| Abstract [eng] |
The current Lithuanian pension system consists of state social insurance pensions, accumulation for old-age pensions in pension funds using a special state incentive, additional accumulation for pensions in life insurance companies or pension funds, accumulation of occupational pensions, state pensions for state or occupational earnings and social assistance pensions. According to the current legal regulations, social pension insurance is compulsory in Lithuania. Social security pensions cannot meet all the needs in old age, so individuals themselves have to contribute to the accumulation in old age. Accumulation of old-age pensions in pension funds and additional accumulation for pensions in life insurance companies act as a means of equalizing this problem in the Lithuanian pension system. The granting and payment of social insurance pensions of the Republic of Lithuania is related to the length of service acquired by the person, the income received and the period from which it was paid. Entitlement to each pension is acquired only in the event of an insured event in accordance with the law governing the procedure for payment and award of that pension. There are no operating occupational pension funds in Lithuania. The reasons why occupational pension funds are still not being set up are the insufficient number of trade union members and the lack of understanding between trade unions and employers about how occupational pension funds should be managed. The state pensions of the Republic of Lithuania are paid exclusively from the state budget. In addition, the granting and payment of state pensions of the Republic of Lithuania, unlike other pensions, is associated with merits for Lithuania, therefore the regulation of these pensions is considered a privilege. Social assistance pensions of the Republic of Lithuania ensure the main goal of the state that social security be provided to everyone. As a general rule, social assistance pensions are granted to persons who are not entitled to higher or equal pension benefits. However, the current regulation provides for exceptions to the possibility of receiving other types of pensions at the same time. |
