Navickienė hopes to reorganize the Employment Service this year; also analyzes the reform of state pensions



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In February, Ms Navickienė stated that it was necessary to change the practice of the unemployed registering with the Employment Service solely in order to obtain compulsory health insurance.

In the program “Delfi Tema”, the minister assured that the transformation of the Employment Service is the most important work for her this year.

“We are currently discussing with the Ministry of Health how the changes could be, what they could be and when they could be implemented. Because OCTs have more, I would say, problems. The bottom line is that we need to talk about the mission of this service in general: to get people to sign up for that service when they need a second chance at life, when they lose their job, and when they want to find a second job. . ”- Delphi Theme M. Navickienė spoke.

He assured that people are now enrolling in the OCTs “or for a generous allowance”, such as € 212 per jobseeker: “both third-year students and mothers, people who work in the shade and have no incentive to look for work “.

Navickienė hopes to reorganize the Employment Service this year;  also analyzes the reform of state pensions

Another reason is that people who need free compulsory health insurance enroll in OCTs because there is no other way to get it.

“We need to set a goal for each service to do its job and have its mission. It seems to me that the main mission of the OCTs, first, is to allow people to have a second chance and return to the labor market. And the second thing is that the need that exists in the labor market today on the part of employers, because there are many vacancies, would be better matched with the offer, that is, with our people who register and want to find that job, “said his vision M. Navickienė.

According to the minister, he wants to fundamentally review the activities of the OCTs and the issue of employment of people in general.

“To provide people who can work with all the tools they need to do so, and to work with employers and the Ministry of Education, Science and Sport on recycling opportunities, to meet the demands of a changing job market, to focus our efforts on higher value-added qualifications. My goal would be better and higher-quality employment of people, at least this year, “said M. Navickienė.

By unlinking PSD from the Employment Service, the unemployed could continue to receive insurance for free.

“When it comes to health insurance, I by no means mean that the unemployed should not be covered by PSD. It seems to me that we should move towards some principle of universal insurance. But currently discussions are taking place on this with SAM, and it is likely that quick decisions will not be made here, ”explained M. Navickienė.

Navickienė hopes to reorganize the Employment Service this year;  also analyzes the reform of state pensions

© DELFI / Andrius Ufartas

Promises to review state pensions

Ms Navickienė assures that the components of the pension system, which are triple: social security pensions, social assistance pensions and state pensions, are currently being reviewed. The focus is on the latter.

The social security pension system is the most systematic, it covers the main traditional risks and guarantees benefits: in case of old age, disability, widowhood, orphanage, it is financed with contributions from Sodra and is paid to cover a specific risk. The welfare pension scheme covers essentially the same risks and covers disabled or elderly people who, for one reason or another, have not completed a period of service. In the case of orphans, they did not have seniority because their parents passed away. The minimum income guarantee system is already financed from the state budget, ”M. Navickienė reviewed.

According to her, the most difficult situation is with state pensions.

“In fact, there are a great variety of benefits here, they are all of very different amounts, different award conditions and determination bases, these benefits are not covered by any contribution, they are paid by all Lithuanians. Unfortunately, politicians often bring with them a commitment to legitimize a specific guarantee for a particular group, which then finds a lot of support. Probably since 1995. this system has expanded, with more and more new benefits, and there are initiatives to further expand those existing beneficiary groups. We have already done some analysis and we are thinking about the changes that could occur in 2022 after discussions with stakeholders ”, promises M. Navickienė.

Navickienė hopes to reorganize the Employment Service this year;  also analyzes the reform of state pensions

It ensures that the review of public pensions would be based on transparency and unity, leaving existing or already acquired guarantees and changes would not be made retrospectively.

“The point is that the reform must have a vision of the future and it is clear that changes are already needed in this system. But when it comes to the whole system, it seems to me that the main problem today is the pensions that are too low, and this problem must be tackled by faster indexing of all pensions, ”says the minister.

Early retirement is wrongly called

In the program, Ms Navickienė assured that the difficulties of the elderly to find employment must be solved with other problems in addition to early retirement, which reduces income for life.

“It just came to our attention then. The form of early retirement doesn’t really seem very good or very fair to me. They were born, as you know, a long time ago, in 2004, and then they aimed to tackle such a delicate problem of people’s unemployment. higher: guarantee a minimum income for people. And for those who choose to receive an early retirement, reduced benefits are paid as long as the person lives. The decision made costs the rest of the time. Mathematically, this may be correct or justified, but Even so, the method chosen to solve the unemployment problem through the pension system did not seem very appropriate from the beginning, ”says M. Navickienė.

According to her, unemployment problems should be solved through unemployment insurance.

“A major reform of the early retirement plan is necessary. But it is also necessary to assess the current context in which we find ourselves in terms of insurance. Because the social unemployment insurance continues to be under great pressure, due to the situation of the pandemic, and in 2021 and 2022, and even in 2023, this type of insurance is expected to continue to be deficient. Therefore, before starting the transformation, we have to assess very well if the system will be financed in a sustainable way and what are the possibilities of making that change ”, explains the minister.

According to the Minister, there is currently a need to discuss how to allow older people to remain in the labor market if they so wish, and how to maintain the interest of employers in retaining such people.

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