The Seimas has decided how pensions will change

115 parliamentarians voted in favor, there were no votes against and two members of the Seimas abstained.

The reforms to the Social Pension Welfare Law seek to change the indexation of pensions so that, in the absence of economic growth and wages, they will increase as of next year. Pthe correction ensures that pensions rise anyway as GDP decreases but average wages rise.

Both the ruler and the opposition agreed

Mykolas Majauskas, chair of the Budget and Finance Committee, called for a vote on the indexing amendment on Tuesday. According to him, retirees should have no doubts about the increase in pensions in the coming years.

“The bill and the agreement of the Seimas on the fulfillment of the obligations with the pensioners are quite important, unlike the plan of the outgoing government. Laws were passed, including an initiative by the president to further index pensions so that the average increase in pensions is 9 percent. This will require an additional 67 million euros. financing and this will be done. Retirees shouldn’t have the slightest doubt, ”he said.

Peasant Tom Tomilin, meanwhile, stressed that there is a consensus between the ruling and opposition parties on the issue of pension growth.

“The fact that the pension indexation formula is being changed does not mean that our pension indexation law, which was passed another period before, is bad. In this case, there is only an improvement on the existing mechanism. No revolution is being made.

Life creates its own conditions, dictated by its own circumstances. We had a very atypical crisis, when we no longer have GDP growth, but we have a fairly good rate compared to other countries, and we have a growing wage bill. For this reason, with the effort of the opposition and the office, these amendments create conditions for a greater indexation of pensions, ”he explained.

According to him, the additional percentage of the basic pension was indexed at the initiative of both the president and some members of the Seimas. The MP was pleased that there is a consensus in parliament on the indexation of pensions, which will allow a safe increase in pensions next year.

During the discussion at the Seimas, Remigijus Žemaitaitis emphasized that the merits of the possibility of indexing pensions should be assumed not by the rulers or the opposition, but by the companies.

“The Seimas and the Government have added absolutely nothing here. (…) I would like to thank the Lithuanian businessmen, honest businessmen, who have been able to increase their salaries every month for the last ten years, proportionally every year. That index it is thanks to them. Members of the Seimas, the Government is only an instrument, an instantaneous instrument, to do what businesses have already done with the push of a button ”, explained R. Žemaitaitis.

Hinted borrowed money

However, not all parliamentarians have correctly evaluated the amendment to the law. Seimas member Kęstutis Glaveckas emphasized that, in the sense of economic efficiency, such use of money will raise many questions.

“The belief that tomorrow there will be cakes does not always pay off. The indexation adjustment is due to the fact that we promise that 63 million. Next year, regardless of economic growth, will be allocated. That is good. That money, not Needless to say, it comes from borrowed funds, European money. That European money comes, even along this line, from the suspension of the Stability and Growth Pact, “he explained.

2021 the state budget 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.