period,
the basic part of his disability pension shall be calculated by
multiplying the base pension and the accumulated insurance period
and by dividing it from the obligatory insurance period.
The supplementary part of disability pension shall be
calculated for persons who have the state social insurance period
obtained while working under employment contract or on the basis
of membership or service, in the same manner as the supplementary
part of the old-age pension (Article 21), by including in the
insurance period :
1) the entire person's state social pension insurance period
acquired while working under employment contract, on the basis of
membership or service;
2) the number of years left until the person reaches
pensionable age established for him (Articles 18 and 55). If the
person's state social pension insurance period obtained while
working under employment contract, on the basis of membership or
service is less than the obligatory SSPI period for disability
pension (Article 28), only the proportionately smaller portion of
the total number of years that are left until the pensionable age
shall be credited to the insurance period, which is derived by
multiplying the number of years left until the old-age pension
age and the state social pension insurance period obtained by the
person while working under employment contract, on the basis of
membership or service, and dividing it by the obligatory
insurance period required for disability pension.
The SSI disability pension for the disabled of Group 3 shall
be calculated in the same manner as for the disabled of Group 1
and 2, which then shall be reduced by 50 percent.
Article 30. Supplement to Disability Pension
The supplement in the amount of 50 percent of the state
social insurance basic pension shall be established for the
disabled of Group 1 for their nursing .
Article 31. Disability Caused by Occupational Injury or
Occupational Disease
In the event of disability due to occupational injury or
occupational disease the pension insurance shall be regulated by
the Law on the Compulsory State Work Injuries Insurance .
Article 32. The Payment of Pensions to the Disabled with
Insured Income
The disabled who are of the established pensionable age
(Articles 18 and 55) and over shall be paid the full state social
insurance disability pension awarded to them irrespective of
their income.
The disabled who have insured income and have not reached
the pensionable age established by this Law shall be paid
disability pension only provided they have the obligatory
insurance period required for the disability pension. This
pension shall be paid to:
1) the disabled of Group 1_the full granted disability
pension (excluding the supplement for nursing) irrespective of
the insured income;
2) the disabled of Group 2 and 3 _ the full basic part of
the disability pension and 50 percent of the supplementary part
and to those who have insured income which does not exceed 1.5
minimum monthly salary _ the full state social insurance
disability pension. (Amended 21 December 1994)
CHAPTER 4
STATE SOCIAL INSURANCE PENSIONS TO SURVIVING SPOUSES
AND ORPHANS
Article 33.The Right to Receive Survivor's or Orphan's
Pensions
The spouse and children of the deceased (or declared dead or
missing in the established manner) who was insured by state
social pension insurance, as well as other persons equated to
them, shall be entitled to state social insurance pension of a
surviving spouse or orphan if the deceased was entitled to state
social insurance disability pension under this Law (if he/she was
disabled) or old age pension or was drawing such a pension.
Article 34. Persons Entitled to Receive Survivor's Pension
State social insurance survivor's pension shall be payable
to the following persons:
widow or widower who takes care of the deceased person's
children or adopted children who qualify for an orphan's pension;
widow or widower for whom at the time of the death of
his/her spouse five years are left until the pensionable age or
who is older or recognised as disabled;
the actual spouse, if there are children of the marriage
with the deceased, who may be awarded orphan's pension, supports
them and if there is no spouse of the deceased to whom surviving
spouse's pension may be awarded.
If there are no persons specified in Par.1 of this Article,
the survivor's pension shall be awarded to one of the parents of
the deceased, supporting the children or adopted children of the
deceased, who qualify for the orphan's pension.
In the event of remarriage the survivor's pension shall be
discontinued.
Article 35. Persons Entitled to Receive Orphan's Pension
The state social insurance orphan's pension shall be payable
to the deceased person's children and adopted children under 18,
as well as to older children if they became disabled before
reaching the age of 18.
Step children of the deceased, who prior to his/her death
did not qualify for orphan's pension, shall be entitled to
receive state social insurance orphan's pension under the same
conditions as his/her children.
Full time students of the institutions of higher education,
colleges, vocational and secondary schools registered in the
established manner shall be entitled to the orphan's pension
until graduation but only until they turn 24.
The children of the deceased, who qualify for orphans'
pension shall also retain this right when someone adopts them.
Article 36. The Rate of Survivor's and Orphan's Pensions
The SSI survivor's and orphan's pension shall be calculated
in the same manner as the disability pension for the disabled of
Group 2 (Article 29) and shall be awarded to:
a person who is entitled to receive survivor's pension
(Article 34) _ 50 percent of its amount;
an orphan (Article 35) _ 25 percent of its amount, if one
child is entitled to such pension. If more than one child is
entitled to such pension, the pension shall be divided equally
among the children but no more than 50 percent of the total
calculated amount. If there are no persons qualifying for
survivor's pension, each orphan shall be awarded 25 percent of
the calculated pension but no more than 100 percent of the amount
of this pension.
Upon the death of an old age or disability pensioner, the
SSI survivor's and orphan's pension shall be calculated according
to the old age or disability pension of the deceased in the
manner provided for in Par.1 of this Article without applying the
reduction of a disability pension for the disabled of Group 3
(Par.4 of Article 29) and without including in the amount of
pension Group 1 disability pension supplement.
Article 37.Calculation of Pension for Children who have Lost
both Parents
For children (Article 35) who have lost both their parents
the amount of SSI orphan's pension shall be the aggregate of
orphan's pensions calculated for each dead parent separately.
CHAPTER 5
GRANTING AND PAYMENT OF STATE SOCIAL INSURANCE PENSIONS
AND CONSIDERATION OF DISPUTES CONCERNING PENSIONS
Article 38. Granting of State Social Insurance Pensions
SSI pensions shall be awarded and paid by a local department
of the State Social Insurance Board according to this Law and the
rules and regulations for the granting and payment of SSI
pensions approved by the Government of the Republic of Lithuania.
Applications for pensions may be filed three months before
the person becomes entitled to draw SSI old age pension or at any
other date after the occurrence of the right to draw SSI pension.
When applying for a pension all the necessary documents
specified in the Regulations for the Granting and Payment of SSI
Pensions must be submitted.
A local department of the State Social Insurance Board must
adopt a decision concerning the granting of a pension or the
refusal to grant a pension within the period established by the
Regulations for Granting and Payment of SSI Pensions and must
inform the applicant thereon. If the granting of a pension is
refused, the reasons for refusal must be stated.
Article 39. Time Limitations for the Granting and Payment of
Pension
SSI pension shall be granted and payable from the day the
person becomes entitled to draw a pension but not more than 12
months prior to the day of the receipt of application documents
by State Social Insurance Department.
In the event of deferred application for SSI old age
pension, the pension shall be paid according to the procedure
established by Article 24 of this Law.
SSI pensions shall be awarded for life or for the period
during which recipient retains the right to draw this pension
under this Law. The State Social Insurance Department that pays
the pension must notify the pensioner of the discontinuance in
advance of the date the payment of pension is discontinued.
Upon the expiry of the term for which the pension was
granted, its payment shall be discontinued if the recipient of
the pension loses the right to receive it. If the recipient of a
pension for valid reasons fails to apply for an extension of the
payment of pension in due time, the pension shall be paid without
interest for the entire period but not more than 3 years after
the discontinuance of payment but the recipient of pension was
eligible to draw this pension. If there is no justified reason
but the right to draw pension is retained, the payment of pension
shall be renewed from the day the application for the extension
of the payment of pension is being filed.
Upon the death of the pensioner, the pension shall be paid
to persons who buried him, for the month when death occurred, if
it had not yet been paid and it shall be paid at the same rate
for the next two months.
Article 40. Recalculation of Pension
If a person who has been awarded SSI old age pension accrues
an additional, but at least three-year SSP insurance period while
working under employment contract, or on the basis of membership
or service, at his request the pension may be recalculated
according to the new data from the moment of the filing of the
application. When the pension is being recalculated, the
requirements set forth in Article 17 shall not be applicable.
If a more severe disability Group is assessed for the
person, at his request SSI disability pension shall be
recalculated according to the new data or shall be paid according
to the former insurance period and earned income, by increasing
it twofold (if Group 2 is decided upon instead of Group 3) or by
commencing to pay the supplement for nursing (if Group 1 is
decided upon instead of Group 2). If a milder disability group is
decided upon, SSI disability pension (if it has been awarded
earlier) shall not be re-calculated, and the former pension shall
be paid but without the supplement for nursing (if Group 2 is
decided upon instead of Group 1) or reduced by 50 % (if Group 3
is decided upon instead of Group 2).
Article 41. Payment of Pension when a Person Decides to Live
Abroad
When a pensioner transfers his residence to a foreign state,
the awarded pension shall be paid to him provided:
the pensioner has accrued at least the minimum SSP insurance
period required for drawing a respective pension (this amendment
shall become effective as of 1 January 1998) working in
enterprises, offices and organizations located in Lithuania;
the pensioner is a rehabilitated political prisoner or
deportee who has accumulated a part of the insurance period
during the imprisonment or at the place of deportation (Article
52).
In other cases a pension shall be paid for 6 months ahead in
the amount of the pension he has been entitled in the month of
departure, and thereafter its payment shall be discontinued.
Upon Lithuania's accession to international conventions or
upon the conclusion of international agreements concerning the
payment of pensions, the pension shall be paid according to the
procedure provided for in international conventions or
agreements.
Article 42. Overpayment or Underpayment of Pension
The sum of the SSI pension not received when due through the
fault of the office which has awarded or is paying it shall be
paid for the past period without imposing limits by any term and
by indexing it according to the procedure set forth in the
Regulations for Granting and Payment of the SSI Pensions.
The recipient of a pension must notify the regional
department of the State Social Insurance Board, which pays his
pension, about the circumstances upon which the amount or payment
of a pension depends, within ten days from the occurrence of such
circumstances. If the pension is overpaid because of the failure
to give notice of such circumstances in due time, the overpaid
amount shall be recovered from the recipient by the decision of
the head of the office which pays said pension.
Article 43. Appeals against the Decisions of SSI Offices
Decisions of the regional departments of the State Social
Insurance Board concerning the persons' right to draw a pension
may be appealed against to the State Social Insurance Board. The
procedure and time limits for appealing and for the consideration
of appeals shall be established by the Regulations for Granting
and Payment of the SSI Pensions.
The decisions of the State Social Insurance Board and its
offices may be brought before the court.
CHAPTER 6
PROCEDURE FOR THE ENFORCEMENT OF THE LAW
Article 44. The Date of the Enforcement of the Law
The Law shall become effective as of 1 January 1995.
The award and payment of pensions in the event of disability
due to occupational injury or occupational disease (Article 31)
shall be regulated by the Regulations for Granting and Payment of
SSI Pensions until the Law on compulsory state insurance against
accidents at work is adopted and comes into effect. (Amended 21
December 1994)
Procedure for the Payment of Pensions
Article 45. Recalculation of Pensions Awarded prior to the
Coming into Effect of this Law
For persons who have been awarded SSI old age pension and
disability pension prior to the coming into effect of this Law,
pensions shall be re-calculated in pursuance of this Law on the
basis of data concerning earned income and the insurance period
recorded in the personal file (Article 47). If pensioners so
request, they may update the data concerning state social pension
insurance period or other period equated to it, recorded in the
file. The data concerning earned income recorded in the file may
be updated prior to the expiry of the time limit established by
this Law for the recalculation of pensions according to the
procedure established by the Regulations for Granting and Payment
of State Social Insurance Pensions. (Amended 21 December 1994)
At the request of persons for whom SSI pension has been
awarded prior to the coming into effect of this Law and whose
state social pension insurance period has thereafter increased by
a term of at least three years, the pension may be awarded anew
pursuant to the provisions of this Law, relative to the newly
awarded pensions.
Under this Law SSI survivors' pensions shall be awarded only
to persons who have died after this Law came into effect.
Survivors' pensions that have been awarded prior to the coming
into effect of this Law shall not be subject to recalculation.
For persons who died prior to the coming into effect of this Law,
survivor's pensions shall be awarded in accordance with the
procedure established by the Regulations for Granting and Payment
of SSI Pensions. (Amended 21 December 1994).
Retirement pension shall be recalculated into SSI old age or
disability pension only in the event its recipient is of a
pensionable age established by this Law. In the otherwise the
pensioner shall be paid the pension granted to him previously by
indexing it according to the procedure specified in Article 50 of
this Law. The procedure for the recalculation of pensions of the
officers of the internal affairs, national defense, State
security and of prosecutors office and of servicemen shall be
established by the Law on State Pensions of the Officers of
Internal Affairs, State Security, National Defense and
Prosecutor's Office and of Servicemen. (Amended 21 December 1994)
Regional departments of the State Social Insurance Board
must commence the payment of recalculated pensions not later than
after 6 months of the coming into effect of this Law. Up until
that time the pensioner shall be paid the previously granted
pension by indexing it according to the procedure specified in
Article 50 of this Law. If the recalculated pension is bigger
than the previous one, the difference shall be compensated to the
recipient from the moment of the coming into effect of this Law.
Article 46. The Basic Part of the Recalculated Pension
The basic part of the recalculated SSI old age and
disability pension shall be deemed equal to the SSI basic
pension, if earlier a person was granted the full corresponding
pension.
In the event a person was granted a partial pension, the
part of the base pension derived by multiplying the amount of the
base pension by the insurance period required for granting the
full pension at the time of the granting of pension and by
dividing by the certified insurance period recorded in the
pension file will be considered as the basic part of the
recalculated pension. (Amended 21 December 1994)
Article 47. Calculation of the Insurance Period while
Recalculating Granted Pensions
The total length of service recorded in the pension file
accumulated prior to the entry into force of this Law, shall be
deemed a person's state social pension insurance period accrued
while working under employment contract or on the basis of
membership or service.The periods which were included in the
insurance period by increasing their duration, shall be included
as periods of calendar duration .
Insurance periods recorded in a pension file after the entry
into force of the Law on State Social Insurance, shall be
considered as state social pension insurance periods accumulated
while working under an employment contract or on the basis of
membership or service for persons specified in Article 4 of State
Social Insurance Law, who have been paying fixed state social
insurance contributions.
When recalculating a disability pension the period specified
in item 2 of Par.3 of Article 29 shall be included into the
insurance period.
Article 48. Calculation of the Rate of the Person's
Insured Income while Recalculating Awarded
Pensions
When recalculating awarded pensions, the rate of the
person's insured income (Article 16) shall be calculated on the
basis of the data recorded in the pension file according to the
following procedure:
if the pension has been awarded on the basis of a person's
wage average recorded in the file, calculated on the basis of a
person's earned income prior to 1 January 1991 data, this average
shall be divided by the national monthly wage average of a
respective period ;
if the pension has been awarded on the basis of the person's
wage after 1 January 1991 data, monthly wages recorded in the
file shall be divided by the national monthly wage average of the
month of that year, and the average of the calculated quotients
shall be considered as the rate of the insured income. In this
case average monthly wage before 1 January 1991 shall be
considered to be equal to an average monthly wage of that year in
Lithuania.
Article 49. The Rule of Not Reducing a Pension
If upon the recalculation of a pension it becomes smaller
than the previous pension the pensioner shall be paid the
previously awarded indexed pension by further indexing it
according to the procedure established in Article 50 of this Law.
If the person whose pension is subject to recalculation, is
entitled to receive a pension of a person who suffered losses or
injuries under the Law of State Pensions, this pension shall be
awarded to him together with the recalculated SSI pension. If the
sum of both pensions is less than the pension received previously
then the former pension shall further be paid by indexing it
according to the procedure established in Article 50 of this Law.
In the event a higher disability group is established for a
person who has been paid unrecalculated disability pension
according to the lower Group of disability, at the request of
this person:
1) disability pension shall be granted according to the new
disability group and new insurance period and insured income data
without applying the requirements specified in item 2 of Par.1 of
Article 27;
2) disability pension shall be granted according to the new
disability group and according to the insurance period and income
data at the moment of the coming into effect of this Law;
3) unrecalculated disability pension shall further be paid
according to the previous disability group, by indexing it in
accordance with the procedure established in Article 50 of this
Law.
If a lower disability group is determined for a person who
has been paid unrecalculated disability pension according to the
higher disability group, at the request of this person:
1) disability pension shall be awarded according to the new
disability group and new insurance period and insured income data
without applying the requirements set forth in item 2 of Par.1 of
Article 27;
2) disability pension shall be awarded in accordance with
the procedure established in Par.2 of Article 40 of this Law
according to the new disability group and according to the
insurance period and wages data recorded in the pension file at
the moment of the coming into effect of this Law;
3) the disabled of Group 2 shall further be paid
unrecalculated disability pension according to the former
disability group whereas the disabled of Group 3 shall be further
paid 50 percent of the unrecalculated disability pension
according to the former disability group by indexing it in
accordance with the procedure established in Article 50. (Amended
21 December 1994)
Article 50.Indexation of the Unrecalculated Pension
Unrecalculated pension shall be indexed every time after the
approval of the amount of the new base pension or average monthly
insured income.
The portion of pension which does not exceed the amount of
the base pension shall be indexed as the base pension whereas the
remaining portion shall be indexed according to the ratio between
newly approved and former average monthly insured income.
If the unrecalculated pension exceeds or after the regular
indexation begins to exceed 500 litas, it shall be paid in the
amount of 500 litas and shall not be further indexed and shall
not be increased in any other way until the pension payable to
that person under this Law begins to exceed 500 litas.
The amount of the recalculated pension or which has been
newly awarded under this Law shall not be limited.
NEWLY AWARDED PENSIONS
Article 51. Entry into Force of the Condition under which a
Pension shall be Payable
The condition provided for in item 3 of Par.1 of Article 17
under which a person becomes eligible to draw the SSI old age
pension and the condition provided for in item 2 of Par.1 of
Article 27 under which a person becomes eligible to draw the SSI
disability pension shall become effective after the lapse of five
years (Amended 21 December 1994) from the date of entry into
force of this Law.
Article 52. Periods Equated with the State Social Pension
Insurance Period
The following periods which existed prior to the entry into
force of the Law on State Social Insurance shall be equated to a
person's SSP insurance period acquired by him when the person was
working under employment contract, on the basis of membership or
service :
1) the entire length of service of workers and employees as
well as length of work of collective farmers on collective farms
and length of service of other persons specified in the
Regulations for Granting and Payment of the State Social
Insurance Pensions, who had to be insured by state social
insurance subject to the effective laws;
2) the period of creative activity of the members of
writers' union, artists' union, composers' union,
cinematographers' union, theatre union, and the period of
creative activity of the other persons of free professions who
were not members of creative unions but who were united by
appropriate professional committees regardless of the payment of
social insurance contributions;
3) length of service in militarized security organizations,
in specialized communications agencies and specialized rescue
units regardless of jurisdiction and special or military rank.
The following periods which existed prior to the entry into
force of this Law shall be equated with a person's SSP insurance
period acquired when the person was working under employment
contract, on the basis of membership or service :
1) the period of payment of insurance contributions of
persons who were insured by the State Social Insurance pursuant
to Article 4 of the Law on State Social Insurance ;
2) the period of payment of insurance contributions of
persons who have insured themselves on a voluntary basis at State
Social Insurance offices;
3) the length of sickness (temporary incapacity for work)
allowance and maternity allowance payments to the insured
(employees) persons;
4) length of study at qualification improvement courses, the
length of post-graduate studies and post graduate studies for a
doctoral degree and in clinical experience (residency);
5) actual length of military, frontier and interior service
(with the exception of service in fighter battalions), excluding
the length of service of conscripts in national service. The
periods specified in this item shall be included in the insurance
period only provided the person does not get for them any other
pension;
6) the length of service of the State Security officers who
have sworn to the Republic of Lithuania ;
7) the actual imprisonment and deportation time of
rehabilitated political prisoners and deportees (for child
deportees - from the 14 years of age), provided this period was
not included according to item 1 hereof;
8) length of work of persons deported for forced labour
during the II World War as well as the period of confinement in
ghettos and other places of confinement during the II World War
(for children - from the 14 years of age).
The following periods which existed prior to the entry into
force of this Law shall be equated with a self-employed person's
SSP insurance period:
1) for mothers - the time of caring for and nursing a
disabled child under the age of 16 at home ;
2) for family members - the time of nursing the disabled of
Group 1 at home;
3) length of service of conscripts in national defense ; and
4) length of service of clergymen of all traditional
churches and religious organisations in Lithuania. (Amended 21
December 1994)
The periods specified in this Article shall be included in
the SSP insurance period according to the procedure established
by the Regulations for Granting and Payment of the State Social
Insurance Pensions.
Article 53. Income Equated with a Person's Insured Income
The following income shall be included in the person's
insured income over the period preceding the entry into force of
Law on State Social Insurance:
1) all types of payment for work on which the SSI
contributions had to be charged in compliance with the effective
regulations;
2) all types of payment received by collective farm members
for work on a collective farm;
3) author's royalty received by persons specified in item 2
of Par.1 of Article 52 ; and
4) earnings of persons who served in militarized security
system, special communications agencies and special rescue units.
The following income shall be included in a person's insured
income covering the period preceding the entry into force of this
Law:
1) earnings and other income of persons insured under
Article 4 of the Law on State Social Insurance on which
obligatory state social insurance contributions were paid, as
well as received sickness (temporary incapacity for work) and
maternity (pregnancy and child-birth) allowances;
2) declared sums of insurance of persons who insured
themselves with pension insurance on voluntary basis at State
Social Insurance offices;
3) the payment received by servicemen, officers of the
interior and state security specified in Article 52 of this Law;
and
4) income of persons attending qualification improvement
courses, of post-graduate students, persons who study for a
doctor's degree, clinical specialty (residents), established by
the State for certain categories of recipients.
Article 54. Calculation Peculiarities of the Rate of the
Insured Income
Until 1 January 1995, instead of average monthly insured
income the calculated average monthly wages of the employees of
public sector, public and private companies, announced by the
Statistics Department shall be used for the calculation of the
annual rate of the insured income.
As from the coming into effect of this Law, the rate of the
person's insured income shall be calculated according to five
successive most favourable calendar years of his SSP insurance
period, acquired when the person was working under employment
contract, on the basis of membership or service, chosen by the
person from the period between 1 January 1984 and 1 January 1994
and according to the total number of years included into SSP
insurance period when the person was working under employment
contract, on the basis of membership or service after that date
but not to exceed a total of 25 years.
As from 1 January 2004 only four successive years chosen by
the person as most favourable years from the period between 1984
and 1993 shall be taken into account when calculating the rate of
insured income; from 1 January 2005 - only three most favourable
years and so on until 1 January 2008, when the person's years of
insurance, which existed up to 1 January 1994 shall not be taken
into account for the calculation of the rate of insured income.
For a period equated with SSP insurance period (Article 52)
during which the person had no insured income, the rate of the
person's insured income shall be calculated according to the
minimum monthly wage of that period.
If there is no insured income or if it is impossible to
determine it for five successive years prior to 1 January 1994,
the rate of the person's insured income may be calculated
according to the available data on insured income for non-
successive five years or for the period preceding the period
between 1984 and 1993. Decision concerning such calculation shall
be passed by the head of the State Social Insurance office which
awards the pension.
Article 55. Regulation of the Pensionable Age and the
Insurance Period during the Transitional Period
Until 1 January 1995 the pensionable age shall be 55 years
for women and 60 years for men.
Beginning with 1 January 1995 and with each subsequent year
the pensionable age shall be increased annually : for women - by
four months per year, for men - two months per year. From 1
January 2009 the pensionable age requirement shall be 60 years
for women and 62 years, six months for men.(Amended 21 December
1994)
Until 1 January 1995 the obligatory SSP insurance period for
SSI old age pension requirement shall be 20 years for women and
25 years for men.
Beginning with 1 January 1995 and in each subsequent year
the obligatory insurance period shall be increased by one year
per year and until it reaches 30 years for men and 25 years for
women. Henceforth this period shall be increased by 1 year for
women until it reaches 30 years.
Article 56. Compensations for Special Working Conditions
Persons who prior to the entry into force of this Law, did
not have a SSI old age pension allotted, and who have worked for
the period of time specified in this Article and under the
special conditions stated in this Article, shall be granted the
right to receive monthly compensation payments. They shall be
entitled to draw the SSI pension according to the general
procedure established by this Law. (Amended 21 December 1994)
The persons who, prior to the entry into force of this Law,
have been working under special conditions shall be entitled to
non-recurrent lump sum compensations. They shall be entitled to
draw the SSI pension according to the general procedure
established by this Law.
For persons who prior to the entry into force of this Law
have been engaged in underground works, have been working under
hazardous conditions and in excessively hot work shops, specified
in List No.1 of productions, workshops, professions and
occupations which was effective in Lithuania, as well as for
persons who were engaged in other works under difficult
conditions specified in List No.2 :
1) for men who have been engaged in works specified in List
No.1 for at least 10 years and for women - for at least 7.5 years
the compensation shall be paid for 10 years;
2) for men who have been engaged in the works specified in
List No.2 for at least 12.5 years and for women _ for at least 10
years the compensations shall be paid for 5 years.
For flight personnel and flight- test personnel _ for men
who served according to the staff list of Flight personnel and
flight- test personnel which was in effect for 25 years prior to
the entry into force of this Law, and for women who have worked
according to this list for 20 years the compensation shall be
paid for 10 years.
For persons who prior to the coming into force of this Law
have been engaged in the following works the compensation shall
be paid for 5 years:
1) for persons who have worked for at least 25 years in the
regions of the Far North of the former USSR or for at least 20
years in the localities equated with them, according to the List
of Localities of the Far North Regions and the Far North
Localities, which was in effect prior to the entry into force of
this Law;
2) for women who for at least 20 years were engaged in works
specified in the List of Textile Industries and Professions which
was in effect in Lithuania;
3) for women who for at least 15 years have worked as
tractor- drivers in agriculture, other branches of economy, as
the drivers of construction, road building and auto-loaders
according to the List of Industries and Professions which was in
effect in Lithuania;
4) for actors whose length of service qualifies them to draw
a retirement pension according to the Regulations for Granting
and Payment of Retirement Pensions for Persons who Worked in Age-
Sensitive occupations;
5) for men, civil aviation employees, who were engaged in
air traffic control and had dispatchers certificate for at least
15 years, and for women - for at least for 10 years;
6) for civil aviation engineering staff who were engaged in
the work according to the List of Occupations of Civil Aviation
Engineering Staff, for men - who worked for at least 20 years and
for women - for at least 15 years.
For persons, who have worked for at least half of the time
established in Par. 2-4 of this Article, entitling to receive a
compensation for special working conditions, compensation shall
be paid in proportion to the actual time worked. If not less than
10 years' service is required in order to meet the conditions for
receiving compensation as indicated in this Article, not less
than half of that time must have been worked during 1988-1994, in
order to receive part of the compensation; if the required period
of service is not to exceed 15 years, not less than half of that
period must have been worked during 1986-1994; if a period of 20
years' service is required, not less than half of that time must
have been worked during 1983-1994; if a period of 25 years'
service is required, not less than half of this period must have
been worked during 1980-1994; if a period of 30 years' service is
required, not less than half of this period must have been worked
during 1978-1994. (Amended 21 December 1994)
If a person, for reasons specified in this Law qualifies for
several compensations, only the biggest compensation shall be
paid.
The amount of the monthly compensation payment is comprised
of 150 percent of the SSI basic pension.(Amended 21 December
1994)
For those persons who are entitled to receive either the
full amount or a part of the compensation, such payments are to
commence at the time when the number of months preceding their
old age pension age, as prescribed by this Law, shall equal the
number of months for which they are entitled to receive
compensation. (Amended 21 December 1994).
Persons, entitled to compensation, must contact their local
SSI Fund administration departments, over a two-year period
commencing from the coming into effect of this Law. (Amended 21
December 1994)
The procedure and terms for payment of compensations shall
be established by the Government of the Republic of Lithuania.
(Amended 21 December 1994)
I promulgate this Law passed by the Seimas of the Republic
of Lithuania.
Algirdas Brazauskas
President of the Republic
Vilnius
18 July 1994
No. I-549