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It has been widely announced that pensions have been indexed since the beginning of the year. Therefore, residents are concerned about why they received a larger amount in January and a smaller amount in February.
For the current and last month, differently
Tomas Tomilinas, a representative from the Lithuanian Union of Greens and Peasants, a member of Seimas, shared a comment on his personal Facebook account that several residents who had received lower pensions this month had applied for it.
“Today I have received complaints from residents of Anykščiai, Kaunas and other cities about supposedly reduced pensions. We discovered that this feeling of regression is related to the system of premiums for minimum pensions,” said the MP.
According to him, the bonuses are paid when the pension does not reach the minimum consumption basket (260 euros) and is paid for the previous month.
“In January, people for whom the pension increased due to the general increase in pensions since January could receive a higher pension than in February, because in January they also received the old supplement to the poorly paid December pension,” Tomilin explained.
He gave a real situation as an example. A person in Kaunas complains that he received 257 euros in December, 280 euros in January and only 268 euros in February.
This happened because the real human pension was still much lower than 257 euros and by decision of the previous mandate of the Seimas he was paid a bonus for stretching the pension to the minimum level (increase from below).
With the pension increasing to 268 euros in January due to the general increase in pensions, he is no longer entitled to the bonus, but in January he was still overwhelmed by the premium paid in December. Unlike pensions, they are paid bonuses for the previous month, ”commented a member of Seimas.
He considered that perhaps the poorest people should receive benefits in the same way as children’s money.
“In a world of growing inequality, robotization, there is a debate on a universal basic income, and these minimum pension bonds, even in the absence of seniority and accumulated contributions, are a practical example of a step towards a solidary solution such as money. ”- said T. Tomilinas to the portal tv3.lt.
Increased less than it might seem in January
According to Sodra, pensions are increased annually. They grow on average as the economy and the wage bill grow. In 2021, social security pensions increased 9.58 percent.
“Pension bonds are paid to those who receive the lowest pensions. The amount of all pensions received by those with the required seniority cannot be less than the amount of the minimum consumption needs. In 2020 it amounted to 257 euros and in 2021 increased to 260 euros. If a person has not accumulated the required time of service, they pay less. So, the amount of the bonus depends on the relationship between the length of service available and that required, “said Sodra in the comment.
It is said that after pension indexation, some residents may receive a lower premium. For example, a person with the required seniority had a retirement pension of € 230 last year and it was less than € 257, so they also received a supplement of € 27 for small pensioners.
After indexation, his pension in January 2021 reached 250 euros. Pensions are paid for the current month, so that in January the resident received a pension of 250 euros. At that time, the premiums for the previous month were paid, so in January the resident received a December premium, which was calculated on the basis of the pension received in December and amounted to 27 euros. So, in January, the person received a total of 277 euros.
In February, the resident received an increased pension of 250 euros and a complement for January, which amounts to 10 euros, so the total amount of pensions and benefits would not be less than 260 euros. Thus, compared to January, the resident received a lower amount, but compared to December 2020, this amount increased.
Other pension benefits can also lead to a reduction in the premium. For example, if a widow’s pension is granted to a resident, the bonus is reduced or not paid if the person’s income after receiving the widow’s pension exceeds 260 euros. This year, the basic amount of the widow’s pension has risen to € 28.63.
“Some people’s pensions will not only be indexed from January, but will also be renewed. These changes will affect retirees and disabled people who worked and paid social security pension contributions last year.
For most of these beneficiaries, pensions will increase due to additional service time and units of account. How much the pension of a working retiree or a disabled person will increase will depend on income from work and social security contributions paid for pensions, ”Sodra said.
Beneficiaries of small pensions whose pension (or the amount of various pensions they receive) does not exceed € 260 after renewal will continue to receive pension supplements.
Sodra estimates that minimum pension bonuses will be paid to about 95,000. people.
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