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“The new government must implement not only its commitments, but also the commitments made by the previous government, because the commitments were not made by Saulius Skvernelis, but by the Prime Minister. Including the indexation of pensions, which was adopted at the initiative of the previous legislature and at the initiative of the President, the indexation has risen to 9% ”, stated M. Majauskas.
According to him, it is difficult to explain why the outgoing government did not budget for this: if the indexation reaches 9%, it will require 67 million. additional financing.
Photo by Sigismund Gedvila / 15min / Mykolas Majauskas
“In general, there is a provision in the law that allows pensions not to be indexed at all in crisis years. Hidden behind such a reservation, the outgoing government tried to negotiate a lower indexation than was actually in an agreement. and it was promised to retirees – he proposed 7%, taking away the part proposed by the president for some reason, ”said M. Majauskas.
“We say that all commitments must be met, including the part of the pension indexation proposed by the president, which raises the indexation from 7% to 9%,” he added.
The Seimas will vote on indexing in years of crisis
Seimas will vote Tuesday on whether to change the previously planned pension indexation; without doing so, pensions would not increase in 2021.
The conservative Mindaugas Lingė, chairman of the Seimas Labor and Social Affairs Committee, told BNS that the amendment would allow the indexation of pensions when the economy is not growing, because now the indexation is linked to the growth of gross domestic product (GDP) .
Sigismund Gedvila / 15min photo / Mindaugas Lingė
“It seems that next year the economy will not show any growth, there is a recession and the indexing would have turned off,” M. Lingė told BNS.
If the Seimas adopts an amendment to the Social Security Pensions Law, with a decrease in GDP but an increase in the average salary, pensions would continue to increase.
According to the social democrat Algirdas Sys, a member of the commission, it is now established that pensions are not indexed in two cases: when not only both indicators are negative, but at least one of them. It is proposed to waive this last requirement.
“If (the old order – BNS) were left, pensions would not be indexed because GDP is negative, but the wage bill is growing by 7%. Now we go, if one of them falls, generally in GDP, then it is not indexed. With a negative wage bill, a positive GDP is only possible in theory, in practice it is impossible ”, commented BNS about A. Sysas.
Farmer Tom Tomilin says the order is being changed to take into account the coronavirus crisis.
“The current procedure is the strictest, so we are changing,” Tomilin told BNS.
The state budget for 2021 foresees 249 million. EUR only for automatic indexation of pensions 7.17%.
President Gitanas Nausėda proposed to index both the basic pension and the additional part, at 1.91 points, and thus increase pensions even faster. So far, 67 million funds have been allocated for this purpose. euros – not anticipated, but administrators intend to find them.
The Ministry of Labor and Social Affairs has indicated that automatic indexing would increase the average pension by € 27 to € 404 next year, or up to € 411 if the president’s proposal is approved.
The average pension is now € 377 and € 399 with the required service time.
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