Financial Services, Legislation, Lithuania, Pensioners

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 18:37

Lithuania's PM: compensations for cut pensions to start in late Q3

BC, Vilnius, 10.04.2014.Print version
Prime Minister of Lithuania Algirdas Butkevicius in an interview to radio Ziniu Radijas on Thursday said that compensation payments for pensions cut in the crisis should start in late 3rd quarter of 2014, informs LETA/ELTA.

"This month we will submit a draft law to the Seimas. By 1 May it will pass and payments will start, I think, at the end of the third quarter this year," Butkevicius said.

 

According to the prime minister, funds for compensation of pensions will probably be allocated not from the state budget, as it was intended at first, but from the budget of the State Social Insurance Fund Board (SoDra) which has surpassed its target income.

 

As reported, due to the economic crisis pensions were cut in 2010-2011, in the previous parliamentary term. Meanwhile compensations should be paid out by 2016.

 

According to the data of November 2013, there were 599,400 old-age pension beneficiaries, 143,900 incapacity pension beneficiaries and 70,000 disability pension beneficiaries.

 

It is estimated that LTL 443 million (EUR 128 million) will be required for compensations. The lowest amount of compensation will be approximately LTL 100 (EUR 29).

 






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