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According to the Minister, by changing the procedure for calculating pensions, the Ministry seeks to equalize the general part of the pension for those who have different seniority to combat poverty, and the individual part of the pension, which is more dependent on contributions from employees will grow faster.
“The main proposal of the model of the Ministry of Social Security and Labor is another: to promote and increase, increase the individual part of the pension, which depends directly on the contributions paid. Because the basic part is only part of the pensions that people receive, the other part depends on the contributions we pay, ”Ms Navickienė said on Wednesday on the LRT television show“ Dienos Tema ”.
“Our suggestion is that those people who paid more contributions would receive higher pensions and would be indexed faster,” he added.
In July, the government defended the principle of accelerating pension increases over the next three years.
Total pension participation should increase faster for those whose insurance history is less than the required 32 years. In this way, the pension gap between those who worked and paid Sodra contributions for a short and long time would gradually narrow.
Some economists have criticized the provision, arguing that by avoiding paying taxes, people who have not accumulated seniority will receive pensions similar to those who have worked honestly.
M. Navickienė emphasized that the total pension participation for those who worked less would increase after estimating that the level of risk of poverty among the elderly is increasing.
“Therefore, without a change in the amount of the basic pension, we cannot achieve an optimal result with state resources,” the minister told the LRT.
According to her, most of the older people who receive the lowest pensions in Lithuania are women.
“Two-thirds of those people are women, probably for reasons we understand very well, who have not accumulated experience, whether it is raising children or caring for elderly parents, caring for the disabled and the like,” Ms Navickienė said at the Program. .
“That field of problems is too wide for us to dismiss all those people as tax evaders or the like. We need to address both if we want to achieve better poverty rates, ”he said.
With the updated indexation agreed by the government in July, the average pension would increase by around 14 next year, with the required service time, around 8 euros more than expected by current laws.
The Ministry of Social Security and Labor is expected to present concrete decisions on the increase in pensions in autumn, with the state budget package 2022.
According to the Ministry, after adjusting the indexation, the average pension would reach 461.9 euros next year, 498.8 euros in 2023 and 534.1 euros in 2024.
Without changing the model, according to the ministry, the average pension would reach 447.56, 480.19 and 511.3 euros, respectively.
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